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Details & Application

THE BASICS

  • N.XT solicitations occur annually during the spring quarter
  • The size of N.XT investments are based on proposed milestones, up to $150K
  • Technical development milestones are prioritized for N.XT funding
  • Deals are most often structured in the form of convertible notes1
  • N.XT funds cannot be applied toward Northwestern employee salaries
1. A convertible note is a form of short-term debt that converts into equity at a later date, once your company has achieved a particular fundraising milestone. Like a loan, the convertible note accrues interest at a low annual rate. If your startup has not raised a qualifying round of equity financing upon reaching the maturity date of the convertible note, there will be an obligation to repay the debt with interest.

N.XT ELIGIBILITY

  • Intellectual Property must be owned by Northwestern
  • Venture (e.g. corporation or LLC) must be created
  • Option or License Agreement with Northwestern must be in place
  • Company must not have secured more than $1M in fundraising (including VC, angel, friends & family, and SBIR/STTR funding)

N.XT EVALUATION

Under the oversight of the N.XT Fund Manager and N.XT Investment Committee (consisting of venture capitalists and external industry experts), N.XT Associates assist with all aspects of diligence, much of which focuses on the following questions:

  • Are there well-defined milestones that can be realistically completed within one year given the proposed investment amount?
  • What is the Product/Technology potential (e.g., market size, accessibility, opportunity, business model, and value proposition)?
  • Is there a qualified team with the ability to attract proper management?
  • Is the commercialization plan achievable after N.XT milestones are reached?

EXPECTATIONS FOR RECIPIENTS

  • Agree to N.XT Terms and Conditions
  • Meet with diligence team: N.XT Investment Committee, N.XT Associate, and INVO New Ventures Team
  • Execute milestones, record and share progress with N.XT Fund Manager