Entrepreneurs in Kentucky have an important resource in the Northern Kentucky ezone, a division of Northern Kentucky Tri-County Economic Development Corporation. Providing support programs for start-up businesses as well as early stage capital in the form of grants, loans, and equity investments through the Kentucky Enterprise Funds and the Kentucky Department of Commercialization and Innovation, the program has awarded more than $61 million in investments to over 150 companies since its inception in 2001.
"The best thing anyone who’s interested in starting a company in Northern Kentucky can do is start with the ezone," says Casey Barach, Vice President, Entrepreneurship, Northern Kentucky Tri-County Economic Development Corporation.
At a time when small companies are experiencing difficulty obtaining funding, the ezone can assist them in accessing grants and funding from the Commonwealth of Kentucky. How does someone get started? For many it’s as simple as a phone call.
“Don't be shy – I’m amazed how many people call and ask if they’re bothering me. I tell them this is what I get paid to do. And the services are free,” says Barach.
Barach admits there are some ideas and companies not ready for funding, but no one ever gets turned away. “We either place them in one of our programs or help them find where they need to go.”
ezone funding for fast-growth, high-tech companies comes in the form of assistance and mentorship in pulling together the necessary information and business plans necessary to apply for funds within a number of different categories.
“The ezone plays both an internal and an external role,” says Barach in explaining how the organization works with both entrepreneurs and investors from the community. “In working with companies, we apply a three-fold process of technology commercialization in which we assess the business, help create a business plan and then go after capitalization."
For entrepreneurs that qualify, Barach says there are a number of programs that can help get a company going, including: The Kentucky Enterprise Fund, Rural Innovation Fund and Kentucky New Energy Ventures Fund. These serve as seed stage capital funds geared towards early stage commercialization of a technology-based product or process.
“Traditionally these programs are designed for early stages of development including seed money of say $30,000,” says Barach.
The Kentucky Department of Commercialization and Innovation is geared towards specifically funding high-tech firms looking to get started.
This category includes matching funds from the state which can be a significant helping hand. For many start-ups, raising the matching funds proves to be a challenge which is why the ezone’s third and newest category will play an important role over the next several years to future Northern Kentucky companies.
This last category includes angel capital, venture capital and traditional bank financing. Barach says that at the end of the day when all the hard work is done, capital is still one of the biggest obstacles to overcome, which is why the ezone put together a team last year with the aim to create the Northern Kentucky Angel Network Fund, similar to those found in Cincinnati, Louisville and Columbus.
“Assume an IT or life science company wants to get started. Usually they won’t get a traditional loan from the bank and they’ve already hit up their friends and family. Maybe they even got some government funding. We want to be able to connect them to a group of investors willing to help them to the next step.”
Barach is convinced this is the right direction even in a tight economy. He points out that recessions traditionally push entrepreneurs to take a chance and there are local investors willing to place their capital into solid business plans. “Part of the culture of the region is that investments drive entrepreneurship. And angel investors like local investments – they like to be able to drive by the company to make sure lights are on.”
The group will officially launch the Angel Network on April 30 with an informal meeting among organizers, angels and prospective companies. Tony Shipley, Chairman of Queen City Angels, Cincinnati’s investment group, will be on hand to speak about the importance of having this kind of initiative.
“The mission of the group is very simple – give investors a higher than normal rate of return and help build the economy through the growth of these new businesses."
A recent ezone success story lies in TiER1 Performance Solutions who received $99,982 in SBIR-STTR matching funds from the Kentucky Cabinet for Economic Development (KCED).
The Covington-based technology firm will apply the funds to R&D for "Accelerated Learning through Serious Game Technology," a project for the Department of Defense.
TiER1 is conducting this program with guidance from the KCED's Department of Commercialization and Innovation (DCI).
"TiER1 is an innovative company with a unique and proven online training and learning solution," says DCI Commissioner Deborah Clayton. "We are pleased to partner with the ezone in providing SBIR-STTR matching funds to a Northern Kentucky-based technology company."
"TiER1 has received tremendous support from the Northern Kentucky ezone, where our company started in 2002,” says Kevin Moore, TiER1's Founding Partner and Chief Learning Officer. “Northern Kentucky is fostering high-technology companies in the ezone and the Commonwealth is supporting this important industry with funding through the Kentucky Science and Technology Corporation.”
To learn more about funding for Spring 2009, for which the deadline is May 7, visit here.
Writer: Kevin LeMaster and Jeff Syroney
Source: Casey Barach, Northern Kentucky ezone
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