Group gets $2.6 million to aid area tech firms
BYLINE: Shaheen Samavati, Plain Dealer Reporter
The state awarded a NorTech-led consortium $2.6 million Wednesday to help nurture new technology businesses in Northeast Ohio.
Last year, NorTech applied for about $15 million from the state's Entrepreneurial Signature Program, which is aimed at promoting and commercializing technology-based products in Ohio. But the Ohio Third Frontier Commission approved only $12.8 million of the request in November.
The remainder was fulfilled Wednesday after NorTech provided more information on how the money would be used. The $2.6 million was part of $26 million in grants the commission awarded statewide.
The consortium, made up of Northeast Ohio incubators and investment funds, will put $6 million toward firms that will invest in fledgling technology companies, said Chris Mather, vice president for entrepreneurship at NorTech.
The remaining $9 million will go toward services for entrepreneurs, including classes and expert coaching, he said.
"We've learned that coaching is one of the most beneficial things these entrepreneurs can get," Mather said.
Services are primarily offered to companies that have an existing relationship with the consortium, but Mather said he expects to start a public application process by fall.
NorTech's grant proposal was supported by $7.5 million in matching money from private sources. Mather said the consortium plans to apply for money from other sources as well.
"We have bigger ideas than $15 million will pay for," he said.
Separately, the Third Frontier Commission approved grants of about $1 million each to three Northeast Ohio companies for the advancement of fuel cell research.
They were Contained Energy Inc. of Shaker Heights, Wellman Products Group of Solon and Catacel Corp. of Garrettsville in Portage County.
All awards approved at Wednesday's meeting are pending final approval by the State Controlling Board, which oversees state money.
To reach this Plain Dealer reporter: ssamavat@plaind.com, 216-999-4331