I have the privilege of working with a phenomenal team of experienced entrepreneurs and business people at TechColumbus. Much of our work involves coaching and mentoring entrepreneurs, helping existing companies apply for and plan for grants, commercialize new products etc. A portion of our work entails helping companies prepare for and obtain funding. Our efforts are having an impact on the Central Ohio economy, and frankly, I'm proud of that. The article below highlights some of the funding activity in Central Ohio, and some of these companies may go on to be funded by the Ohio TechAngels and/or local/out of state venture capital.
This article first appeared in TechColumbus' TechWeek newsletter and can be found on our website.
Fourteen Startups Receive More than $1.5M in Funding Through TechStart Program in FY 2010
September 9, 2010
TechColumbus has released a recap of all funding awarded through its TechStart program for the fiscal year 2010. In total 14 Central Ohio startups received $1,540,000.00 to help accelerate their growth and achieve the next level of business development. The TechStart program is funded in part by the Ohio Third Frontier and helps to create, finance and launch new tech companies in Central Ohio.
“Working with these companies on a daily basis, we are encouraged by their progress, which is attracting investment and creating high-wage jobs in the region.” – Ted Ford
Central Ohio healthcare and IT software companies dominated TechStart investments during the past year. Healthcare and IT software companies received a majority of total investments in fiscal 2010, a sign of the strength of those sectors in the Central Ohio economy. Other sectors in which investments were made included advanced materials, retail and consumer businesses.In addition, 2010 saw a substantial increase in technologies available for commercialization through large, regional medical and educational institutions. Nearly half of the companies receiving investments in the past year – including Arlington Products, BioAerogel, EndoRetics, IR Diagnostyx, Nanofiber Solutions – involved technologies developed by The Ohio State University, Nationwide Children’s Hospital and OhioHealth.“The high number of companies created from innovations in Central Ohio’s leading institutions is a testament to the collaboration and momentum taking place in the region,” said Ted Ford, president and CEO of TechColumbus. “These institutions are involved in advanced research so it’s no surprise that they are the source of such promising innovations. We look forward to continued work with them and with all of our partners in the future.”
In fiscal year 2010, 11 seed stage companies received grants from TechGenesis, which provides investments of up to $50,000 for business idea and commercialization research, as well as product prototyping. In addition, three companies received investments from the TechColumbus Pre-Seed Fund, which provides substantial funding for companies that have the potential to reach $30 million in revenue in three to seven years and address a market of at least $100 million. These companies also have the ability to attract follow-on capital.
“During the past year, many promising Central Ohio start-ups have made advances in their markets,” added Ford. “Working with these companies on a daily basis, we are encouraged by their progress, which is attracting investment and creating high-wage jobs in the region.”
The Ohio Third Frontier Program and 17 local governments, institutions and companies help fund TechStart. In May 2010, the Ohio Third Frontier program was extended through 2015 via voter referendum with a 62 percent statewide approval rating.Since its inception, TechColumbus has invested $14.8 million in 84 companies. These companies have generated $261.7 million in revenues and have created 1,013 jobs with an average salary of $65,749.