Second Highest Total in State
TOLEDO, Ohio – The development of an entrepreneurial technology environment in northwest Ohio received an unprecedented boost today when the Ohio Department of Development awarded the region an $11.8 million state grant.
Northwest Ohio received the second highest award in the state for the Entrepreneurial Signature Program (ESP) grant, handed out by the State of Ohio’s Third Frontier Commission. The Regional Growth Partnership (RGP), which served as the lead applicant for the grant, had requested $15 million, the maximum amount allowed, in its proposal last month. Of the six proposals to the state, only northeast Ohio received more funding.
The state matching grant is created to provide funding to significantly increase technology-based entrepreneurial commercialization outcomes. It is intended to primarily serve early-stage start-ups and small entrepreneurial companies.
“This award is fantastic news for northwest Ohio, and it provides affirmation from an independent third party of our region’s ability to deliver on technology-based economic development,” said Bill Brennan, president of the Associated General Contractors of Northwest Ohio, and chairman of the RGP Board of Directors.
The ESP grant was issued under the Third Frontier Project, the state’s largest-ever commitment to expanding Ohio’s high-tech research capabilities, promoting technology commercialization and innovation, creating technology-based businesses and creating high-paying jobs.
“This grant will help us diversify our economy through the growth and successful development of promising technology-based enterprises,” said Steve Weathers, president and CEO of the RGP.
Part of that $11.8 million award includes $6 million to capitalize a pre-seed fund, investing in 32 to 38 companies, primarily focused in the signature areas of Advanced Materials and Agbiosciences. Advanced materials is focused around the region’s national leadership in thin films materials, but also includes polymers, nanomaterials and other structured materials. Agbioscience supports business in the food production industry, food manufacturing/processing industry and agricultural biofuels.
In order to deliver services under this program, the RGP will create an organization, “Rocket Ventures,” whose sole focus will be to execute the plan. Rocket Ventures will provide an average of 200 pro-bono hours of management and entrepreneurial services to each of its portfolio companies in concert with investments of $50,000 to $600,000 per company through the pre-seed fund.
Regional businesses and organizations demonstrated their support for the program by committing a 50 percent match to the state money ($5.9 million), including strong support from the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers.
“Community leaders have recognized the need to embrace a technology-driven economy, and obtaining funding to initiate ESP better positions northwest Ohio as a progressive region actively supporting innovation and commercialization,” said Todd Michaelsen, manager of the NECA Ohio/Michigan chapter.
The Regional Growth Partnership is a private nonprofit development corporation dedicated to fostering local, national and international economic growth opportunities for Northwest Ohio.