In the latest round of awards, the Innovation Fund, administered by the Lorain County Community College Foundation, is investing $300,000 in six Northeast Ohio based technology start-up companies.  Funds from Ohio’s Third Frontier Program combined with matching local support and contributions from a variety of partners are used to make the Innovation Fund awards.  These partners and collaborators include: the Ohio Department of Development, the University of Akron, Youngstown State University, the Youngstown Business Incubator, the Great Lakes Innovation and Development Enterprise (GLIDE), JumpStart, Techlift and the Lorain County Commissioners.

The Innovation Fund advances the strategy to grow our own businesses and jobs in the region.  “In this our seventh round of funding, we continued to be impressed with depth and quality of entrepreneurial ideas that are emerging from our region,” noted Lorain County Community College President Dr. Roy A. Church.  “Including this round, the Fund has invested more than $2 million in 30 companies located in NE Ohio”

The Fund is seeding the development of new technology-based industries in Northeast Ohio that represent the jobs of the future.  The fund supports Ohio’s overall strategy for technology-based economic development as evidenced by the Ohio Department of Development strategic plan.  These Innovation Fund awards help to fill the funding need for businesses that are at the earliest stage of development, the difficult point in a business’s growth before they are mature enough to attract angel investors and venture capitalists.

There are two types of awards within the Innovation Fund: the first is a grant of up to $25,000 to help validate the technology; and the second is a pre-seed grant of up to $100,000, which requires a one-to-one match, and is designed to help validate the business concept.

The six Innovation Fund Awards announced today are:

TheraVasc - Cleveland, Ohio - $100,000

• TheraVasc is developing a business based on new novel therapies for peripheral artery disease (PAD),a chronic disorder associated with reduced blood flow to the extremities that affects millions of people across the world.

Absorbent Materials Co. - Wooster, Ohio - $100,000

• Absorbent Materials is developing a new class of patent-protected, organosilica glass polymers called OSORB - which instantaneously swells to greater than three times its dry volume in non-polar solvents. As a result, it shows great promise as the material to clean hydrocarbon-contaminated groundwater and also to remediate toxic waste.

BizVeo - Youngstown, Ohio - $25,000

• BizVeo is developing a web based education and training tool that utilizes streaming video accompanied with competency based testing.

Rapid Charge Technologies - Cleveland, Ohio - $25,000

• Rapid Charge Technologies will further develop and commercialize rapid charging technology for lead acid batteries that is based on patented technology created and tested at the University of Georgia Technology. This technology holds the promise of allowing lead acid batteries to be charged in minutes, not hours, and dramatically extend battery life.

Citizen Groove - Cleveland, Ohio - $25,000

• Citizen Groove is developing an innovative, patent-pending, digital music organization system to first enhance all artists networking capabilities, second, to create an easy-to-use music discovery engine for music listeners, and third, to enable the aggregation and supply of critical music market data to industry professionals.

Sooth, Inc. - Beachwood, Ohio - $25,000

• Sooth isdeveloping technology that automates computer network management to provide a less costly, more stable and secure network.

About the LCCC Foundation Innovation Fund

Contributions to the Innovation Fund are fully tax deductible as a result of a landmark ruling by the IRS.  Realizing the potential risks to a foundation’s tax-exempt status for supporting incubator activities, the LCCC Foundation submitted a special request to the IRS seeking permission to accept charitable contributions that would be used for the purposes of the Innovation Fund.  In January of 2006, the LCCC Foundation received a positive ruling, a groundbreaking decision applicable only to the LCCC Foundation and is the only one of its kind in the nation.

To date the Innovation Fund has received generous support from a variety of partners and the local community.  In 2007, the State of Ohio made a major investment of $400,000 through the Ohio Third Frontier Entrepreneurial Support Program.  Additional investments were made by the State: in 2008 in the amount of $500,000; in 2009 in the amount of $1.5 million.  The Third Frontier Project is the state’s largest-ever commitment to expanding Ohio’s high-tech research capabilities and promoting innovation and company formation that will create high-paying jobs for generations to come.

The Innovation Fund focuses on technology opportunities in Ohio’s five high growth industries.  It is a regional fund, providing support across Northeast Ohio’s 21 counties to help great technology ideas develop into viable businesses and thus create jobs in the region.

Recipients of Innovation Fund awards agree to provide an educational experience in entrepreneurship for a student - allowing the student to walk side by side with the entrepreneur without taking on the risk.

The application process for the Innovation Fund is completely web-based.  Applicants are able to submit an application through the fund’s website.  Upon submission, GLIDE and its regional partners representing a network of industry experts, entrepreneurs and investors employ a thorough due diligence process to assess both the technology and the business potential.

For more information about the LCCC Foundation Innovation Fund or to apply, please visit www.lorainccc.edu/if