Third Frontier to fine-tune giving; High-tech program awards millions in grants
BYLINE: Mary Vanac, Plain Dealer Reporter
The Third Frontier Commission and its advisory board are considering focusing on specific technologies as they decide how to continue to develop the state's high-tech economy.
Since beginning operations in 2002, the Third Frontier program has invested in research and commercialization efforts in five broad industries: bioscience, advanced energy, power and propulsion, advanced materials, and instruments, controls and electronics.
Now the commission might zero in on certain technologies within those industries, such as fuel cells and medical imaging - both of which have strong presences in Northeast Ohio. The idea would be to create flexible programs that provide money for projects, talent, equipment and facilities.
Ohio Department of Development officials proposed the rethinking at a Third Frontier meeting Wednesday in Columbus. Lt. Gov. Lee Fisher, who also is head of the department, asked commission and advisory board members to offer feedback on the proposal.
The proposed new approach will be debated at a June 19 meeting.
Also Wednesday, the commission voted to award a total of
$4 million to two pre-seed investment funds in Northeast Ohio.
The 2007 JumpStart Pre-Seed Fund, run by Cleveland venture developer JumpStart Inc., will receive the $2 million it requested.
North Coast Angel Fund, also of Cleveland, also will receive $2 million.
The Tomorrow Fund, run by Children's Hospital Medical Center in Cincinnati, will receive
$1 million of the $2 million it requested.
"We are very excited about continuing our partnership with the state and the Third Frontier project with today's pre-seed grant award," said JumpStart Chief Executive Ray Leach, who attended the meeting.
Said Leach: "This $2 million, along with the additional
$1 million in non-state funding match required for this grant for a total of $3 million, will enable JumpStart to continue to assist and invest in entrepreneurs and opportunities that have the promise to play a major role in the transformation of the northeastern Ohio economy."
The Third Frontier Commission awards pre-seed money to funds that invest in companies to move their technology through the imagining, incubating and demonstrating stages of the commercialization process.
Funds that won pre-seed money from Third Frontier in the past, such as JumpStart's, got extra points during the current funding round, said Steve Berger of BizLogx, the Columbus sales and marketing consulting company that scored the pre-seed grant proposals.
However, receiving past pre-seed awards under Third Frontier's Entrepreneurial Signature Program made it more difficult for applicants to receive money in the latest funding round, Berger said.
JumpStart and the North Coast Angel Fund have both received Entrepreneurial Signature Program money in the past.
A fourth pre-seed funding applicant, Glengary LLC, which also has received ESP money, was not recommended by BizLogx to receive the $2 million in pre-seed money it requested.
"We'll be back," said Steve Haynes, Glengary managing director and co-founder who also attended Wednesday's meeting. "We firmly believe in our program," which is different from other pre-seed programs, he said.
Glengary has an office at Baldwin-Wallace College in Berea.
The Third Frontier Commission also awarded $2 million in commercialization grants to six companies, including ZIN Technologies in Brook Park. ZIN will receive $344,513 to commercialize a wireless system that remotely monitors patient biometrics, such as blood pressure.
Cornerstone Research in Dayton will receive a commercialization grant of $350,000; Frontier Technology Inc. in Beavercreek, a grant of $349,812; NexTech Materials Ltd. in Lewis Center, $350,000; MetaMateria in Columbus, $350,000; and Hyper Tech Research Inc., also in Columbus, $350,000.
The commission awarded a $1 million Targeted Industry Attraction Program grant to Zyvex Performance Materials Inc. Zyvex will use the money partly to locate its headquarters and manufacturing plant in Columbus. Zyvex, which is a spin-off from Zyvex Corp. of Texas, develops nanotechnology-related tools and instruments for semiconductor and research markets.
To reach this Plain Dealer reporter: mvanac@plaind.com, 216-999-5302