THE INNOVATION FUND FOR CUREX FELLOWS COMPETITION FAQS

WHEN ARE THE APPLICATIONS DUE?
Applications are due on Friday, February 27, 2009 at 5PM. There are no exceptions. If applications do not reach The Idea Village by email, mail, fax, or hand delivery by this time, they will be automatically disqualified.

I HAVE QUESTIONS ABOUT THE COMPETITION. WHO CAN I TALK TO?
Please direct any questions to Miji Park, Director of Innovative Spaces. All general questions that are relevant to other interested applicants will be made public and shared with all CUREx fellows.
Email: miji@ideavillage.org
Phone: (504) 304-3286

WHAT SHOULD I INCLUDE IN THE APPLICATION?
Applicants are required to submit:

Venture Summary (Maximum of 100 words)
Innovation Fund Application, including 2 Reference names with contact information (A minimum of one reference must be professional or academic)
Business Plan (See details below)
Final Presentation with key highlights of the venture and a snapshot of a 90-day action plan
Disclosure of any personal or professional relationships to The Idea Village, The Idea Village staff, 504ward Business Competition and/or The Idea Village’s strategic partners, including GNO, Inc.
Conflict of Interest Certification (See Appendix A, Rules and Regulations)
Resume of Applicant and Management Team, if applicable

The Business Plan should be no more than 50 pages (including attachments) in 12 point, Times New Roman font. A business plan that is longer than 50 pages or deviates from these guidelines will be disqualified. The Business Plan should include information on the following:

Executive summary
Product or service description
Market analysis, including market size, potential market share, and market segmentation
How the venture addresses a barrier in the real estate system that delivers affordable housing
Sales and marketing plan
Competitive analysis, including description of competitors and competitive differentiation
Management team and/or advisors
Financial summary and highlights, including cash flow, income statement, and balance sheet
Anticipated uses of funding, and possible exit strategies
Appendices should include information that supports the findings, statements, and observations in the Business Plan
Appendices may also include up to three (3) letters of recommendation from previous employers, professors and/or business colleagues
Appendices may include Letters of Support from partner organizations, if applicable

WHAT TYPE OF BUSINESS SUPPORT WILL THE IDEA VILLAGE PROVIDE DURING THE APPLICATION PROCESS AND BEFORE APPLICATIONS ARE DUE?
The Idea Village will provide 2 personalized strategy sessions to support each applicant while business plans are being developed. One strategy session will focus on the financial aspects of the venture, including cash flow projections, start-up budgets, and financing options. The other strategy session will be a strategic consulting session and will focus on the overall business model. Experts at each strategy session may include experienced staff from The Idea Village and outside consultants in relevant fields.

WHAT TYPE OF TECHNICAL ASSISTANCE WILL THE IDEA VILLAGE PROVIDE TO THE WINNING ENTREPRENEURS?
The Idea Village, in partnership with GNO, Inc., will serve as a strategic advisor and support the development of winning ventures for 8 months after winning applicants are announced. Support is tailored to the specific needs of each venture and may include any combination of the following:

BUSINESS DEVELOPMENT: Business Plan Refinement; Strategy Development; Financial Models; Research
MARKETING: Public Relations; Media Training; Marketing Plan; Logo Development
FINANCIAL ASSISTANCE: Grants; Access to loans; Access to private capital
PROFESSIONAL SUPPORT: Human Relations; Accounting; Legal; Industry-specific support
EDUCATION SERVICES: Marketing; Financial Literacy; Technology

The Idea Village, in partnership with GNO, Inc., will bring together diverse expertise in its staff and network to develop a “Start-Up Advisory Team” for the winning ventures. In addition to staff, the Start-Up Team will include external consultants who are experts in real estate-related industries. The consultants will provide specialized support services, creating a robust team of advisors for each venture.

HOW WILL THE $500,000 PRE-DEVELOPMENT FUNDS BE ALLOCATED?
The $500,000 Pre-Development Fund will be allocated amongst the three winning ventures at the discretion of the Start-Up Team and the action plans will help inform the allocation of the Pre-Development Funds to the ventures. The allocation will be based on the funding requirements of the winning ventures and the anticipated impact of such funding. Funding will be allocated based on specific milestones decided upon by both The Idea Village and the winning applicants.

Funds will likely be disbursed during the course of the development of each venture with disbursements tagged to the milestones. However, The Idea Village recognizes that some ventures may need a different disbursement structure and will make these decisions after the winning ventures are identified.

WHAT TYPES OF BUSINESSES ARE YOU EXPECTING?
We don’t have all the answers – that’s why we leave it to you. Examples could include anything from innovative mixed-income, mixed-use affordable housing developments, real estate financing products that increase opportunities for affordable housing ventures, or a consulting company that improves how affordable housing delivers a wider range of services to its residents. The structure of applicant ventures may include, but are not limited to, real estate developers, land developers, lenders, investors, real estate processors and packaging operations.

HOW DO I PROVE THAT MY VENTURE “ADDRESSES A CRITICAL BARRIER IN THE REAL ESTATE SYSTEM THAT DELIVERS AFFORDABLE HOUSING”?
As experts in the fields of real estate and affordable housing, it is up to you to make the case. The goal of the Fund is to create systemic change in affordable housing. What are the key barriers that decrease the quality and quantity of affordable housing? Keeping in mind that numerous experts have attempted to reform the field of affordable housing, we encourage Fellows to be innovative and take calculated risks to achieve these impacts. At the same time, Fellows must prove the sustainability of the venture.

IS THERE AN APPLICATION FEE?
No. It is free to apply.

ARE NEW VENTURES THAT ARE A PART OF AN EXISTING ORGANIZATION/BUSINESS ALLOWED?
You must be a primary executive or part of the management team of the existing organization or business that is starting a new program that addresses a critical barrier in the system of real estate that delivers affordable housing to apply for the Innovation Fund.

WILL THE IDEA VILLAGE AND GNO, INC. SIGN A NON-DISCLOSURE AGREEMENT?
The Idea Village and GNO, Inc. do not sign N.D.A.s. We see thousands of proprietary ideas and business plans each year, many of which have similar elements. It is our business to help companies secure funding, not take their ideas. All information that you put into your application is confidential. The only people who have access to your application are The Idea Village and GNO, Inc. employees, competition judges and Start-up Team advisors. Our advisors are experts in certain fields and if we need help evaluating your idea, we may ask them for their opinions.

I HAVE A QUESTION ON THE OBJECTIVE CRITERIA, “COMMIT TO GROWING IN THE NEW ORLEANS REGION”. WHAT DOES IT MEAN?
Applicant ventures should commit to headquartering itself in New Orleans for at least 3 years and demonstrate an overall commitment to the growth and revitalization of New Orleans. Winning ventures will be required to sign a Letter of Intent demonstrating the venture’s commitment to headquarter in New Orleans for at least 3 years.

TO WHAT EXTENT DO I HAVE TO PROVE MY VENTURE MEETS THE SUBJECTIVE CRITERIA AND THE PREFERENCES?
The Idea Village understands that each venture is unique. Accordingly, it is up to you to make the case, emphasizing the criteria and preferences that are best met by your venture.

WHAT IS THE TIMEFRAME FOR WINNING VENTURES TO OPEN AND BEGIN OPERATIONS?
While The Idea Village has a preference for ventures that are able to open and start making an impact quickly, it also recognizes that meaningful impact requires time. Each Applicant Venture will need to present its 90-day action plan for opening as a part of its Final Presentation, during which the Applicant will need to make the case for the venture, in respect to its timeframe and potential impact.

WHO WILL DECIDE WHO WINS THE COMPETITION?
The Idea Village will engage a Final Judging Panel of seven judges in areas of expertise that may include affordable housing, community development, real estate finance, entrepreneurship, urban planning, tax credits, government, and real estate development. In the case that ventures are place-based, The Idea Village will strive to ensure that at least one panelist has experience in the neighborhood represented by the concept and the “Neighborhood Advisor” will share feedback on the business plan.

HOW WILL THE JUDGING PANEL IDENTIFY THE WINNERS?
The Final Judging Panel will make recommendations based on scorecards developed by The Idea Village. The scorecards will reflect the Objective and Subjective Criteria as well as the Preferences. One scorecard will be used for the judging of the business plans, while the other will be used for the judging of the final presentations.

DO LIVING STIPENDS INCLUDE HEALTH CARE AND OTHER BENEFITS?
No. Winning applicants will not become employees of The Idea Village, and therefore, will not be eligible for health care and other benefits offered to employees of The Idea Village.

HOW WILL THE LIVING STIPENDS BE DISBURSED?
Living Stipends will be disbursed over the course of 2 years on a bi-weekly or monthly basis, as decided by The Idea Village after winning ventures are identified.

I APPLIED FOR THE 504WARD BUSINESS COMPETITION. CAN I ALSO APPLY FOR THE INNOVATION FUND?
Yes. You can apply for both competitions. If you applied to the 504ward Business Competition, you are required to disclose this information. Disclosing this information will NOT result in your disqualification.

This competition coincides with the Semi-Final Round of the 504ward Competition. If you are identified as a Semi-Finalist in the 504ward Competition, you may also apply for the Innovation Fund Competition. Winners of the Innovation Fund will be identified before Finalists in the 504ward Competition are announced. If you are a winner of the Innovation Fund, you are required to make a choice. You may either rescind your application to the 504ward Competition or you may rescind your application to the Innovation Fund. You may not be a winner in both competitions. You will be required to make this decision within 48 hours.

DO FELLOWS NEED TO LEAVE THEIR RESPECTIVE ORGANIZATIONS TO APPLY FOR THE FUND?
While Fellows do not need to leave their respective organizations to apply for the Fund, Applicants should realize the competitive nature of the Fund. A major component of any venture is the management team and its commitment to the success of the venture. If the Applicant will work on the venture part-time, he/she will need to make the case that the venture will be successful.

DO VENTURES NEED TO BE FOR-PROFIT?
No. Ventures do not need to be for-profit. However, The Idea Village stresses that applicants need to demonstrate a high-potential for sustainability. With this in mind, applicants need to prove the ability to support the venture financially for the long-term.

MY VENTURE PARTNERS WITH OUTSIDE ORGANIZATIONS TO ACHIEVE ITS IMPACT. WHAT TYPE OF PROOF DO I NEED THAT THESE ORGANIZATIONS WILL PARTNER WITH MY VENTURE?
If a venture has partner organizations, each partner should submit a Letter of Support describing its support of the applicant and the venture, as well as detailing what products or services the partner organization intends to provide.

MAY I SUBMIT AN APPLICATION WITH OTHER FELLOWS?
Of course. We encourage you to partner with other Fellows to submit joint applications of mutual interest and compatible areas of expertise. You may submit one application for both of you; however, please make sure to include both Fellows’ information on the Innovation Fund Application and other relevant submitted materials.

WHAT TYPES OF RELATIONSHIPS WITH THE IDEA VILLAGE AND/OR GNO, INC. MUST BE DISCLOSED?
Please disclose any relationships your business, any individual involved in it or their immediate family has with anyone on the staff of The Idea Village and/or GNO, Inc. or their immediate family. Being transparent about any of these relationships will not jeopardize your ability to participate in this competition. Failure to disclose them will. The Idea Village reserves the right to stop any grant if it learns about a potential conflict of interest that you did not disclose in advance. If you need information about what might constitute a conflict of interest, please seek clarification.

WHERE SHOULD I SEND MY APPLICATION?
Applications can be submitted by any of the following means:
Email: miji@ideavillage.org
Mail and Hand Delivery: 638 Camp Street; New Orleans, LA 70130
Fax: (504) 304-3294 (If applications are faxed, please email or call Miji to confirm delivery.)

Have more questions? Don’t hesitate to e-mail them to miji@ideavillage.org
We will answer your questions in a timely fashion and, if relevant, post it for all CUREx Fellows.