Frequently Asked Questions
General
Why should I apply for the Public Innovation Challenge?
MDIA is not only a source of funding for early-to-growth stage startups. In addition to a $100,000 investment, we also provide a unique opportunity to test and validate your product/service with prospective customers, including local institutions and government.
What are the Public Innovation Challenges?
MDIA’s public innovation challenges source innovative private market solutions from across the globe which address specific issues impacting quality of life for Miami-Dade County residents. We support early-to-growth stage companies through equity investments and facilitate product and technology tests with local economic engines, including anchor institutions and municipal government.
MDIA only makes investments in connection with an open public innovation challenge. However, you may submit your product as a solution or an idea for a future challenge through our public innovation challenge proposal form. Your idea will be added to our database and evaluation queue for future consideration. You will also receive notifications when future public innovation challenges open.
For more information, please visit our about page.
Please send any press inquiries to press@mdia.miami.
How is MDIA different from angel investors and venture capital firms?
MDIA is a nonprofit organization whose purpose is to support innovative solutions that improve quality of life in Miami and accelerate venture growth. While we do take an equity stake in the companies to which we award funding, we focus on maximizing the “return on impact” by supporting the growth of our portfolio companies and their economic impact in Miami-Dade County as well as connecting the private and public sector to solve pressing community challenges.
What are the investment verticals?
MDIA identity public innovation challenges and invest in solutions that fit into one or more of the following categories:
Health: Technologies focused on human-centric applications that connect individuals with health systems and facilities, care teams, providers, insurance, public health & social services. These startups may also include applications in aging, assistive technology, and more.
Housing: Technologies that reduce the cost of supplying new housing, expanding access to capital for acquisition, improve risk-prediction and supply projection methods, or ease the costs and hassles of access and administration of housing affordability programs.
Climate: Technologies that create and advance resilient and sustainable cities by providing services and products for local environments, which includes buildings, neighborhoods, communities, and public spaces. These innovations may find applications in sustainability, climate change, renewable power sources, infrastructure, utilities, public works, beneficial use, circular economy, zero waste, and more.
Mobility: Technologies that improve methods and modalities (including air, land, water) for moving people and goods from one place to another, which consist of transport infrastructure, vehicles, and operations. These innovations may find applications in transportation, logistics, product delivery, autonomous vehicles, ridesharing and more.
Talent: Technologies that enable, empower, change, and expand capabilities in the future of work, education and the opportunities to close economic and social mobility gaps and experiences. These technologies may find applications in the workforce incentives and benefits, education and skills training, social good, government and civic services, and others.
How can I share my idea for a future public innovation challenge?
MDIA accepts ideas for future challenges from anyone through our idea form here.
Please note that submitting an idea is not an application for funding consideration. MDIA only makes investments in connection with an open Public Innovation Challenge.
How much do you invest in selected companies?
MDIA aims to develop a standard deal for all our investments that is streamlined and easy to effectuate. We will invest $100,000 in every company on standard terms through a safe (simple agreement for future equity) note that includes the following key terms and provisions:
CAP: an uncapped safe
Most Favored Nation: an MFN provision (the “MFN safe”) will take on the terms of the lowest cap safe (or other most favorable terms) issued between the start of the batch and the company’s next equity round. Simply put, we’re giving the company money now but at the terms you will negotiate with other investors later.
Milestones: our investment is contingent on the company must fully perform on its obligations to complete pilot testing and co-operating to report out on the outcomes of that test
Withdrawal: clarify circumstances under which safe is redeemable, including company's inability to perform on required pilot testing and reporting out of the outcomes of that test
Use of proceeds: no restrictions on use of proceeds
Pro rata rights
Information rights
What can I use the MDIA investment for?
You can use the MDIA investment for anything that you believe that will help your business successfully complete MDIA’s facilitated public test.
Am I too early to apply to a public innovation challenge? Should I wait until I have more traction?
MDIA is ideal for startups in their early-to-growth stages where up to $100,000 and a public test opportunity will make a significant impact on the business. All applicants must be incorporated as a for-profit entity, and we require companies to have an actual product and/or service that is ready to test with an institution or local government. This includes a functioning product, customer discovery, or some other market research beyond gathering data online to demonstrate that your idea has been validated. We do not accept idea stage concepts.
We’ve already been working on our startup for a while. Is MDIA appropriate for us?
Yes. Even for companies that are further along, our objective is to help provide a clear pathway to revenue through our facilitated public tests designed to provide an independent validation of your solution with local government or a relevant anchor institution. Tests are critical milestones in a startup journey that can lead to higher valuations, de-risk follow-on investment and perhaps most importantly, unlock commercialization opportunities through procurement or contracting.
We don’t really need the money. Does it still make sense to apply?
Many startups we consider funding don't need the money. Our investment is intended to help defray the costs associated with participating in our facilitated public tests, which are designed to provide an independent validation and test of your solution with local government or a relevant anchor institution. Typically, public tests are performed at the cost of the startup, which often lacks the connectivity or discretionary funding to lead a public test.
Eligibility
What are the eligibility requirements for companies applying?
The company must have an actual functioning product and/or service that is ready to test and validate with an institution or local government. We do not accept idea stage concepts.
Startups should be legally registered and compliant with all relevant regulations and laws in their respective jurisdictions.
The product or service must fall into one of the MDIA’s investment focus areas.
Is anyone ineligible?
MDIA staff and board members and their immediate family members (spouse, child, parent, sibling) are ineligible to apply for a public innovation challenge.
MDIA does not accept applications from companies that directly produce, manufacture or distribute cannabis.
I am not a U.S. Citizen. May I still apply?
Yes. Non-US citizens need to have appropriate work authorization to legally work on their business full time in the United States for the duration of the public test. If you apply and are invited to participate in an MDIA public innovation challenge test, we will connect you with an immigration attorney who may be able to work with you to develop an individualized or company immigration plan. There are a number of possible visa options depending on the details of your situation.
We’ve already raised funding. Can we still apply?
Yes.
If we participated in an accelerator or incubator program, can we still apply for MDIA’s public innovation challenge?
Yes.
Does MDIA require foreign companies to incorporate in the U.S. to be eligible for funding?
If your company is structured as a limited liability company (LLC) or is incorporated / registered in a non-US jurisdiction, we encourage you to register or reincorporate your entity in the United States as a Delaware corporation. This corporate form may enhance the appeal of your company to U.S. investors. Please note that registering as a U.S. Delaware corporation may incur associated fees and costs.
MDIA reserves the right to condition eligibility for investment, subsequent funding deployment, or any facilitated pilot opportunity on the satisfaction of a requirement that a winning company register as a Delaware corporation.
Application
How do I apply?
Visit our application portal to apply.
Does it cost to apply for a Public Innovation Challenge?
There is no cost to submit your solution to one of MDIA’s open public innovation challenges.
Should I include a demo or video demonstration in my application?
We encourage you to include a direct link to a video that could further illuminate your product or service for our evaluation and selection panel. Please be aware that we do not require our panel members to open or download any videos or demos when reviewing applications. We suggest you make the process of entering the demo or app easy and not require login passwords or collecting any information.
Can I apply more than once?
Yes, however the scope of each public innovation challenge will change. Therefore, you must ensure that the solution you are proposing is responsive to the public innovation challenge for which you are applying.
Public Innovation Challenge
How are the products / services screened?
A panel of subject matter experts and investors will screen each application to make sure that they meet all requirements and review each submission to determine which products or services are most responsive to the scope of the relevant public innovation challenge.
What are the key evaluation criteria when reviewing companies in the online application process?
The evaluation of each application is based on many factors, but the five following criteria are the most important:
Solution/Product: Originality and innovation; tech readiness; stage of development
Market Potential: Profitability and industry trends; potential of solution to secure procurement or commercial contracts in local or other markets
Impact: Alignment with Challenge Host goals and strategy (i.e. how well does the product/service solve the challenge at hand), secondary community impact
Pilot Feasibility: Solution can be piloted with the Host organization, meets criteria and adheres to any limitations outlined
Company & Team: Business Model, market traction & sales, users and prior tests or validation opportunities; Founder skills and complimentary skillset of the founding team (i.e. how will they make the company a success?)
What are the stages of the selection process?
MDIA employs a multi-stage evaluation process which takes place over the course of 8-10 weeks from application close. Applications will be assessed on the market for the solution presented, the feasibility of a pilot test, and looks at the company holistically against the key criteria listed below. We will be providing email updates as applicants move through each stage.
There are several stages for which applicants may progress:
Round 1: Eligibility Review
Round 2: Application Review + Finalist Selection
Round 3: Finalist Interviews + Winner Selection
You may be asked to provide additional information regarding your solution throughout the evaluation process.
Do we need to know someone at MDIA to be selected?
No. One of MDIA’s core principles is equity, therefore we consider all applications equally without regard to race, color, creed, religion, national origin, citizenship, sex, age, sexual orientation, gender identity or gender expression, marital status, veteran status, physical or mental disability or other protected classes prohibited by applicable law. We don't rely on introductions the way many investors do.
How will I know if I have been selected to participate?
All company’s will receive an email notification indicating whether or not their solution is selected for consideration and due diligence for a potential investment and public test and validate opportunity.
How many companies will be selected for investment and public test?
We anticipate selecting at least three companies for each challenge to receive a target $100,000 investment conditioned upon the company’s participation in a test of their solution with local government or relevant institutions.
How will funding be distributed?
There are multiple disbursements throughout the test process. The exact schedule will be included in the Investment Agreement. MDIA Companies are required to provide basic reporting information to MDIA on an ongoing basis, for as long as the business is in operation. This information helps us track how our businesses do in the long term. We do not ask for proprietary information or trade secrets.
Requirements
Do applicants need to disclose prior funding to the business?
Yes, applicants are required to disclose all sources of funding already received and/or committed in the application process.
Under the JOBS Act regarding general solicitation, MDIA requires that participating companies rely upon SEC Rule 506(b) (i.e., not use the public innovation challenge for general solicitation to offer or sell securities). MDIA strongly encourages you to become familiar with the rules under the JOBS Act and to consult experienced legal counsel about applicable securities regulations. By submitting your application for MDIA’s public challenge, you agree that MDIA does not give investment legal advice and that you are responsible for ensuring your compliance with applicable securities laws.
If I am selected for MDIA’s Public Innovation Challenge, what will I need to agree to?
MDIA has several keystone obligations to which selected companies must adhere to receive funding:
Locate or relocate significant operations of the business to Miami-Dade County sufficient to execute on the public test.
Successfully complete a test designed to validate your solution in collaboration with local government and/or relevant anchor institutions during the specified timeframe and in accordance with the test requirements.
Accurately and timely share relevant data and information throughout the duration of the test, such as: performance metrics, usage data, feedback and any other relevant information necessary to evaluate the test’s effectiveness.
At the conclusion of the test, together with MDIA team, to prepare a comprehensive report summarizing the results and findings. The report should include the objectives, methodology, data analysis, key insights, challenges encountered, and recommendations for future actions. The report should be ready for publishing 45 days after the completion of the test.
Provide MDIA with data regarding jobs created, revenue generated and follow-on capital attracted. We will collect this information biannually for as long as the business is in operation.
Can I continue to fundraise?
Yes, many companies pursue fundraising during and after their public test, and MDIA will support these efforts with preparation assistance, mentoring, connections to the local and national investment community, and an opportunity to participate in any of MDIA’s investor focused events.
Can I attend an accelerator or other program?
Yes, companies may attend an accelerator or incubator program, as long as it does not impact their ability to execute on their public test or conflict with any MDIA required test activities.
What about my intellectual property?
While MDIA is not in a position to protect or advise you on your intellectual property rights and does not take any responsibility for doing so, it does require non-disclosure agreements or other confidentiality obligations from anyone involved in its evaluation process.
You are solely responsible for protecting your intellectual property rights (patents, trademarks, copyright, trade secrets, etc.) in your solution. If you think you have intellectual property rights or you might want to patent your solution someday, it is strongly recommended that you consult an attorney before disclosing this information in your submission.
Applicants are expected to submit a compelling presentation without disclosing critical intellectual property. By submitting an application, you acknowledge that applying could result in disclosure of your intellectual property if such information is included in your application.