Innovation Fund North Carolina has wrapped up its first round of awards to early stage companies and the numbers look good as North Carolina gains a second major source for capital. 

The new program awarded $275,000 in grants and loans to seven North Carolina startups. IFNC received 89 inquiries and 59 total applications.

“That was actually a little more than we were expecting,” said IFNC Executive Director Tony Mifsud.

IFNC is part of a demonstration project called Innovation Fund America, sponsored by the Ewing Marion Kauffman Foundation. The project enables community colleges to provide earliest seed-stage capital to startups. Catawba Valley Community College was chosen as one of only three community colleges from around the country to participate in the project. IFNC is based on the the Lorain County Community College Foundation in northeast Ohio that started in 2007.

Mifsud said that applicants for funding were judged on their technology, their business and their management. Companies were also scored on additional items within those three categories. Winners will be recognized at a Dec. 17 reception and dinner in Conover.

The IFNC awards represent one of the few opportunities in the state for early stage companies to apply for funding. Mifsud said that while the ability to access capital can vary depending on the stage of the business, it’s hardest at the earliest stages.

“The pre-seed (stage) is extremely difficult, that’s the area we’re in,” Mifsud said. “If you go around the state, there’s maybe a couple of places you can get those kinds of funds. One of them is us. The risk is significantly higher. That’s why you don’t see many people in it.”

Durham-based NC IDEA fund also offers grants to early stage companies. Mifsud said NC IDEA award recipients are a little further along than the companies that IFNC is targeting. Some applicants who applied to NC IDEA and did not receive funding were directed to IFNC.

“There’s back and forth in trying to do what’s best for the entrepreneur,” Mifsud said.

NC IDEA Voices Support

NC IDEA President and CEO Dave Rizzo welcomes the additional funding opportunities offered by the Innovation Fund.

“I absolutely don’t view the Innovation Fund as competition but rather as a vehicle to help get more swings at the plate,” Rizzo said. “In that regard I’m really excited about it.”

Innovation Fund North Carolina’s second cycle of funding starts in January and companies can start submitting applications on Jan. 1 until the close of that round on Feb. 7. Companies that applied in the first round but did not win are welcome to apply again in the second round.

Grant recipients in the first round were awarded $25,000 each. Loan recipients received $75,000. More details on the companies follow.

The Breakdown

Grants recipients:

  • 10 for Humanity The Clayton company says it wants to be a champion for “those who have been the victim, or attempted victim, of any form of crime – from robbery to rape.” 10 for Humanity aims to develop 10 technologies to reduce violence globally within 10 years. The company’s first product is the Tiger Eye Security Sensor, or TESS. TESS is a hands-free, wearable sensor. When it detects voice stress it alerts police to the wearer’s location. TESS also records audio of the events to aid in identification and apprehension of the perpetrators.
  • AccuFlow Imaging Accuflow has developed a blood flow imaging and measurement device that can measure blood flow anywhere in the body that is in line of sight. The Raleigh company says the primary use of the device will be during heart bypass surgery. It will also be used to confirm the return of optimal blood flow to the heart during and after surgery.
  • Advanced Hydrogen Power Technologies The Lenoir company is commercializing a non-explosive welding (NEXW) technology, a method for producing impact bonded joints between similar and dissimilar metals and materials. The company says that this method cost effective and environmentally friendly compared to explosive welding. Advanced Hydrogen Power has a portfolio of patents for the technology and has designed a portable bonding machine that will allow bonding to be done on site to large structures.
  • VX Aerospace Founded by two aerospace engineers, VX Aerospace is a composites manufacturing company. The company works with advanced composites to make aerospace parts for helicopters and other aircraft. The Morganton company is led by CEO and Chief Engineer Robert Skillen, who has more than 25 years experience in commercial and defense manufacturing and construction positions.
  • White Stagg Charlotte-based White Stagg is developing a device that provides homes and businesses with critical weather information. It’s easy-to-install modular weather warning device is designed to integrates with existing emergency alert systems.

Receiving loans were:

  • Creisoft The Charlotte company is developing cloud-based software for commercial real estate. The software connects commercial real estate brokers and investors to offering materials, transaction documents and analysis tools all in one place.
  • GO2  The Wilmington company, founded by retired orthopedic surgeon Dr. James Huntley, has developed a device that increases blood circulation without significantly changing the body’s vital signs. The company is now marketing the device, called the CV2. It’s intended for people who have limited mobility, a sedentary lifestyle, people who want to improve their general wellness, and athletes looking for help recovering from injury.