Governor Announces Third Frontier Pre-Seed Funds
COLUMBUS, OHIO (March 30, 2006) - Governor Bob Taft today announced four Third Frontier Project grants to create jobs and economic growth by supporting Ohio start-up companies to develop and introduce new products. Grant recipients will match State funds with privately raised capital and invest in early stage companies.
"These investments are critical to Ohio-based start-ups, and they show investors that the state is committed to cultivate the long-term success of high-tech companies," Taft said. "Ohio has a long history of innovation, and we'll continue to help and encourage entrepreneurs who grow their ideas into successful companies."
The Third Frontier Pre-Seed Initiative is designed to help fill the need for early-stage capital through the establishment of professionally managed, pre-seed capital investment funds to support promising Ohio start-up technology companies at the earliest stages.
The Initiative also prepares companies for seed-stage investment from angel, strategic or venture capital investors and requires each fund to provide its portfolio companies with technical and commercial assistance as well as enhanced management services to improve marketing and management.
"To date, this program has helped to create 450 jobs and draw down funding for 64 Ohio companies," said Lt. Governor Bruce Johnson, who serves as Director of Development for Ohio. "These strategic investments say, 'Ohio Means Business'."
The Third Frontier Commission awarded a total of $6.4 million in Pre-Seed Initiative grants, based on a competitive evaluation of the submitted proposals. Awards were approved for the following:
Jumpstart Inc., located in Cleveland (Cuyahoga County), was awarded $2,000,000 for its 2006 JumpStart Pre-Seed Fund, which will provide pre-seed stage investment capital in 10 to 12 imagining and/or incubating phase companies in Northeast Ohio. JumpStart is matching the State grant with an additional $1,000,000. Collaborators on this project include Bioenterprise Corporation, Ohio Polymer Strategy Council, the Ohio Agricultural Research & Development Center, The Cleveland Foundation and The John S. and James L. Knight Foundation.
NCT Fund Management, LLC, located in Columbus (Franklin County), was awarded $1,985,921 for its NCT Pre-Seed Initiative investment fund, which will support the formation and incubation of 10 to 15 Ohio pre-seed companies from the commercialization of the intellectual property that is created by The Ohio State University, the Children's Research Institute and other sources. Collaborators include: The Center for Entrepreneurship at The Ohio State University, Fisher College; Todd Seitz; Ed Cohn of Unizan Bank; Pat Norton; Deloitte & Touche LLP; Fahgrenmortine; Cappello Capital Corp.; Columbus Children's Research Institute; and The Entrepreneurship Steering Committee at the Columbus Chamber of Commerce.
The University of Cincinnati, located in Cincinnati (Hamilton County), was awarded $1,100,000 for its Southern Ohio Creates Companies Pre-Seed Fund project, which will invest in pre-revenue and low revenue, technology start-up companies with novel, enabling and potentially useful ideas across all high technology areas. Collaborators include: BIO/START; Blue Chip Venture Company, Ltd.; Ohio University; Fort Washington Capital Partners Group; and the Miami University Center for Innovation and Commercialization.
TechColumbus, located in Columbus (Franklin County), was awarded $1,500,000 for its TechColumbus Regional Commercialization Fund, which will provide pre-seed capital and professional management assistance to fuel the imaging and incubating phases of early stage technology-based business opportunities. Collaborators include SciTech of Columbus and Omeris of Columbus.
The 10-year, $1.6 billion Ohio Third Frontier Project is the state's largest-ever commitment to expand Ohio's high-tech research capabilities and promote start-up companies to create high-paying jobs for generations to come.
