Dave Rizzo, head of economic development group NC IDEA and venture capital firm IDEA Fund Partners, is always on the lookout for deals. From grants to investments, Rizzo and his team track startups across the state looking for good deals. These days, the hunting is better than ever.

After making a near-record amount of grants to five startups earlier this week, Rizzo talked with WRALTechWire about the state of business.

The $220,000 announced Thursday is the biggest round of grants NC IDEA has awarded across the last several years. The group, which is a non-profit, awarded $225,000 in one round of grants in 2006. Startups across the state – some 77 in all – have received nearly $3 million in grants since the NC IDEA program launched seven years ago.

The concept for NC IDEA was to provide funding to bridge the so-called “valley of death,” helping startups grow to the stage that outside investors might become more interested. The grants are non-dilutive for the company owners are are intended to help accelerate business growth.

Our conversation:

This is the second highest amount ever awarded by NC IDEA – is there a particular reason why this group received more collectively than other groups?

No. We look at each company individually, assess their needs and then try to grant the appropriate needed funds up to $50,000.

It was just circumstance that in this cycle their were greater needs.

How would you describe the “deal flow” and in what areas is it strongest?

Surprisingly, at least to me, I thought that our deal flow would taper off after a number of cycles once pent up demand had been satisfied.

As usual I was wrong.

We continue to get on average 130 to 150 applicants per cycle and in some cycles even more.

Additionally, the quality of the applicants has increased dramatically in the last couple of years. So I would say deal flow is better than it has ever been.

You mentioned the grant process is growing increasingly competitive. What are the key reasons for that – more startups looking for alternative funding? Increasing awareness of your program? A tighter VC market? More and better entrepreneurs with better ideas?

Well, I do think there is more awareness of what we do. But, I think the real reason is the entrepreneurs are more prepared to apply.

With increased mentoring and programs such as Triangle Start Up Factory and Groundworks Labs a lot of energy and resources are being applied to assist the entrepreneur “tell their story”.

As a result, the quality of the applications is at its highest level ever.

[Note: Groundworks Labs is a mentoring program launched by NC IDEA. Both it and the Startup Factory, which provides $50,000 in initial funding to selected firms, are based adjacent to each other in The American Underground at the American Tobacco Historic District.]

You also noted in the grant announcement that more companies from outside the Triangle and Charlotte as being competitive. What are the factors driving that improvement?

I think its twofold.

First, other communities are placing more emphasis on entrepreneurs.

Secondly, we have done a number of roadshows across the state over the last couple of years to increase awareness.

Are Startup Factory and other accelerators helping bring more entrepreneurs into the startup realm?

I don’t think I would say that accelerators are creating more entrepreneurs. Rather, I think they are creating better prepared entrepreneurs.

The quality and sophistication of the entrepreneur who graduates from these programs is significantly improved.

[Note: Appearing with this post are links to each NC IDEA round of grants dating back to 2006.]