Proof of Concept Program

Proof of Concept Program

Funds proof-of-concept and technical feasibility work for South Dakota innovators ready to scale ideas.

The South Dakota Governor's Office of Economic Development (GOED) administers the Proof of Concept Program, a rolling grant of up to $25,000 that funds technical feasibility studies, marketing studies, and early commercialisation activities for innovators committed to launching or scaling ventures in South Dakota. Eligible applicants include entrepreneurs, universities, existing South Dakota companies, and other entities that demonstrate a commitment to commercialising results within the state. Applications are accepted at any time throughout the year, and GOED screens submissions and forwards them to a two-tier review panel within 10 business days of submission.

Applicants must provide a 10% match — in cash or in-kind — of the total project cost. Permitted uses of the grant include consultant contracts, materials and supplies, salaries for South Dakota-based employees, and services necessary for technical feasibility or marketing studies. Prohibited uses include principal or researcher salaries, incorporation legal fees, sales expenses, and general operational costs. The review process involves a technical evaluation by Research Affairs Council representatives drawn from South Dakota universities, followed by a business assessment conducted by private equity investors and incubator managers, with a final approval decision and contract execution prior to project launch.

The programme also functions as South Dakota's SBIR/STTR match vehicle: dedicated application tracks — the SBIR-0 Application and the SBIR Supplement Application — are available for innovators who have received or are pursuing federal Small Business Innovation Research or Small Business Technology Transfer funding, making the programme particularly valuable for deeptech and life-science companies bridging the gap between federal phase funding cycles. Companies that frame their feasibility work around a clear South Dakota commercialisation pathway and can demonstrate early technical and market validation are the strongest candidates for GOED reviewer approval.