Growing Business

Innovation & Commercialization

Demonstration Fund

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, 2010, 61 applications were received by the department for the Iowa Demonstration Fund of which 42 awards were made.

“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.

Bioasphalt® developed at Iowa State University

Avello Bioenergy, Inc.

Avello® Bioenergy was formed to commercialize proprietary technology developed at Iowa State University. Avello has transformed conventional biomass fast pyrolysis products into low cost and profitable feedstocks for renewable energy, chemical and material applications. Avello can produce fuel, asphalt additives, and biobased chemicals from the bio-oil while the biochar can be used for soil enhancement and sequestration of greenhouse gas emissions. One of the uses of the bio-oil is a replacement for petroleum-based asphalt materials. Demonstration Fund dollars were instrumental in producing this bioasphalt. Iowa’s transportation department is already putting the company’s bioasphalt chemicals to use for a bike path test.

Advanced Law Enforcement Technology

ASTRUM LLC

ASTRUM LLC, based in Des Moines, received a $150,000 Iowa Demonstration Fund Award from the board to market and receive product certification for their product STARS (Structural Tactical Acoustic Receiver and Sender). STARS combines intelligence gathering and wireless communication capabilities for use by civilian law enforcement. The system is designed to provide increased intelligence to law enforcement personnel with minimal risk of detection, which is believed then to provide greater safety to officers and hostages. ASTRUM has conducted additional development work since receiving the award to further upgrade the performance of STARS because of a recent technical breakthrough/discovery by their engineers and expect to begin marketing and have product ready for delivery by the end of 2nd quarter 2011.

Coupler innovation in Carlisle

Gilmore Manufacturing Inc.

Gilmore Manufacturing Inc. of Carlisle was awarded $150,000 from the Iowa Demonstration Fund for a marketing campaign and product demonstrations of a new device for construction equipment. Gilmore's Tool Link® coupler allows a quick exchange of tools on excavator equipment.

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.

During FY ’10, the Networking Fund supported 34 events with over 3,000 attendees. Discussions at these events explored industry partnerships, service provider and industry links, sales leads, university and industry links, and other subjects. Below are comments from two networking event organizers:

"There are very few outlets for Iowa entrepreneurs to make connections and increase meaningful collaboration. The Targeted Networking Fund has given the EDC opportunities to foster the networking that is vital for cultivating innovation and business growth in Iowa. At such events, entrepreneurs have made connections with investors and other technical partners critical to the advancement of their businesses."

– Josie Heskje, VP of Marketing, Entrepreneurial Development Center

"The IDED Targeted Industries Networking Fund has proven to be a critical component in building successful, innovative events in the past year. Too often professionals get stuck in silos based on their industries or occupations (researcher, investor, founder, etc.) and don't network to create positive deal-flow. It often takes unique, new events in order to break these silos down and work toward new ventures and further growth. The Targeted Industries Networking Fund provides the support to overcome that risk and launch these new events. So far we have had an overwhelmingly positive survey response to our events and have witnessed new partnerships and even a few funded deals come to fruition."

– Alexander Grgurich, Director, Foundry Coworking