Taft Plants Seeds of Growth With Additional Third Frontier Validation and Seed Fund Initiative Awards
COLUMBUS, OHIO (December 9, 2004) - Continuing to drive professional investment in Ohio's technology industry, Governor Bob Taft today announced that the State of Ohio will award an additional $1 million in Third Frontier Validation Fund and Seed Fund Initiative (VFSFI) grants to two more funds in Ohio. The Children's Hospital Medical Center TOMORROW Fund in Cincinnati and the 2005 JumpStart Evergreen Technology Validation Fund in Cleveland will each receive $500,000 to invest in start-up companies with revolutionary new technologies. This brings the total amount of FY2005 Third Frontier VFSFI grants awarded to $6 million, and the amount of early venture capital grants awarded since 2000 to nearly $18 million . The Children's Hospital Medical Center TOMORROW Fund in Cincinnati and the 2005 JumpStart Evergreen Technology Validation Fund in Cleveland will each receive $500,000 to invest in start-up companies with revolutionary new technologies.
"By awarding these grants, Ohio is extending its reach to up-and-coming companies and providing the capital necessary to build solid businesses that offer high-paying jobs to our citizens," said Taft.
Taft made the announcement on the heels of several recent successes regarding early-stage and venture capital investment in the State of Ohio. A recent Milken Institute study stated that between 2001 and 2003, Ohio led the nation in the relative growth of total venture capital invested in biotech. According to the study, Taft's Third Frontier Project was a catalyst in attracting biotech venture capital to Ohio. Taft also recently awarded more than $5 million in Third Frontier VFSFI grants to five funds throughout Ohio, which are expected to provide early-stage capital to more than 50 start-up companies.
Third Frontier Validation Fund and Seed Fund Initiative grants increase the availability of professionally managed capital and associated services that will accelerate the growth of early-stage Ohio technology companies. The additional 2005 Third Frontier Validation Fund and Seed Fund Initiative Award recipients are:
Children's Hospital Medical Center TOMORROW Fund (Cincinnati) received $500,000 and plans to invest in four to six spin-off opportunities. This new fund will provide start-up money to new Children's technologies that have the best potential to spin off into startup companies, and will complement the existing self-funded Children's program that provides an average of $50,000 per project to develop technologies that can be licensed.
2005 JumpStart Evergreen Technology Validation Fund (Cleveland) received $500,000 and plans to invest in 15 companies. Formed in 2003, JumpStart anticipates assisting 100 companies with their business development needs over the course of the project and plans to reinvest 100 percent of the returns from the Fund investments into additional pre-seed and seed companies.
"Already, $12 million in State of Ohio grants have helped leverage additional private investments of more than $145 million in 53 early-stage Ohio companies since 2000," said State Development Director Bruce Johnson. "By making additional early-stage capital available to Ohio-based funds, Ohio is supporting companies during their most critical stages of development and ensuring our place at the forefront of technological innovation."
Unveiled by Governor Taft in February 2002, the Third Frontier Project is a ten-year, $1.1 billion initiative to expand high-tech research capabilities, promote innovation, encourage company formation and create high-paying jobs in the State of Ohio. It is the State's largest-ever, technology-based economic development investment, awarding more than $235 million to Ohio-based companies, universities and research organizations to date.
