knowledge economy development sustained, concerted action delivering improved per capita incomes and economic growth through technology
ANNUAL REPORT 2011
SC Launch is a private, not-for-profit SCRA affiliate and a key program of SCRA’s Technology Ventures division. It is a collaboration among SCRA and South Carolina’s university research foundations (Clemson University, the Medical University of South Carolina and the University of South Carolina). SC Launch supports the growth of the Knowledge Economy in South Carolina by:
Supporting the creation of knowledge-based companies and high wage-earning jobs
Assisting early-stage companies commercialize their products and services
Helping turn intellectual property from research universities and commercial markets into innovative technologies
Promoting industries that contribute to growing technology clusters in the state
Facilitating the relocation of technology companies to the state
helps grow knowledge-based businesses, commercialize new technologies and create new jobs in South Carolina.
Measures of Success Early-stage Company Formation and Growth SC Launch has supported the growth of many new technology companies and helped diverse early-stage companies move products into the commercial market.
Development of Innovative Technologies SC Launch supported companies deliver novel technologies into commercial and federal markets. They contribute to South Carolina’s growing prominence in industries such as automotive, aerospace, alternative energy, bioscience and advanced materials.
Follow-on Funding of SC Launch-Supported Companies Many SC Launch companies have received follow-on funding from large, industrial-grade venture capitalists. This indicates that SC Launch chooses winning companies and that participation in the program gives companies credibility with private investors.
Creation of High Wage-Earning Jobs SC Launch support has created nearly 1,000 compensated jobs according to client company surveys. The average annual per capita wage of these knowledge-based jobs is approximately twice the state average.
Relocation of Technology Companies to South Carolina SC Launch helps attract and relocate companies wishing to benefit from South Carolina’s favorable business climate. These companies, including a battery-electric bus manufacturer, a medical diagnostics lab and several advanced materials companies act as anchors to evolving technology clusters within the state.
Commercialization of University Research Many SC Launch companies have commercialized intellectual property discovered and partially developed at Clemson University, MUSC and USC. Without SC Launch support many of these discoveries would have moved into the commercial market outside of the state. Taking these discoveries to market where they originate helps South Carolina retain top level talent and provides excellent career opportunities in the state.
SC Launch is a high-achieving program that continues to attain national and international recognition by experts in knowledge-based economic development.
By the Numbers
167,000,000 Dollars in follow-on capital secured by SC Launch Portfolio Companies
64,000 Average salary (in dollars) of the jobs created
357 Contributors to the Industry Partnership Fund
251 Entities have received funding
123 Entities currently receiving support services
51 Entities receiving portfolio investments
48 Innovation prizes awarded to inventors
39 SBIR/STTR matching grants awarded
32 Demonstration projects funded and executed
5 National and International Economic Development Awards
1 National Non-Profit of the Year Award from American Business Awards
START-UP INVESTMENTS
CareCam Innovations’ vision is for video to become the standard of health care documentation. SC Launch’s investment in CareCam helped the company move into a second round of beta testing for a commercial ready system. CharlestonPharma develops fully human antibodies for innovative therapeutic products used in cancer patients. They have received funding from SC Launch and currently lease space in the SCRA MUSC Charleston Innovation Center.
Emerging companies must meet qualifications to receive SC Launch support. After careful scrutiny to determine that they qualify and show a high potential for sustainability, companies may receive investments. The discipline necessary to progress within the SC Launch program better positions start-up companies to seek funding from angel and venture capital sources. The SC Launch Portfolio Companies have been able to secure over $167 million in private, follow-on funding. With the appropriate support and investment, technology-based companies in South Carolina can bring tremendous economic returns to the state. SC Launch typically invests in the second or third round of seed financing after investments by company principals, friends and family. After receiving SC Launch investments,
early-stage investments investments made in the early stages of company growth, a crucial time when many entrepreneurial companies with promising intellectual property need initial external support
companies often receive funding from angel investors and venture capital firms.
universities and emerging technology clusters within the state.
Evaluation of candidate companies and due diligence are performed by the SC Launch staff. Successful completion of due diligence is a necessary condition for investment.
The Board determines whether to invest and amounts to offer based on availability of funds, potential risk and return, relative merit of candidate companies and other guidelines.
The SC Launch Board selects the best opportunities and directs available funding for maximum benefit to the state’s knowledge economy. It gives priority to opportunities closely aligned with enabling legislation, focus areas of South Carolina’s research
Desirable characteristics of investment candidates include, but are not limited to:
Rapidly expanding or new emerging markets
Innovative technology that can be commercialized
Durable intellectual property protection
Persuasive strategy that has a strong, sustainable competitive advantage
Viable business plan with compelling but realistic growth
Capable people and management who can execute effectively
High potential to attract private follow-on funding
Reasonable valuation and potential for financial return
Since its 2006 inception,
SC Launch has helped over 250 enterprises form and grow in South Carolina.
KNOWLEDGE-BASED INVESTMENTS Since 2006, SC Launch has generated and directed more than $59 million to support the growth and commercialization of technology companies. This includes $12 million of SCRA’s retained earnings that were used to establish the SC Launch economic development program, $17 million of balance sheet assets which were used to design and build three Innovation Centers for research and commercialization and an annual fund of $6 million in taxincented private donations each year.
SC Launch investments are targeted to advance South Carolina’s leadership position in growth industries such as automotive, aerospace, alternative energy, bioscience and advanced materials.
SC Launch support of early-stage technology companies goes beyond financial investments. SC Launch portfolio managers are seasoned commercialization experts that guide new companies as they develop and execute business plans. Companies must pass a rigorous qualification process to receive SC Launch funding. This helps them focus their business models and positions them to seek more substantial funding. SC Launch portfolio equity clients have secured over $167 million in private follow-on investments.
investment the expenditure of time, money or other resources in order to create a successful future
SC Launch investments help companies grow and succeed by providing a wide range of commercialization services, such as:
business and risk reduction expertise
access to a Resource Network of business professionals providing services such as banking, accounting, legal counsel, advertising and marketing
pre‐production testing
market research
materials studies
accounting services
patent search and application
intellectual property protection
trade show attendance, equipment, travel and lodging
leasing of laboratory facilities
relocation costs
scale-up of manufacturing processes
licensing
seed funds for product roll‐out
molding/tooling
biomedical testing
FDA packaging design
entrepreneurial training
engineering drawings
purchase of equipment and supplies
legal work related to venture capital funding
product development and customization
business plan development
prototypes
Forbes recognized SC Launch for excellence in effective economic development. The program has helped form or land over 250 knowledgebased entities and nearly 1,000 new technology jobs with average annual salaries of $64,000.
In addition to early-stage funding, SC Launch
provides companies with mentoring, training and networking opportunities.
MATCHING FEDERAL FUNDING Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) are federal programs that fund small businesses with strong potential for technology commercialization. Agile Genomics, LLC develops state-of-the-art software that accelerates life science research and provides custom genomic analysis. Hoowaki uses molds with microstructured stainless steel surfaces to produce high-performance materials, such as superhydrophobic rubber. SBIR and SC Launch support helped Hoowaki obtain a patent, scale-up their current product and initiate R&D for new products.
SC Launch matches these SBIR/STTR Phase I investments. This increases the competitive position of South Carolina small businesses by attracting SBIR and STTR grants and helps them bridge the funding gap between the final Phase I payment and the first Phase II payment. The program has helped establish and grow high-quality, advanced technology firms in South Carolina, including: Cell & Tissue Systems has made significant progress towards development of a manufacturing process for regenerative medicine utilizing naturally occuring antifreeze proteins. Vortex Biotechnology Corporation is a drug discovery company developing new drugs for the treatment of cancer.
SBIR/STTR federal programs which help emerging small companies develop and commercialize innovative new technologies
FirstString Research, Inc. is a clinical stage biotechnology company, leading the translation of cell-cell communication and cell-cell contact/adhesion science into a pipeline of drugs and medical applications for scar prevention, inflammation reduction, wound healing and complex tissue regeneration. Doty Scientific, Inc. manufacturers magnetic resonance research instrumentation and is currently developing processes and equipment to efficiently recycle carbon dioxide into carbon-neutral transportation fuels.
Tetramer Technologies, LLC develops advanced polymers and composites materials for a wide array of applications in the areas of membranes, biorenewable based materials, optical polymers and nanocomposites. Hoowaki makes microstructured stainless steel, copper and aluminum tools that reduce sliding friction, lower drag along the surface and control surface tension. Bite Technologies develops innovative tools for people to self-monitor eating consumption. This product has appeared in national media including USA Today, CBS News and Time Magazine.
Agile Genomics, LLC is a bioinformatics company developing software with an emphasis on DNA and protein analysis tools. CarboNix, LLC developed a cleaning, disinfection and sterilization process that uses non-toxic, environmentallyfriendly solvents. Advanced Core Technologies, LLC develops Visual Supply Chain Assessment & Analysis Modules (VSAAM) to mitigate risk and forecast technology solutions. SchnellGen, Inc. is a drug discovery company that develops therapeutics to promote regeneration of tissue and organ function.
SC Launch matches Phase I SBIR/STTR funding. This
multiplies the benefit to recipient companies and increases the impact of federal funds.
LANDING PARTY SUPPORT Lab21’s decision to locate its US headquarters in South Carolina furthers medical diagnostic innovation and establishes new employment opportunities in the state. Alexium produces a reactive surface treatment for high performance products. They are expected to bring 200 new jobs to South Carolina in the next five years. SC Launch provided support to Spectra Analysis in its move to Greenville. This next-generation molecular analysis instrumentation company won the prestigious R&D 100 Award for a device that quickly and efficiently identifies the chemical compounds in mixtures.
SC Launch provides assistance, support and networking opportunities to technology companies relocating to South Carolina. SC Launch supports companies that complement and advance the state’s knowledge economy and create highpaying jobs. Established technology companies are critical to ecosystems where entrepreneurial companies can thrive. Lab21 is a personalized medicine diagnostic specialist providing molecular and viral diagnostics, pharmacogenetics and patient profiling tests to healthcare organizations, clinical laboratories and pharmaceutical companies. This unique combination adds value to early-stage drug development, clinical trials and regulatory processes in the pharmaceutical industry and helps healthcare providers treat and monitor patients. Alexium’s platform technology applies nanoscopic coatings onto a variety of surfaces or substrates to provide a wide range of effects including water repellency, oil repellency, flame retardancy and antimicrobial properties. Alexium is developing a number of technical fabric products for the US
landing party a company that establishes operations in a new location in order to take advantage of an environment supportive of business goals and revenue growth military as well as developing surface treatments for materials such as filters, composites and glass. Carbures LLC from Spain designs, engineers and manufacturers carbon fiber structures for defense, aerospace and automotive industries. They plan to bring 50 jobs to South Carolina in their new Greenville facility. Senex Biotechnology® develops therapeutic agents to effectively treat cancer, viral diseases and age-related diseases, such as Alzheimer’s, renal disease, atherosclerosis and arthritis. They target damage-inducible signal
transduction pathways involved in cellular aging. The company, led by recentlynamed USC Endowed Chair Dr. Igor Roninson and Dr. Lawrence Friedhoff, is currently conducting pre-clinical development of novel drugs that will block the tumorsupporting activities of stromal fibroblasts, increase the efficacy of existing anticancer drugs, inhibit the development of age-related diseases and stop the replication of HIV and other viruses. Pandoodle’s patented technologies provide turnkey setup and delivery of dynamically customized video through rapid insertion
of computer generated images. This enables a range of applications from inserting a local advertiser’s brand onto a soda can in a streaming film to putting a child into their own cartoon. Pandoodle relocated their offices from Silicon Valley to Columbia, South Carolina. Proterra is a battery-electric bus manufacturer and maker of the most fuel efficient transit bus on the planet. Proterra is the leading innovator of zero emission commercial vehicles and the first company to deliver a full-size transit vehicle that meets California’s Zero Emission Bus Rule.
SC Launch has helped 12 knowledge-based technology companies relocate to SC. These companies strengthen the local economy by
bringing new jobs and retaining and attracting top level talent to the area.
COMMERCIALIZING INNOVATION SC Launch companies bring innovative technologies to market. Commercialization of new technologies is key to the creation of high-quality jobs and economic prosperity. SC Launch companies work in partnership with clients in industry and government to develop and commercialize technologies that provide practical solutions to real-world problems.
MIT-RCF is revolutionizing the use of reclaimed carbon fiber materials. Carbon fibers reclaimed from F-18 stabilators were utilized in the 3-DEP™ process to create material that was molded into wheelhouse support parts for the Chevrolet Corvette.
MIT-RCF has developed a method of recycling and reusing carbon fiber. Fibers reclaimed from carbon-based components are used to manufacture complex-shaped performance parts at MIT-RCF’s 49,300 square foot facility in Lake City, South Carolina. MIT-RCF’s reclamation technology solves a critical problem for industries that use carbon products. Until now carbon has not been recyclable. It is detrimental to the environment if placed in landfills because it does not break down naturally. MIT-RCF clients and partners include companies such as BMW, General Motors and Boeing. The
innovation the creation of better products, processes or technologies that are accepted by markets and society; the useful application of invention company plans to employ 120 people within 5 years. Teludyne Tech Industries, Inc. delivers high-quality firearm technology. Teludyne’s product improves gun shot accuracy by 70 percent. The company has received favorable results from national ballistics tests at HP White laboratories. The product provides significant technological superiority and cost savings to the Department of Defense. SmartTruck develops groundbreaking tractor and trailer products to reduce aerodynamic drag and improve fuel efficiency for
the trucking industry. Their current products make long haul trucks nearly 20 percent more aerodynamic and improves fuel efficiency by over 10 percent. SmartTruck products can be used with new equipment or as a retrofit to existing equipment. EnviroMix is focused on delivering energy displacement solutions to the water and wastewater industry. The company designs and manufactures technology solutions which improve water quality and reduce energy consumption in critical areas of the treatment process. Utilizing
patented and proprietary technology, the company provides both equipment and process control solutions to enhance plant performance in the water and wastewater markets. Climax Global Energy has developed a process to convert non-recyclable waste plastics into a premium synthetic oil product that can be refined into clean diesel, high grade synthetic lubricants and commercial waxes. Climax Global Energy’s $5 million investment for a state-of-the-art plastics-to-oil facility is expected to bring 20 new jobs to Barnwell County, South Carolina.
SC Launch helps innovative companies commercialize novel technologies across a wide range of industries and disciplines.
BRIDGING THE FINANCING GAP
The Zipit® Enterprise Critical Messaging Solution™ was designed to replace outdated pagers with reliable, innovative technology. It seamlessly transitions from Verizon’s 3G network to Wi-Fi for maximum reliability. Proterra makes the most fuel efficient transit bus in the world. It is the first company to deliver a full-size transit vehicle that meets California’s Zero Emission Bus Rule.
SC Launch provides capital to companies that have not yet been able to secure industrial-grade funding. During this early stage in company growth, assistance is often required to continue the transition of intellectual property to market-ready technologies. SC Launch funding bridges the gap between friends and family funds and larger venture capital investments. Risk is minimized through careful assessment of candidate companies prior to investment. SC Launch challenges and assists companies as they develop business plans which increase their chances of success. Despite the fact that SC Launch has only been in operation since 2006, several client companies have already paid back the initial investment. Those returns are being used to help a new generation of emerging companies.
financing gap a critical time in the growth of new companies - after friends and family investments have been received and prior to the attainment of large-scale private investments Zipit Wireless develops wireless devices and infrastructure software. In 2006 Zipit sought assistance from SC Launch after several unsuccessful attempts to secure funding from venture capital firms. Seeing the company’s potential, SC Launch provided the funds necessary to allow founder Frank Greer to file patents and further develop the company’s business plans. This early support helped move Zipit to the next growth level. Zipit went on to acquire $11 million in venture funding from outside of South Carolina.
Zipit is now a thriving company. Zipit recently launched the Zipit® Enterprise Critical Messaging Solution™ product through an exclusive partnership with Verizon Wireless. Using the Verizon Wireless 3G network, this two-way paging system delivers a comprehensive solution addressing the needs of industries relying on critical communications. Verizon’s national sales force is helping take this new product to the commercial market. Proterra, maker of a zeroemission, fast-charge, battery-electric transit bus,
was supported by SC Launch when it established manufacturing operations in South Carolina. Based on the company’s ground breaking technology and strong indicators of growth potential, SC Launch and other key investors provided funding to help commercialize the company’s buses. Proterra currently manufactures vehicles in Greenville. Testing is underway to confirm the buses are compliant with federal safety regulations. This is the last step before Proterra’s buses will hit the commercial market.
SC Launch investments help bridge the financing gap,
enabling new companies to survive, grow and attract large-scale private investment funding.
ACCESS TO NEW MARKETS
SensorTech’s uniquely durable and formable conductive polymer sensors measure load, tension, pressure and vibration. They have many applications - from blast tests for helmets to medical devices and consumer electronic components. SC Launch qualified SensorTech to participate in an SCRA-led, federally-funded advanced materials program. The sensors were applied to prosthetics allowing socket fit to be adjusted for greater user comfort.
Federal government and nationallevel commercial markets offer growth opportunities for innovative earlystage technology providers. SC Launch helps client companies gain access to these markets. It is difficult for small entrepreneurial companies to enter and compete in the federal market because engagement requires specialized knowledge of federal contracts and requirements. SC Launch helps qualify companies as providers to federal contracts and guides companies as they develop working relationships with organizations such as the Departments of Defense, Energy and Homeland Security. SC Launch helped SensorTech qualify as a technology provider to the Department of Defense. SensorTech sensors
non-traditional technology sources early-stage or small technology companies that lack the experience and contracting capabilities necessary to enter and compete in the federal market
were applied to build better, more comfortable prosthetics as part of an SCRA-led advanced materials program. This innovative program won a Defense Manufacturing Technology (ManTech) Achievement Award at a recent Defense Manufacturing Conference. Many other SC Launchsupported companies deliver technologies relevant to federal clients. J2 Software Solutions builds data integration systems for homeland security projects.
The company also develops public safety software and technology for law enforcement agencies, jails and dispatch centers. Teludyne Tech develops technology that improves the accuracy of existing weapons through elimination of harmonic waves and rapidly dissipating heat. PanX Imaging Technology produces high resolution, wide field of-view, ‘as the eye sees it’ digital imaging solutions with security, military and surveillance applications.
LOGANEnergy Corporation is a clean power solutions company. The United States Army Corps of Engineers has contracted LOGANEnergy to deploy 19 fuel cell backup power systems at 9 different United States locations. The units will provide uninterruptable power supplies and will operate when there is a local electrical grid failure. Wave Sciences develops advanced forensic restoration, enhancement and analysis on computer, audio, image and video data.
SC Launch helps qualify companies to act as technology providers to federal clients. Qualifying companies may gain access to federal markets as contractors to SCRA-led, federally-funded applied research programs.
ENTREPRENEURIAL ECOSYSTEM SC Launch plays a key role in South Carolina’s entrepreneurial ecosystem. SC Launch support helped KIYATEC obtain wet lab space and hire a cell culture scientist. KIYATEC’s Multi-syringe Infuse/Withdraw Pump holds up to ten syringes. Users can define flow rates and select target volumes. KIYATEC’s innovative 3D cell culture platform yields more complete and relevant information than traditional 2D methods.
SC Launch partners with South Carolina’s research universities and organizations that share the vision and mission of building a robust sustainable knowledge economy in the state. Partners include the South Carolina Chamber of Commerce, the Knowledge Sector Council, NEXT, EngenuitySC, Clemson University International Center for Automotive Research (CU-ICAR) and many others. Early investments from SC Launch are often accompanied by or followed by investments from angel and venture sources including Nexus Medical, Meritus, Kleiner Perkins, Charleston Angel Partners, Piedmont Angel Network, Ariel Savannah Angel Partners, the Upstate Carolina Angel Network and Windspeed.
ecosystem of entrepreneurial support public and private entities working in concert to provide support that allows new companies to form and thrive
The KIYATEC story represents how SC Launch helps make connections and marshall resources to support entrepreneurial company growth. KIYATEC Inc. commercializes advanced three-dimensional (3D) cell culture plasticware and 3D cell-based assays. An early investment from SC Launch allowed the company to upfit new laboratory space located at the Greenville Hospital System’s ITOR – Institute
for Translational Oncology Research. The ITOR is a place where doctors, researchers and businesses pool their talents to develop new cancer treatments faster. The location gives KIYATEC access to healthcare providers, relationships with pharmaceutical companies and IRB approved use of tissue. KIYATEC recently launched four new products and secured a deal with Sigma Life Sciences to distribute their products.
The SC Launch Resource Network provides access to business, academic and economic development expertise. The SC Launch Resource Partners are seasoned professionals who provide basic business services such as banking, accounting, legal, insurance, advertising, human resources, IT and marketing. SC Launch companies also receive counseling, mentoring and training.
SC Launch works with business leaders, the state legislature and research universities to develop an ecosystem of entrepreneurial support.
R&D FACILITIES The SCRA MUSC Innovation Center is equipped with wet labs and offices where bioscience technologies are commercialized. Nitek, Inc. will manufacture deep UV light emitting diodes and lamps in an SCRA USC Innovation Center industrial clean room. Immedion, one of the Southeast’s fastest growing data center, cloud and managed services providers, occupies 17,000 square feet within the SCRA USC Innovation Center. At the Duke Energy Innovation Center, SensorTech’s advanced, any-shape, any-size sensors are applied in prosthetics to increase user comfort.
SCRA Innovation Centers are a sustaining component of South Carolina’s Knowledge Economy. These offices and laboratory spaces accelerate the commercialization of research discoveries. The SCRA MUSC Innovation Center is a component of the growing bio-based cluster in Charleston, South Carolina. The Center supports the sophisticated requirements of earlystage companies to mature bioscience corporations. The 28,400 square foot facility consists of flexible use, multi-tenant laboratory and office space fully-equipped for bioscience research and commercialization. The SCRA USC Innovation Center in Columbia supports research and advanced, high-tech manufacturing operations with a large economic and low environmental impact. The facility houses companies emerging from the University of South Carolina and entering commercialization and scale-up manufacturing stages. It is designed to stimulate and sustain clean, next-generation manufacturing.
commercialization facilities spaces specially designed and built for the introduction of new products or production methods into the market
SCRA, Clemson and Duke Energy collaborated on the building of the Duke Energy Innovation Center. This LEED Certified, Gold Rated ‘green’ facility fully utilizes environmentally-conscious, best-practice design and manufacturing techniques in keeping with its advanced materials research focus. The Duke Energy Innovation Center houses SCRA’s
advanced materials applied research operations and state-of-the-art secure rooms for sensitive work. The design of this Innovation Center was recognized in the Outstanding Specialized Facilities category of the American School & University Magazine’s 2011 Architectural Portfolio.
SC Launch-supported companies enjoy priority access to SCRA’s Innovation Centers. SC Launch client companies housed at the Centers include: Bridge to Life, CharlestonPharma, MitoChem Therapeutics, MitoHealth, NextGenEn, Nitek, Neurological Testing Services, Iverson Genetics and VaxyGen.
SCRA’s Research Parks and Innovation Centers are critical infrastructure for the Knowledge Economy,
where research becomes solutions and intellectual property becomes useful technologies.
BEYOND SC LAUNCH
SC Launch supported the formation of Immunologix, a company commercializing a safer, more reliable, less expensive and faster method of producing human antibodies. Technology development took place in the SCRA MUSC Innovation Center in Charleston. The company was recently acquired by Intrexon and expanded their lab operations in the Innovation Center.
A major indicator of success for the SC Launch program is how well companies perform after they have received assistance. SC Launch carefully chooses companies for investment, which is reflected in the successes client companies attain. Sabal Medical developed and produced automated nursing medication carts and barcode verification software that ensures the right medication is administered to patients. The company relocated from Seattle to Charleston, South Carolina to have access to a broader marketplace. Through a partnership with Greenville Hospital System and with the help of SC Launch’s investment, Sabal was able to continue product
follow-on funding funding from private equity and venture capital sources; an indication that a company has credibility as a sound investment
development and complete a commercial prototype. The following year, Sabal received backing from an international investment syndicate led by Nexus Medical Partners, using equity capital from South Carolina’s Venture Capital Investment Act and Medicis Capital GmbH of Munich. Sabal was acquired in 2011 by Swisslog, a Switzerlandbased provider of logistics solutions for hospitals, warehouses and distribution centers. This allowed Sabal
to pay back the SC Launch investment and to expand it’s operations in South Carolina. Immunologix was formed to commercialize research discoveries from the Medical University of South Carolina. SC Launch invested in the early-stage company and Immunologix set up operations in the offices and wet labs of the SCRA MUSC Innovation Center. Immunologix developed a groundbreaking technology that produces fully-human antibodies. Based on the
market potential for this technology, Immunologix was acquired by bioscience industry leader Intrexon and expanded their operations within the Charleston facility. As SC Launch-supported companies grow and succeed they generate investment returns to the SC Launch program. Incremental capital generated by returns is fed back into the program and reserved for investment in new emerging companies.
Acquiring follow-on funding is a key measure of success for SC Launch-supported start-up companies.
To date, SC Launch Portfolio Companies have secured over $167 million in follow-on funding from private investors.
AWARDS and RECOGNITION SC Launch has been recognized by organizations such as the Southern Growth Policies Conference, Forbes, the International Economic Development Council and the American Business Awards.
The SC Launch team is pictured here with the Stevie Award. Pictured from left: Mark Housley, Lori Mack, Greg Clark, Dave McNamara, Martin Ettlemyer, Greg Hillman and Derek Willis.
The American Business Awards’ Stevie Awards recognize the achievements of organizations and business people worldwide. Based on a review of the SC Launch program, SCRA received a Stevie Award for National Nonprofit of the Year. The Award recognized SCRA’s leadership in collaborative, entrepreneurial economic development. The SC Launch program was recognized by Forbes as one of the top five economic development programs in the nation. Forbes stated that the program’s efforts attract angel and venture investment which serves to strengthen the area’s entrepreneurial ecosystem.
accolade acknowledgement of the production of positive outcomes; praise in recognition of substantive results
SC Launch’s success in identifying high caliber companies for investment is validated by the awards and recognition SC Launch client companies have attained. PinPoint GeoTech LLC was twice recognized by the National League of Cities for its municipal data collection and task management system. More than 60 organizations across the country use the technology to improve efficiency, decrease risk and reduce costs. They have now released adaptations for Disaster Management and Campus Security.
CareCam Innovations was named Innovator of the Year at The InnoVision Technology Awards. SensorTech tied for top honors in the Technology Development Award category. The program recognizes and honors Upstate individuals, businesses and organizations that have demonstrated significant advancements in innovation and technological progress. iTekka Inc was recognized by the Information Technology Council (ITC) with two Palmetto Pillar Awards for
best Start-up Venture and best Licensed IT Product. The Palmetto Pillar Award recognizes professionals and companies using technology in the Greater Midlands region of South Carolina. Hoowaki was selected by the Society of Manufacturing Engineers for Innovations that Could Change the Way You Manufacture. The award was presented for Hoowaki’s surface engineering technology that increases energy efficiency by improving friction, fluid drag and heat transfer.
Based on a review of SC Launch, SCRA was named
Nonprofit Organization of the Year by the 2011 American Business Awards for leading entrepreneurial economic development.
FINANCIAL PERFORMANCE SC Launch funds are carefully invested to generate many favorable outcomes for client companies and the state of South Carolina. On a consistent basis, SC Launch program operations have been lean and efficient, assuring that most program funds directly support the growth of the Knowledge Economy.
SC Launch investments are primarily focused on growing technology sectors within the state. These geographically clustered growth industries are a foundation of SC’s Knowledge Economy.
SC Launch’s ability to generate a high return-on-investment has been recognized by the International Economic Development Council, Forbes and the American Business Awards. SC Launch was started in 2006 using $12 million of SCRA’s retained earnings. The Industry Partnership Fund was created by the state legislature to sustain South Carolina’s Knowledge Economy development beyond SCRA’s initial investment. Contributions support the commercialization of university
SC Launch targets investments for maximum benefit to South Carolina. Life Sciences Defense Energy Advanced Materials Automotive/Transportation Chemical/Engineering Information Technology
judicious investment carefully considered expenditure of funds and resources in the interest of generating strong returns and job creation
$9 M $8 M
5% 8%
$7 M
7%
27%
16% 9%
12%
$6 M
7% 14%
$5 M $4 M
Sources and Uses of SC Launch Funds Program Returns/Reserve
84%
81%
73%
87%
91%
79%
Industry Partners Contributions Program Operations
$3 M
Mandated Support Services
$2 M
Direct to Entrepreneurs $1 M $0 FY09 Sources
FY09 Uses
research and general market intellectual property, finance start-up and spinout companies, and provide incubation and business services.
FY10 Sources
FY10 Uses
FY11 Sources
FY11 Uses
Certain services are mandated by the state. They include: market research, intellectual property protection, finance, management and business
practices, relevant science and technology, industry research partner recruitment and other support designed to advise and assist new company growth.
Since its 2006 inception, SC Launch has
invested program resources effectively to generate an impressive slate of outcomes.
‘s Complementary Missions SC Launch is an affiliate of SCRA, a South Carolina-based research and commercialization company. In addition to South Carolina-based economic development, SCRA leads federallyfunded applied research programs and builds and manages R&D facilities. The complementary and mutually beneficial connections between these competencies make SCRA an ecosystem of opportunity to SC Launch client companies.
Helping innovative companies grow, develop new technologies and create jobs SCRA Technology Ventures is dedicated to growing the Knowledge Economy in South Carolina. SC Launch is the flagship program of this SCRA division.
Delivering high-ROI technology solutions to federal and corporate clients SCRA Applied R&D leads teams from many industries and organizations to develop technology solutions to complex challenges. Qualifying SC Launch-supported companies may gain access to new markets through SCRA-led applied research programs.
Building and managing business, manufacturing, laboratory and research facilities SCRA R&D Facilities builds Innovation Centers where innovators develop and commercialize new technologies. SC Launch companies enjoy priority access to these facilities.
knowledge economy development sustained, concerted action delivering improved per capita incomes and economic growth through technology
early-stage investments landing party support bridging the financing gap commercializing innovation non-traditional technology sourcing ecosystem of entrepreneurial support commercialization facilities SBIR/STTR matches
SC Launch delivers a full spectrum of knowledge-based business support.
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