SBIR/STTR program supports technology development in the commonwealth
FRANKFORT, Ky. (Feb. 6, 2025) – Today, Gov. Andy Beshear announced that seven innovative Kentucky companies will receive nearly $750,000 in state matching grants to support high-paying jobs and further grow the state’s technology sector.
The $749,964 in grants are part of the commonwealth’s nationally recognized Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) matching funds program. The funds will match, in part, $4.69 million in federal grants the businesses will collectively receive.
“Creating an economy that remains successful in the future starts with the initiatives we are taking today that will ensure Kentucky remains competitive in the innovation and technology sectors,” said Gov. Beshear. “This program allows us to invest in the resources that these startup tech companies need to succeed and create high-wage jobs for Kentuckians across the state. I am thrilled to see what the future holds for these companies as they continue to thrive here in the commonwealth.”
The seven Kentucky-based businesses awarded matching funds are using technology to advance multiple fields, from health care and cybersecurity technology to ride-sharing improvements for individuals with disabilities. Recipient companies include:
3P Technologies Inc. (Louisville)
3P Technologies is developing a technology to use cow colostrum exosomes for targeted delivery of healthy compounds to the brain in order to mitigate neuroinflammatory diseases such as Alzheimer’s Disease. The use of the exosomes for delivery of drugs is an innovative concept pioneered in their lab.
Covert Defenses LLC (Lexington)
Covert Defenses developed the Covert Cognizance technology, which enables zero-downtime operation of industrial control systems even if compromised by cyberattacks with insider assistance. The technology finds dual-use applications in oil & gas pipelines, manufacturing, microgrids, etc., as well as drones, tactical assault kits and software-defined radio.
WiLO Networks Inc. (Lexington)
WiLO Networks Inc. is a senior development company centered around the development and deployment of a cutting-edge sensor network platform designed to operate with exceptionally low power consumption. The proposed research aims to tackle the challenge of maintaining continuous, reliable sensor communication in environments where power resources are limited or costly to replace.
VRTogether (Louisville)
VRTogether is developing Virtual PARTNER (Provide, Activate, Restore, Track, iNspire, Educate, Rehabilitate), a noninvasive, nonpharmacological VR application designed to address gaps in delirium management and prevention while minimizing staff burden. The overall goal with Virtual PARTNER is to deliver a clinically validated and regulatory-compliant delirium intervention that transitions with ICU patients from hospital bed to at-home recovery.
Wild Dog Physics LLC (Louisville)
Health care disparities in the United States result in large segments of the population without access to radiation therapy. Wild Dog Physics proposes to design and test a new-generation quality assurance device that addresses these unmet medical needs. When successful, this important innovation will help to bring accurate, state-of-the-art radiation therapy treatments to patients who might otherwise not receive them.
New Global Systems for Intelligent Transportation Management Corp. (Paducah)
New Global Systems is developing a platform to meet the challenges of ride sharing with individuals in rural locations and individuals with disabilities. The platform and unique algorithm will create real-time tracking, route optimization and dynamic pricing to ensure trips are cost efficient, reliable and accessible.
PCC Hydrogen Inc. (Louisville)
PCC Hydrogen (PCCH2) has developed a patented process to produce hydrogen from ethanol with net negative carbon dioxide. The project will fund the scale-up of the company’s core reactor, an integral component of its hydrogen production process. In concert with PCCH2’s SBIR Phase II grant and building on the considerable progress supported by Kentucky’s matching award, the company is developing commercial hydrogen ecosystems fueled by hydrogen from PCCH2’s distributed hydrogen production plants.
Kentucky’s SBIR/STTR program, overseen by KY Innovation, provides critical nondilutive capital for promising early-stage tech companies by matching all or part of federal SBIR/STTR awards received by Kentucky-based businesses or companies committed to relocating to the state.
“The matching funds award is an important complement to federal funding that is largely limited to technical development activities,” said Tim Fogarty, founder of PPC Hydrogen Inc. “To achieve commercial success, customer engagement and business development is required. Funding for those commercial development activities can be difficult to come by. Thanks to the matching funds award, companies like ours can undertake the necessary business development activities to accelerate commercial adoption and increase the likelihood of success.”
To date, Kentucky SBIR/STTR-awarded companies have leveraged the state’s matching program to receive $4.78 in federal or private capital for every $1 in state funds. These businesses also have created more than 766 well-paying jobs, 88% of which have annual salaries over $50,000. Match recipients have 235 patents and generated more than $108 million in sales and licensing revenue. Kentucky has made 337 match awards to 153 unique companies since the program’s inception, leveraging $166.76 million in federal funding coming into the state.
“Kentucky’s SBIR matching funds program was the first of its kind in the nation and continues to set us apart as a state committed to fostering high-tech, high-impact innovation,” said David Brock, interim executive director of KY Innovation. “This was one of the most competitive funding rounds in quite some time, which is a testament to both the awardees and the overall quantity and quality of promising technology-based companies across our state. We congratulate all of them and look forward to their success and growth in Kentucky.”
More information on Kentucky’s SBIR/STTR matching funds program and awarded companies awarded is available at kyinnovation.com/sbir.
The SBIR/STTR-awarded companies investment and job creation build on the best five-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,100 private-sector new-location and expansion projects totaling over $35 billion in announced investments, creating more than 60,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $14 billion more than the next highest total.
The robust job creation has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and Shelbyville Battery Manufacturing’s $712 million investment creating 1,572 jobs in Shelby County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Last March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear announced a Supply Kentucky initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies. And in November, the Governor announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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