Companies get boost

Money from last year’s stimulus package has been awarded to six Weber State University projects. A total of $800,000 is going toward supporting the growth and development of Utah start-up companies. To date, there has been $189,000 awarded with more planned for the end of March.
In September 2009 a total of 10 Utah companies received grant awards from Utah Science Technology and Research (USTAR), which is a state technology outreach program, and sponsored state schools. Of the 10 grant winners, six were WSU related companies.  One of the companies is called Pressure Products, which makes a leak-proof hydration system bite valve. 
“The amount was perfect, and to get someone supporting us to get bits and pieces realized,” said Toby Hazelbaker from Pressure Products about the bite valve. “We had enough to have some simple stuff made, but now it can be done professionally.”
The bite valve development is part of a hydration system that proposes to pressurize personal water supplies. It resembles something like a Camelback water pouch, but is pressurized so that water is pushed out rather than sucked out. This will make drinking much easier when a user is out of breath. Other awarded grants include synthetic saliva, concrete coatings and a wireless aviation headset.
“It’s good that the money could go to new entrepreneurs,” said Hailee Lucas, a marketing major in the John B. Goddard School of Business. These grants are critical to young companies that have innovative ideas, but lack the access to funds due to the downturn in the economy. Each company is awarded around $30,000 with the understanding that the funds are to be paid back after one million in revenue is reached. These kinds of grants are also called “evergreen funds” because future companies can also use the money to grow, create jobs and generate tax revenue within the state.
“I could use it to market my business and gain a broader market share,” Lucas said. These grants are funding WSU companies at a crucial time when they are looking to finish their development and enter a market. Each grant winner is required to have a university professor sponsor their project and half of the WSU grant-awarded companies have student involvement. This creates opportunity for WSU students to bridge the gap between the classroom and the real world, while also leveraging the education and experience from state higher learning institutions.
“It’s cool that President Obama promised stimulus money would be used at the discretion of the states to be used as they saw fit, and Utah decided to use that money in this way,” said Matt Peterson, a recent graduate from WSU with his own start-up. WSU is not the only university in which funds from the American Recovery and Reinvestment Act (ARRA) will be funneled through. Other schools that are supplying companies applying for Technology Commercialization Grants or TCG’s are College of Eastern Utah, Dixie State College, Salt Lake Community College, Snow College, Southern Utah University and Utah State University. Each applicant requires a university professor to sponsor the application with a commitment to assist in the development of the particular innovation.
“It’s nice to have the state come in and support us,” Hazelbaker said about the TCG grants. Hazelbaker also encourages other start-ups to apply because of the higher degree of quality and support he gets through the local schools. The next round of TCG applications will be due March 31 and open to Utah-based companies. The grant money goes to the state institutions for funding things like market research and test products, i.e. the bite valve for Pressure Products. The funds are awarded to the most promising opportunity regardless of where it comes from. To apply for one of these grants visit www.innovationUTAH.com/TCGGrants.html.