Companies making applications to rent space at BioVentures Center or Translation Research Incubator (TRI) are required to submit a written business plan for review by the Office of Innovation. The business plan must identify products(s), business model, markets (size, competition, fields), management, development process and timeline, financial costs, capitalization or funding required, and financial projections for 5 years. The business plan must be sufficiently complete to identify meaningful milestones and allow a thorough and fair review of the applicant’s suitability to rent space at the BioVentures Center or Translation Research Incubator (TRI).

• Must be a new venture or a new initiative of an existing business.
• Must demonstrate a real need for business incubator facilities and services.
• Must be a technology-based business with commercial potential.
• Must have well-qualified principals involved in for the business.

The typical lease term at BioVentures Center and Translation Research Institute (TRI) is one year and is generally renewable for two additional terms or more depending upon the progress of the business; however, there is no provision for automatic renewal. Ninety (90) days in advance of lease termination a review meeting will be scheduled with the tenant to discuss the general progress of the business towards accomplishing the milestones set out in the business plan. The decision to renew the lease of the tenant for another year is based on the following evaluation:

• Is the company current on its rent payments?
• Is a current insurance certificate on file?
• Is the company in default of any provisions of the lease agreement?
• Has the company made reasonable progress towards milestones?
• Are the principals making a good-faith effort to build a business?
• Does the company have the working capital to achieve its goals?
• Has the company supplied a current Balance Sheet?
• Has the company supplied a current Income Statement?
• Has the company reached any of the graduation exit triggers?

Identifying the appropriate time for startup companies to graduate from the Iowa Research Park’s business incubator is handled on a case-by-case basis with each tenant. It is fair to say that different types of companies require different lengths of development time to achieve financial sustainability depending upon the technology involved. As a general rule of thumb, it will be time for a company to graduate when one or more the following conditions has been reached:

• The company is not actively using its rented space at the business incubator.
• The company has no continuing need for incubator services.
• The company has sufficient capitalization to afford space on its own outside the business incubator
• The company is occupying too much space in the incubator.
• The company has been acquired.

When the company is ready for graduation, Iowa Research Park staff will work collaboratively with the company management to plan a hard graduation date from the business incubator that allows for a smooth transition to new facilities.

If accepted into the business incubator a company must secure General Liability Insurance and provide a Certificate of Insurance as described in the excerpt below taken from the standard lease agreement:

INSURANCE: LESSOR and LESSEE shall each be responsible to protect its respective property interests. LESSEE shall purchase and maintain liability insurance from a responsible company in amounts not less than $1,000,000 for one person, and $2,000,000 for any one accident, and with limits of $1,000,000 for property damage, protecting LESSOR and LESSEE against such claims, damages, costs or expenses. LESSEE shall provide, annually or on request, a certificate of insurance evidencing such coverage to LESSOR.

Applicable Workers Compensation insurance to cover liability imposed by State statutes.  Employer’s Liability insurance of no less than $100,000 each employee and $100,000 each accident. 

LESSEE shall provide to LESSOR a certificate of insurance evidencing above insurance with the signed Lease and annually. 

All required insurance policies shall be issued by insurance companies authorized to engage in the insurance business in the State of Iowa, with an A.M. Best’s rating of A-, VII or better.  These policies shall be primary coverage.