Entrepreneurial activity thrives where there is an
abundance of capital - Silicon Valley, San Diego, and
Boston provide strong case studies to this point.
Beyond a handful of notable examples, the nation is
not awash in capital for start-up enterprises. Ohio is
on a deliberate path to become one of the notable
places with sufficient investment capital to support the
creation and growth of technology-based companies,
especially in the technology fields that are the focus of
the Ohio Third Frontier.
One such field is biomedical, and we have recent
evidence of progress toward our goal related to
the availability of investment capital. Ohio recently
ranked second in the Midwest for dollars attracted for
healthcare start-ups by the Midwest Health Care Venture
Report 2008, assembled by the Mid-America Healthcare
Investors Network and BioEnterprise. This ranking is a
direct result of the number of biomedical companies
receiving the investment capital that enables them to
grow and succeed in Ohio.
One such company is Minimally
Invasive Devices. Wayne Poll is a
Columbus physician who has first-hand
knowledge of the limitations of medical
devices used in laparoscopic surgery. To
overcome these limitations, he formed
Minimally Invasive Devices in 2006
to develop and market new medical instruments,
including a disposable device to clean and defog
laparoscopic surgical tools while they are being used
during surgery. The early-stage medical enterprise has
received $2.4 million in angel capital, a portion of which
came from funds supported by the Ohio Third Frontier.
There are many other examples like Minimally
Invasive Devices where the robust ecosystem that the
Ohio Third Frontier is helping create has supported
technology start-ups in Ohio with world-class research,
entrepreneurial business services, a growing pool of
talent, and a pipeline of capital to take those companies
from creation to market entry.
Cincinnati-based AssureRx is a personalized medicine
company dedicated to helping physicians determine
the right drug at the right dose for individual patients
suffering from a range of medical conditions.
The company was founded in 2006 to license and
commercialize personalized medicine technology
discovered at Cincinnati Children's Hospital Medical
Center. AssureRx's creation would not have been
possible without the entrepreneurial services and $3
million in local seed capital received from Ohio Third
Frontier-supported resources.
Arteriocyte Medical Systems, Inc. began life as a
start-up biomedical company with products based
on stem-cell therapies developed by the Ohio Third
Frontier-funded Center For Stem Cell and Regenerative
Medicine in Cleveland. To move these technologies
through preclinical and clinical trials, Arteriocyte raised
$3.8 million in seed funding and development grants,
including significant direct support from the Ohio Third
Frontier. This early investment put Arteriocyte on a
rapid growth curve. In 2008, the company attracted
a $10 million growth capital investment from outside
of Ohio, enabling the company to market novel stem cell products to improve patient outcomes in cardiac, orthopedic and vascular surgeries.The goal of investment capital and entrepreneurial services to Ohio's small biotech companies is to position them for major growth and job creation. HTP, Inc., a healthcare information company in Columbus is a prime example. HTP received entrepreneurial assistance from an Edison Incubator and capital from an Edison Center and Ohio Third Frontier-supported angel capital fund totaling $2.5 million. As a result of HTP's early success, the company was recently purchased by health giant McKesson Medical-Surgical for what was likely a multi-million dollar deal (purchase details not disclosed publicly). This strategic partnership provides a major growth path for HTP and its current 65 employees in Columbus.
While the spotlight of this article is on biomedical companies, the investments made by the Ohio Third Frontier in entrepreneurial assistance and early-stage capital have put Ohio on the path to similar success in other industries important to our state's future including advanced energy and materials. Capital is the life-blood of commerce, and being a leader in the formation and attraction of capital makes Ohio a desirable final destination for the growth of new companies and new industries that will shape and change Ohio's future economy.
