Nearly $3.5 Million Invested in Kentucky Technology Companies and University Research

July 7, 2004

Funding to Support Kentucky’s New Economy Initiatives

On July 2, Governor Ernie Fletcher announced that the State has invested $3,497,637 in Kentucky technology companies and university and small business research programs. This is the latest round of awards issued by the Kentucky Science and Technology Corporation (KSTC) with funding provided by the Commonwealth through the Council on Postsecondary Education in support of Kentucky’s New Economy. All projects undergo rigorous peer review and due diligence and fall within the state’s five priority research focus areas: biosciences, environmental technologies, human health, information technology, and materials science and advanced manufacturing.

“We must ensure that Kentucky is competitive in the New Economy by providing the funding necessary to create jobs and opportunity here in the Commonwealth,” stated Governor Ernie Fletcher. “It is essential that Kentucky enhance itself in the global market by providing an economic climate that stimulates growth and entrepreneurial innovation. These awards will foster an environment that encourages economic development and promotes Kentucky’s standing in the Knowledge Economy.”

This includes new awards totaling $1.8 million to 38 technology start-up companies, including 22 from rural areas, under the various investment funds managed by The Innovation Group at KSTC. The Commercialization Investment Fund (CIF) is a series of state sponsored seed capital investment funds focused on early stage technologies in Kentucky and filling the gap between founder’s and angel/venture capital. The funded CIF projects range in diversity from the development of new pharmaceuticals derived from tobacco plants to medical devices. Investment amounts range from $7,500 to $200,000 and come from the Rural Innovation Fund, Kentucky Commercialization Fund, and R&D Voucher Fund. Lists of all of the portfolio companies and information about the Commercialization Investment Funds can be found at www.startupkentucky.com or contact Jim Clifton (859.233.3502 ext 229; jclifton@kstc.com).

Another $1.7 million was awarded to 31 university and small business researchers for projects sponsored by the Kentucky Science and Engineering Foundation (KSEF) under the Research and Development Excellence Program. The awards range from $15,000 to explore emerging ideas -- up to $100,000 for taking advanced research to the next stage of discovery on the way to developing new technologies and commercial applications. Faculty researchers receiving these competitive KSEF awards were from the University of Kentucky, University of Louisville, Western Kentucky University, Morehead State University and Murray State University. In addition, two small businesses, Triboflow Separations and ECM Biosciences, were selected for funding through this competitive process. Full details on KSEF programs and these and previous awards are available on-line at http://ksef.kstc.com or contact Mahendra Jain (859.233-3502 ext 230; mjain@kstc.com).

Since 2002:
The Commercialization Investment Fund has invested $6,097,924 in 132 projects by technology companies, created 29 new companies, and attracted nearly $10 million in additional investments from other sources. Under contract with the Commonwealth of Kentucky, TIG also manages the Innovation and Commercialization Centers (ICC), the only statewide business accelerator (www.kyicc.com), which has created 674 new jobs, assisted 17 companies to attract $12.5 million from angel investors, and conducted hundreds of financial planning and valuation workshops for individual companies.

The Kentucky Science and Engineering Foundation at KSTC has funded 134 university and small business research projects for $6,017,434, leveraged approximately $4 million matching in non-state funding, generated intellectual property leading to three dozen patent applications, made contact with some 5,000 national and international experts to review the quality of applications, with research generated 200 publications on the sponsored research.

For more information:

Jason Keller
Commonwealth of Kentucky
Governor Ernie Fletcher's Communications Office
jasonr.keller@ky.gov

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