Direct Assistance Program

Directed Energy’s Direct Assistance program advances the interests of early and mid-stage clean, alternative energy companies with locations in Western New York. The goal of this program is to provide modest levels of financial and business development assistance to companies that have the potential to develop new technologies, products, or services relating to the production and/or efficient use of energy.

There are two forms of assistance offered: Project Assistance and Business Plan Assistance.

Project Assistance:

This program is designed for companies attempting to launch new technologies, products or services and require assistance to meet near-term goals. Assistance will be highly customized to meet company needs and can take many forms including prototype development, advanced testing, developing a marketing/sales strategy, production planning, etc. Travel, capital equipment, labor costs, overhead, and debt servicing are strongly discouraged. Funding agreements under this program will require recipients to provide a 25% cash match and a reasonable royalty on sales to keep the program “evergreen.”

Business Plan Assistance:

Directed Energy recognizes the need for and benefit of comprehensive Business Plans for all companies. It is our experience that many business plans are incomplete or out of date. Directed Energy welcomes the opportunity to assist applicants with this important document and intends on making a number of small awards (up to10K) to companies that need Business Plan assistance, possibly as a precursor to receiving Project Assistance. The awards (including the company’s match, minimum 25%) will be used to hire experts to work with the applicant over a period of 3-6 months. The company will be responsible for writing the Business Plan and participating in a regular series of meetings to review progress and discuss improvements.

Evergreen Conditions (not applicable to Business Plan Assistance):

Directed Energy’s future lies not in public funding, but in proving itself to be “evergreen” (self-funding). In order to fund future projects, Directed Energy will seek to participate in the success of companies that receive assistance, without being an impediment to their growth. Future projects can be assisted only when companies previously assisted “pay back” into the program and “make up” for companies that were unsuccessful. Only the most competitive applicants will receive funding.

Directed Energy will preferably negotiate a reasonable royalty on “goods sold” or, only in special cases, may seek a modest equity position.