The Demonstration Fund provides grants and loans to accelerate commercialization of products by companies in targeted industries of bioscience, advanced manufacturing and information technology. The purpose of the fund is to encourage commercialization of innovation thereby fostering competitive, profitable companies that create high paying jobs and wealth in Iowa. An eligible business must be an Iowa-based company developing a unique and competitive product, technology or process that can be protected in the marketplace. Applicants must demonstrate the commercial viability of their technology and must demonstrate their ability to develop and lead a commercially successful venture. As of June 30, 2009, applications were received from 30 companies and 23 awards were made to this group.

“We may not have been here if it were not for the Demonstration fund and the confidence it brought to our team – especially in this economic down-turn.”
Mark Lockwood, Labstrong, LLC, Dubuque

Here are of examples of companies receiving financial support.

Energy efficient innovative product cited for achievement

Prism Projection, LLC Sully (Garrett Young)

Prism Projection’s founder Garrett Young accepted the award for Best Debuting Product for Lighting at the LDI 2009 Trade Show in Florida. Unveiled for the first time was the RevEAL line of fixtures manufactured in Sully, Iowa, where Prism has assembled a world-class collection of engineering talent. “The demonstration fund award has given us the opportunity to commercialized a broad portfolio of proven energy efficient technology for entertainment and architectural lighting. The capital costs of manufacturing tooling and the overhead increase from additional resources would have been difficult to manage without the assistance of Iowa Department of Economic Development.” Prism is moving full speed ahead and we expect to complete the introduction of this revolutionary family of products in Q4 of 2009.

Cancer therapy product developed

Terpenoid Therapeutics, Inc. Dr. Jeffery Neighbors

Terpenoid Therapeutics, Inc., is a drug discovery and development company focused on innovative drugs for cancer, osteoporosis and other diseases. Terpenoid is based on technology discovered by the founders which is being licensed from the University of Iowa Research Foundation. The Company is located in the University of Iowa BioVentures Center in Coralville. Terpenoid’s initial Demonstration Fund grant was funded in December 2008. This grant supports a portion of the Company’s work on a new class of chemical compounds which have the potential to be used in the treatment of multiple kinds of cancer. Terpenoid’s proprietary compounds inhibit a specific enzyme (geranylgeranyl diphosphate synthase) that appears to be critical for the growth some human cancer cells. The Demonstration Fund grant has supported further testing of one compound to assess its potential to be a drug for the treatment of cancer, including making more of the compound, testing its activity against human breast cancer, leukemia and myeloma cell lines in the laboratory, and measuring the distribution of the compound in the blood of animals. Terpenoid has closed on Series A (private investment) funding in December 2009.

Networking Fund

The targeted industries Networking Fund provides financial assistance to support networking events for individuals in the advanced manufacturing, bioscience and information technology fields. The goal of the program is to create an environment where idea exchange can lead to new opportunities and deal flow within these important Iowa sectors. Sponsors of networking events bring together any combination of entrepreneurs, established companies, venture capitalists and members of the academic research community to discuss new technologies, key innovations, resources and other needs of the event attendees. Networking events must include a substantive topic for discussion and a planned format with an agenda. Awards of up to $5,000 are available for a single event and may be used for speaker fees, event marketing and collateral material, facility rentals or other project expenses with no match required.

Networking Fund Success Story

Startup Weekend Des Moines was a community event that brought together highly motivated developers, designers, business managers, marketers, startup enthusiasts and others to pitch, create and launch new business ventures in just one weekend. The first of its kind in Iowa, Startup Weekend Des Moines, was a huge success with thirty-six participants. Four startups launched during the weekend, the most successful of which has been SparkNight (SparkNight.com), an on-line date planning service. Toy Bin Trader (ToyBinTrader.com), which allows parents and kids to trade or donate their used toys, is scheduled to launch in the spring of 2010.

According to event organizer Shane Reiser, "Startup Weekend Des Moines would not have been possible without the support of sponsors, the largest of which was the Iowa Department of Economic Development via the Networking Fund. Startup Weekend is just one example of the many wonderful events held each year in Des Moines that provide opportunities and resources to aspiring entrepreneurs. I'm pleased that IDED recognizes the importance of these events through programs such as the Networking Fund." Two Startup Weekends are being planned in Des Moines for 2010. Visit iowa.startupweekend.org for more details.