Appalachian Ohio - Recent Business Developments

Recent Business Developments

The once manufacturing-heavy region was suffering after several factories closed in the area. Today, however, both state and private initiatives are helping the region to transform from the "rust belt" into a "tech-belt." As of late, measures have been put in place to encourage economic development in Appalachia Ohio. For example, increased access to capital has provided incentives for new companies to start up in the region. One of the largest rurally focused investment funds in the country is located here. The East Central Ohio Tech Angel Fund (ECOTAF) is a group of experienced investors that helps new and established companies by providing venture capital coupled with entrepreneurial support services. Working with business development entities in the region, ECOTAF provides assistance to Ohio entrepreneurs in: creating business plans, conducting market research, performing executive searches and preparing presentations for investors and bankers. These services help to make startups more attractive to other investors. After working with ECOTAF, several Appalachia-based startups received funding from angel investors outside of the state – and country. Since its inception, ECOTAF has helped raise $11 million for startup companies in Ohio’s Appalachian Region. TechGROWTH Ohio is another example of a resource for entrepreneurs in Appalachia Ohio. TechGROWTH Ohio connects early-stage, technologically-innovative companies with valuable tools for growth. The program focuses on four technology industries: digital interactive media, bio-sciences, bio-agriculture and advanced energy. The mission of TechGROWTH Ohio is to significantly increase revenue growth and capital investments in technology-based businesses within southeast Ohio. Funded by the Third Frontier Initiative – a $1.6 billion Ohio Department of Development project – it is a part of the Entrepreneurial Signature Program. TechGROWTH Ohio is located at the Voinovich School of Leadership and Public Affairs at Ohio University and works alongside many partners, including the Edison Biotechnology Institute, Ohio University’s Innovation Center, Adena Ventures, the Ohio State University South Centers and ECOTAF. Recently, a number of successful companies have sprung from the resource-rich Appalachian area. One example is Turning Technologies, which is the global leader of audience response systems. Essentially, the company develops software and designs hardware for customers polling and reporting needs. More than half of all U.S. colleges and universities use Turning Technologies' response systems on campus. Organizations including Hewlett Packard, Johnson & Johnson and the McDonald's Corporation are also using Turning for their response system needs. In 2007, Inc. Magazine ranked Turning as the fastest growing privately held software company in the U.S. Other examples of recent business success in Appalachia include Third Sun and Global Cooling. Third Sun, a solar and wind power company, is considered one of the fastest-growing companies in Ohio. Global Cooling, an innovative technology company providing energy-efficient, high performance cooling products to the scientific, medical, and electronics fields, was recently awarded $1.3 million by Third Frontier to further its growth and expansion.