Cleveland’s innovation network has generated a nationally recognized biomedical start-up environment, with companies and product lines acquired by such firms as Medtronic, Integra, GE Healthcare, St. Jude Medical and Greatbatch.

Biomedical companies looking to fund and grow their business in Cleveland can access a large number of area investors, including seed funds, angel funds and networks, venture capital and growth equity funds, and State support. State Support is available through the Ohio Third Frontier initiative, the Innovation Ohio Loan Fund, and the Ohio Capital Fund.

Ohio Third Frontier (OTF) – This $2.3 billion initiative supports applied research and commercialization, entrepreneurial assistance, early-stage capital formation, and expansion of a skilled talent pool.

Since 2002, nearly 100 diverse biomedical projects have been funded by OTF. During 2009-2010, 30 new biomedical projects were funded, totaling $84 million and matched by more than $118 million in corporate funding.

In June 2010, Philips Healthcare announced a new medical imaging research and development center at University Hospitals Case Medical Center in Cleveland, amounting to a $33.4 million investment. This project is supported by an additional $5 million from the OTF.

In 2010, OTF also supported innovative biomedical research and commercialization projects submitted by many other Cleveland companies including Quality Electrodynamics, Athersys, OrthoHelix, and CardioInsight Technologies.

For more information, see: http://www.development.ohio.gov/ohiothirdfrontier/

Innovation Ohio Loan Fund (IOLF) – This fund was created through OTF to help existing Ohio companies develop next-generation products and services by financing the acquisition, construction and related costs of technology, facilities and equipment. The IOLF can finance up to 75 percent of a project’s allowable costs to a maximum of $2 million and a minimum of $500,000.

For example, Cleveland’s Checkpoint Surgical, LLC was recently awarded more than $1 million from the IOLF for a seven-year term. The loan will be used for software, intellectual property and machinery and equipment. Checkpoint develops advanced devices to locate, evaluate and protect neuromuscular function in surgery.
 
For more information, see: http://www.development.ohio.gov/ohiothirdfrontier/InnovationOhioLoanFund.htm

The Ohio Capital Fund – The Fund was established by the State of Ohio’s Venture Capital Authority (OVCA) to increase the amount of private investment capital for Ohio companies in the seed or early stage of business development. It is a “fund of funds,” investing in venture capital funds that have targeted Ohio early stage companies as part of their investment strategy.

To date, the Ohio Capital Fund has obtained $150 million in commitments from private resources for investment in qualified venture capital funds.

The Fund’s portfolio includes underlying funds managed by the following venture capital funds located or in Cleveland: Arboretum Ventures II, L.P.; Bridge Investment Fund, L.P.; Early State Partners, Fund II, L.P.; Primus Capital Fund VI, L.P.; Radius Ventures II, L.P.; and RiverVest Venture Fund II, L.P.

For more information, see: http://www.theohiocapitalfund.com/currentinvestments.asp