• ANTECEDENT

Xpand Puerto Rico is a growth stage program developed by Parallel18, designed to support companies looking to access new markets by providing resources for sustainable expansion.

Parallel18, a program of the Puerto Rico Science, Technology, and Research Trust, is a top-level, performance-driven international innovation hub focused on providing funding, mentorship, business connections, and investment to underrepresented founders around the globe.

The Puerto Rico Science, Technology and Research Trust (the “Trust”) is a private non-profit organization created to maximize Puerto Rico’s participation and creation of jobs in the global knowledge economy by promoting investment and financing of science and technology research development. The organization manages and hosts over a dozen initiatives that range from grants and technical support to meetups and educational resources for researchers, entrepreneurs, farmers, investors, and other groups.

• MAIN GOAL

The purpose of Xpand Puerto Rico (hereafter, the “Program” or “Xpand”) is to support innovative companies that are on a growth-stage path and seek access to resources to sustain and expand their growth. Xpand aims to provide more direct support to the participating companies.

General goals for the implementation of Xpand include:

1. Promote the growth of the local economy while remaining politically agnostic.
2. Increase and highlight the value that Parallel18 brings to Puerto Rico.
3. Secure support from private and all government sectors by showcasing success and advancing economic development.
4. Encourage local and global angel, venture capital, and private equity funds to invest in the most promising startups emerging from Puerto Rico.
5. Encourage Parallel18 corporate partners to engage in business development with startups, exploring new opportunities for corporate innovation.

• OBJECTIVES

Parallel18 aims to meet the goals set for Xpand by achieving the following targets:

1. Provide access to vetted private capital investors, including institutional and individual investors, the educational resources and tools to leverage these capabilities, the products, and financing opportunities.
2. Increase each company’s accessibility to additional domain knowledge experts to improve their product capabilities and inefficiencies and promote an operational perspective of optimization and maximization to compete in different markets with a clear advantage.
3. Improve the company’s customer acquisition strategies and capabilities through additional access to mentorship opportunities.
4. Increase the number of Puerto Rican companies expanding their business from Puerto Rico to new markets.
5. Promoting employment opportunities with the growing companies supported through the program will increase the repatriation efforts of the Puerto Rican diaspora.

• PARTICIPANTS

Companies that apply must have continued operation for over three years and must be for-profit organizations legally organized and registered in Puerto Rico, or the United States while authorized to do business in Puerto Rico. 

The founders applying to the Program must be over eighteen (18) years of age, and the Program participants may be at most three (3) people. Parallel18 has the discretion to accept team members below the age of eighteen (18) as extraordinary situations may arise.

The activities carried out by the company must have a business model with the potential to grow and scale its operations outside of Puerto Rico. This excludes companies whose main activity is consulting services, non-profit organizations, traditional import/export companies, or lifestyle businesses, as these are not considered to be highly scalable projects or with high growth potential.

Hereafter, companies participating in Xpand will be termed “Projects”. Individuals and team members will be termed “participants”. The gathered participants of the current Xpand generation will be termed “cohort”.

• PROGRAM ACTIVITIES

The Program will include a variety of activities and/or events, which will be made available to participants of each Project. 

5.1 Mandatory Activities

The Program Term runs throughout the calendar year, and the participant will have access to the Program from the date of Project participation acceptance until the end date of the program term. 

• • Initial Meeting: The participants will meet with the Program Manager and Startup Representative to establish their goals and objectives with the Program. 

• On-going:

• Technical Assistance: parallel18 Mentor-in-Residence will be available to help the participants with key needs based on each team member’s expertise.
• Office Hours: participants will have available 1 on 1 meetings with mentors from the parallel18 network.
• Meet the Founder: Informal gatherings of the cohort with selected founders from Puerto Rico that have achieved sustainable growth and scale.
• Workshops: Provided under the guidance of skilled mentors, these structured spaces are designed to address essential topics crucial for the continuous strategic development and growth of the company.

• Quarterly:

• parallel18 Connect Meetup: a networking meetup to connect with parallel18 entrepreneurs, corporate partners, mentors, and investors.

• End of the Year: A survey will be shared with cohort participants to acquire data on their progress for our assessment to improve Xpand’s offering further and tailor the experience better for the next companies to come.

5.2 Optional Activities

Optionally, the team leader or team member may participate in and/or carry out the following activities, unless these have been categorized as mandatory, as set out in the previous subsection:

• Presentations, office hours, workshops, classes, or other events organized by other program participants.

Other activities related to the project and/or program that were not described as mandatory.

If the Team Leader does not participate in the activities and/ or events specified herein without previous authorization to be excused, the Program may evaluate putting an early end to the Project, depending on the reasons.

• CONTENTS OF THE PROJECT

6.1 The applications must contain at least the following in English:

1. Legal and background documentation for each of the team members named in the project application, stating each person’s nationality, education, and technical experience.
2. Business organizational documents: when you apply to the program with a company that already exists, you will be required to submit documentation in case you are selected.
3. Identification documentation that will be required for selected companies and members may include a photocopy of government-issued photo identification (cards on both sides) that displays the name, photo, identification number, dates of granting, and the expiration of the ID (ID must not be expired). Participants must have original documents ready for when required to be shown.
4. A demo of the product and/or service to export and/or grow sales.
5. Description of the competition and the Project’s differentiation.
6. Stage or growth in which the Project is at the moment of application.
7. Explain the company’s goals and why you think Xpand would help accomplish the milestones that you are aiming to achieve.
8. Other documentation as reasonably required.

6.2. Additionally, the applications may contain the following:

1. Concerning the participants:

• Relationship with international networks to position Puerto Rico as an innovation hub.
• Activities to promote interaction, networking, and the transfer of knowledge skills, and best practices to local entrepreneurs and their environment.

1. Concerning the project:

• Expansion strategy
• Entry and exit barriers
• Progress to date and plan during the program
• Target market and its size
• Market position

1. Incomplete applications will be deemed not submitted.

• DEADLINES

The Program will run on a calendar year basis and will be understood to have begun on the date established by Xpand as the Initial Meeting Day. This date will be notified once identified by the team and is based on the term selected by the company.

• Parallel18 Ventures Matching Fund

Parallel18 Ventures is a subprogram of parallel18 focused on preparing startups for investment. The objective is to provide parallel18 the opportunity to participate in the accelerated growth of certain startups it is already supporting, with the possibility of obtaining a financial return on investment. 

8.1 Eligibility

Xpand startups that have completed the minimum requirements and are in good standing with the post-acceleration program, have the desire to raise capital or have secured investment capital will be eligible to apply to Parallel18 Ventures Investment application.

8.2 Funds

The TRUST, via Parallel18 Ventures, will allocate a maximum of $100,000 in seed capital that can be divided into up to 3 companies that stand out in the program. The TRUST reserves the right to adjust the investment amount, the number of investee companies, and the cohort targeted for investment at its sole discretion.

8.3 Instrument

The financial instrument will be at the discretion of the TRUST Investment Committee.

8.4 Criteria

Outstanding performance during the Xpand post-acceleration program, potential for continued growth, scalability, return on investment, and current and expected impact in Puerto Rico, among others, will be taken into consideration for investment decisions.

8.5 Procedure

This investment opportunity will be made available to interested parties as an application. Communication about the opening of the application will be conducted by an email from the Ventures Manager. 

8.5.1 Presentations to Investment Committee

Participants will pitch to the Investment Committee to share their use of funds plan. This pitch will be in person with a 10-minute presentation time and a 10-minute question and answer section for each participant. The program reserves the right to adjust these logistics based on the availability of the Investment Committee.

8.5.2 Announcement and Deposit of Funds

Awardees are expected to be announced to the startups via email by the end of the year after the review of relevant documentation and careful consideration by the TRUST to ensure the company fully meets all Parallel18 Ventures requirements, funding is expected to be provided by the first quarter of 2025.

• APPLICATION

9.1 Procedure

This Program will be made available to interested parties in the form of an application through the Younoodle platform. 

9.2 Means of Application 

Companies and the requested technical and economic documentation may be entered solely through the electronic platform entry system available on the website www.xpandpr.org.

The accompanying documents must be text documents, spreadsheets, or other files compatible with the system (such as doc, xls, jpg, or pdf).

9.3 Limit of Applications

Each applicant, even if not designated as team lead, may only apply once with one project per application period. Therefore, every team member must be working on only one project per cohort. If a team member is part of various applications for different projects, the Program may consider the Project and/or applicant invalid.

• EVALUATION PROCESS AND CRITERIA

10.1 Analysis of Pertinence and Relevance

The Xpand team will review all applications to determine if they meet the Program’s basic criteria. Compliance with the following requirements will be verified:

• 3 years of operations or more.
• The company must have operations in Puerto Rico or be looking to expand its business in PR.
• Companies with a proven impact in Puerto Rico or alumni of the parallel18 program.
• The company must have participated in an accelerator program before Xpand or generate more than $250,000+ in annual sales. 
• The company must have at least two people dedicated exclusively to its operations.

As a result of this analysis, the parallel18 team will classify, on a justified basis, the relevance or irrelevance of the projects. If a “Not Relevant” determination is declared, the project will not continue in the evaluation process.

Those who pass this Application Screening Round will advance to the Application Evaluation with the parallel18 team. 

10.2 Application Evaluation

The Program will examine the extent to which the project’s objective is congruent with its guidelines and objectives, verifying the consideration of the Growth Strategy, Market and Competitive Positioning, Team Qualifications and Expertise, and Capital Raising Plans, among other factors.

• Growth Strategy (40%)
• Market and Competitive Positioning (30%)
• Team Qualifications and Expertise (20%)
• Capital Raising Plans (10%)

10.2.1 Growth Strategy (40%)

A clear, realistic, and well-planned strategy is essential for successful expansion into new markets, which is Xpand’s main objective. The ability to identify and address potential challenges demonstrates foresight and adaptability, qualities crucial for sustainable growth.

• How clear and well-defined is the growth strategy?
• How realistic and achievable do the market expansion objectives seem?
• How well has the company identified and planned to address potential challenges?

10.2.2 Market and Competitive Positioning (30%)

In-depth knowledge of the target market, clear differentiation, and an effective customer acquisition strategy are vital for success in new markets. This criterion helps identify companies that have a solid foundation for expansion.

• How well-defined is the target market and how attractive does its size appear?
• How well does the company understand its competitive landscape?
• How compelling is the company’s differentiation from its competitors?
• How effective does the customer acquisition strategy appear to be?

10.2.3 Team Qualifications and Expertise (20%)

This criterion evaluates not only the current experience of the founding team but also its ability to attract and retain additional talent. A strong team and a solid talent management strategy are essential for executing ambitious growth plans.

• How strong does the experience and skills of the founding team appear to be?
• How strong is the company’s strategy for attracting and retaining talent?

10.2.4 Capital Raising Plans (10%)

Evaluate the company’s ability to attract investment and its financial planning for growth. A company that is attractive to investors and has sound financial plans is more likely to secure the resources needed for expansion.

• How attractive is the company to investors based on its investment history?
• How solid and realistic are the financing plans to support growth?

10.3 Interviews

During the evaluation period, an interview through video conference, or in person if feasible, will be requested to clarify questions from the evaluators if necessary.

10.4 Participant Selection 

Once the evaluation is concluded, the Xpand team will decide if there is a fit with the program objectives and the Program will have three business days to inform the applicants about the final decision and extend an offer to join the Program.

The accepted projects will be able to join the Xpand community immediately after completion of the Participation Commitment Form and sending the required documentation.

• EARLY END OF PARTICIPATION

The Program may determine an early end of Project participation in the following instances, among other possible justifiable reasons, applying the sanctions detailed below:

11.1 Early end of participation for reasons not attributable to the participants

Xpand may impose an early end to the participation on its initiative or at the request of the team leader in the following situations:

• Failure to achieve critical results or continuity milestones established by Xpand and/or the project for reasons not attributable to the lack of diligence of the project duly qualified by Xpand.
• It has become convinced that the project will not achieve the expected results and that it cannot be executed within reasonable parameters for reasons not attributable to the lack of diligence of the project duly qualified by Xpand.
• Other causes are not attributable to the team leader’s lack of diligence in carrying out the activities related to the project and/or to the team leader’s participation in the Program, duly qualified by Xpand.

If requested by the project and accepted by Xpand, it shall be understood that the project has been finished early from the date of the request.

The Trust may terminate Program activities or any company’s participation before the Program’s end whenever the Trust determines that such termination is in its best interest. Any such termination shall be effected by delivery of a written notice and the date upon which such termination becomes effective, which shall be at least fifteen (15) calendar days from the date of receipt of the notice.

11.2 Early end of participation by deed or act attributable to the project

Xpand may end the participation early if the project fails to comply through negligence or lacks due diligence in his or her obligations. The following situations, among others, may constitute a breach of the contract:

• Denial or hindrance of project monitoring.
• Negligence in performing financial and technical control activities.
• Failure to notify Xpand promptly about the impossibility of paying the contributions for which they and/ or the other participants are responsible.
• There is a serious discrepancy between the declared technical and/or legal information and real information.
• Failure to maintain good standing status throughout the Program’s duration.
• Other reasons are attributable to the participant’s lack of diligence in carrying out their activities related to the project and/or their Participation in the Program, as duly qualified by Xpand.

• WARRANTIES

The participants warrant and represent Xpand as follows:

1. The participants shall not violate any intellectual property rights, confidentiality, right of privacy, or another right of any person or entity whomsoever.

1. The participants represent that the information they provided to Xpand during the application and contracting phases is accurate and complete. However, each participant understands that in the event they have failed to disclose any relevant information that may have impacted Xpand’s decision to select their project or has provided false information, Xpand will be entitled to rescind the contract and their participation in Xpand with immediate effect, in addition to any other remedies which Xpand and the Trust may hold by rights.

• INDEPENDENT ENTITIES

The participants of the Program shall remain independent of the Trust and the Parallel18 Program (Xpand). Nothing contained in or relating to these Terms and Conditions, or any applicable rules, shall be construed as establishing or creating an employer/employee relationship or any partnership, joint venture, or agency relationship with the Trust or its Parallel18 Program.

The Trust and its Parallel18 Program shall not be responsible for any loss, accident, damage, or injury suffered by the participants arising during or as a result of their participation in the Program. The aforementioned are not responsible for any and all out-of-pocket expenses incurred in and for the participation of this Program or the Xpand Program, whether they may be incurred.

• LIABILITY

The participants hereby indemnify and hold the Puerto Rico Science Technology and Research Trust harmless from and against the full amount of any and all claims and liabilities, including legal fees and costs, which are or may be made, filed, or assessed against Parallel18 at any time and based on, or arising out of, breach by the participants of any of its representations or warranties under these terms and conditions, regardless of whether such representations and warranties are explicitly incorporated herein or are referred to in any attached Appendices.

• ASSIGNMENT

The participants shall not assign, transfer, pledge, or make any other disposition of these Terms and Conditions or any part thereof or any of their rights, claims, or obligations under these Terms and Conditions except with the prior written consent of Parallel18.

• QUESTIONS OR CONSULTATIONS

Questions may be addressed in English or Spanish to the following e-mail address: [email protected].