Four Kentucky-based tech companies are receiving more than $449,000 in state matching grants to promote the growth of high-paying jobs, according to a news release from the office of Kentucky Gov. Andy Beshear.
The grant funding — $449,819, to be exact — comes from the state’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Matching Funds Program. The funding will partly match $1.9 million in federal grants that the four businesses will receive.
“The SBIR-STTR Matching Funds Program allows the commonwealth to continue fostering innovation and growth for our startups and tech industry,” said Gov. Beshear in the release. “These companies are tackling the issues of tomorrow, today and finding unique ways to make the world we live in a better place. Kentucky is home to a great ecosystem of startup companies that are creating well-paying jobs, and I am excited to see everything that these companies achieve here in the commonwealth.”
Monique Kuykendoll Quarterman, executive director of KY Innovation, has long been a champion of spreading awareness of the SBIR/STTR programs. On Wednesday, she talked about the role they play in helping fund the aspirations of Kentucky-based founders and companies when she was part of a Venture Connectors panel that focused on the collective journey of Black founders over the past four years in the commonwealth.
“These matching funds awardees are wonderful examples of the kinds of cutting-edge technologies supported by the federal SBIR/STTR program,” said Quarterman in the release. “SBIR/STTR is referred to as ‘America’s Seed Fund’ for good reason, providing vital capital for some of Kentucky’s most innovative, research-based technologies addressing some of the most important issues of our time. Kentucky’s matching funds allow more of those seedlings to take root and flourish in Kentucky. We congratulate the awardees, especially in what was an exceptionally competitive round.”
Here is a breakdown of the four chosen businesses, three of which are based in Lexington:
- BlackBox Energy Systems LLC (Owingsville): The startup is developing NEMo (Nautical Electric Motor), which is described as being a more efficient motor for an underwater training target. The company’s patented motor technology has proven to be more efficient across a wider range of power levels than traditional motors. In addition, it is smaller, lighter and uses up to 80% less copper to create the same level of power.
- Covert Defenses LLC (Lexington): The company’s latest project, Covert Cognizance (C2), focuses on the resilient and unimpeded operation of energy systems in the face of cyberthreats, ensuring that cyberthreats compromising business networks do not have a physical impact. C2 also oversees that the systems are well-suited for critical infrastructure that continues to provide life-critical services to millions of Americans.
- Lepidext Inc. (Lexington): The company is developing a revolutionary biopesticide for the reduction of the harmful pest corn earworm. The pesticide sterilizes the moth and causes a reduction in pest population. Its latest project is to develop fast and inexpensive field-ready detection to assess the sterilizing pesticide in corn earworm moths.
- Ralph VR Inc., doing business as VRTogether (Lexington): VRTogether is developing a digital therapeutic virtual reality tool to delay the onset and halt the progression of Alzheimer’s disease and Alzheimer’s disease-related dementias by empowering older adults to maintain social engagement, cognition and physical activity in fun and engaging activities from the comfort of their own home.
Kentucky’s SBIR/STTR program provides critical non-dilutive capital for promising early-stage tech companies by matching all or part of federal SBIR/STTR awards received by Kentucky-based businesses or companies committed to relocating to the state.
To date, Kentucky SBIR/STTR-awarded companies have been able to leverage the state’s matching program to receive $4.57 in federal or private capital for every $1 in state funds.
These businesses also have created more than 730 well-paying jobs, 89% of which have annual salaries over $50,000. Match recipients have 235 patents and generated more than $57.60 million in sales and licensing revenue.
Kentucky has made 324 match awards to 151 unique companies since the program’s inception, leveraging $157.4 million in federal funding coming into the state, per the release.
