IICorp achieved much in 2016, including an increase in SBIR/STTR applications and awards, an expansion of our network of public-private partnerships, and an enhanced portfolio program.

2016

ANNUALREPORT

We’re committed to the success of Iowa’s entrepreneurial environment.

The Iowa innovation community made major strides in 2016. For our part, Iowa Innovation Corporation (IICorp) remained focused on building strong, reliable, and consistent

relationships with clients and partners, while providing access to resources that help entrepreneurs succeed.

As IICorp immerses ourselves in activities that advance the state’s innovation economy, we continually see new ideas and witness exciting startups. In 2016, our outcomes included:

• An increase in SBIR/STTR applications and awards

• A broadened program for portfolio company oversight

• Expanded connections between research institutions, industry, mentors, partners, government bodies, private industry, private and venture capital, and the entrepreneurial community

• A continued partnership with the Iowa Economic Development Authority

IICorp is committed to the success of Iowa’s entrepreneurial environment. Our efforts last year established the base for implementing an aggressive action plan in 2017. Our five key areas of focus will be:

• SBIR/STTR outreach

• Statewide portfolio management

• New initiatives and operations

• Outreach and networking

• IIConnect

Our continued growth and our impact on the innovation community will be best measured by the partnerships we create and the industry sectors we can join forces with to provide resources to move these companies forward. We thank all our partners for their continued collaboration, and invite you to follow us on social media, sign up for our newsletter, and remain actively involved in the innovation community.

Dear Friends of IICorp,

-Kirk Bjorland, president and CEO

BOOSTING ADVANCED MANUFACTURINGIowa’s entrepreneurial forte might be coming from an unexpected sector: advanced manufacturing.

Advanced manufacturing—using innovative technologies to create or improve products and processes—now represents the largest industry contributor to Iowa’s GDP: $29 billion annually.

Because of the significant role advanced manufacturing plays in Iowa’s economy, it is vital to foster the sector’s long-term growth and success—a role that Iowa Innovation Corporation (IICorp) is helping fulfill.

In 2016, IICorp hired Axcel Innovation, LLC, to identify obstacles to the adoption of advanced manufacturing technologies, examine potential solutions, and create a detailed action plan.

Using the information, IICorp, its partners, and the Iowa Innovation Council’s advanced manufacturing workgroup have begun devising strategies to act on the Axcel recommendations. The goal is to create an “entrepreneurial ecosystem,” that gives advanced manufacturers access to essential resources and helps sustain or grow GDP.

STRENGTHENING THE ENTREPRENEURIAL ECOSYSTEMThe Entrepreneurial Investment Awards Program also fuels the state’s entrepreneurial ecosystem. Awards fund service providers that support emerging and early-stage innovation companies in Iowa.

The program’s intent is to strengthen the ecosystem so innovative startups can readily access what they need to launch, grow, and succeed. The service providers, along with IICorp, provide essential business referrals within the network so that new companies can connect with other entrepreneurs and access available resources.

IICorp administers the awards program on behalf of the Iowa Economic Development Authority, which provides all funding.

of Iowa’s GDP comes from advanced manufacturing.

$29 BILLION

IICORP’S EIA PARTNERS:• Gravitate• StartUp Factory• NIACC• Kitchen Council• IA Area Dev. Group• NewBoCo• Square One DSM

Monitoring and Promoting Long-term Success

Distribution of industries for IEDA portfolio

companies

Other

5%

11%

22%

25%

37%

Value-AddedAgriculture

Advanced Manufacturing

Biosciences

Information Technology

IICorp manages a portfolio of Iowa companies which have received awards from several state funding programs through the Iowa Economic Development Authority.

In October 2016, IICorp retained a dedicated portfolio manager to develop, implement, and maintain a standardized process for monitoring the progress of these companies. IICorp staff will continue to meet with the portfolio companies to identify ways to encourage their success.

Learn more about the IICorp portfolio at iicorp.com/programs.

ENTREPRENEURIAL PORTFOLIO• 235 companies• 280 awards• Over $30 million awarded

Getting Funding for Innovative TechnologiesThe IICorp-administered SBIR/STTR Outreach Program helps Iowa companies access a pool of $2.6 billion in grants and contracts from the Federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

FY 2016 was the first full year that IICorp had a full-time staff member dedicated to SBIR/STTR. During this time, 46 proposals were submitted—up from 8 proposals in FY 2015. These proposals resulted in $2.75 million in total funding across 11 companies.

INNOVAS TECHNOLOGIESCoralville, IA

innovastechnologies.com/products/automatic-tube-cleaning-system

$225,000 NSF Phase I and $25,000 in IICorp/IEDA Financial AssistanceInnovas Technologies is developing a mobile, submersible microsensor system that addresses fouling and failure in shell and tube heat exchangers. This technology aims to maximize exchanger efficiency and operating life by detecting tube failure, capturing unusual vibration signatures, and providing speed and temperature readings inside the exchanger. Innovas’ research will lead to products that may eliminate more than $40 billion in unnecessary waste in industrial heat exchangers.

Working with IICorp has been a pleasure. Its leadership has been instrumental to our success.”

-Chuck Dirks, president

IOTAMOTION, INC.Coralville, IA

iotamotion.com/technology

$225,000 NSF Phase I and $25,000 in IICorp/IEDA Financial AssistanceiotaMotion develops technologies that support hearing loss treatments and help people with cochlear implants hear better. The company is developing an enhancement for implants that enables remote, nonsurgical electrode repositioning to overcome post-surgical hearing loss. Its proprietary approach enhances natural hearing preservation and optimizes hearing quality over time.

IICorp significantly increased the quality of our application and enabled us to get an NSF Phase I SBIR award on our first submission.”

-Dr. Chris Kaufmann, president

GROSS-WEN TECHNOLOGIESAmes, IA

isustartupfactory.org/grosswentechnologies

$100,000 USDA Phase I and $25,000 in IICorp/IEDA Financial AssistanceGross-Wen Technologies Inc. (GWT) is commercializing an algal-based wastewater treatment process that recovers nutrients such as nitrogen and phosphorus from wastewater. The algae biomass produced can then be used as a slow-release algal fertilizer. Developed at ISU, the Revolving Algal Biofilm Treatment System has achieved over 10x higher treatment rates than conventional treatment systems.

The programs that IICorp offers give Iowa companies a huge advantage when commercializing innovative technologies like ours.”

–Martin Gross, cofounder

Technical and Financial Assistance

Federal Awards$0.32M$2.08M

$0.67M$2.75M

Phase II

Phase I

Federal AwardsTechnical andFinancial Assistance

Return Outreach Program InvestmentMillions of Dollars

Not AwardedTotal Submitted

FY2016 SBIR/STTR Proposal PerformanceNumber of Proposals

NationalAverage

Awarded

46 35

1124%

76%

+49%16%

Jordan Hobfoll, Statewide SBIR/ STTR Program Coordinator

Laura Stein, Vice President

Kirk Bjorland, President and CEO

Jenica Johnson, Statewide Innovation Portfolio Manager

Kayla Burkett, Administrative Assistant

BOA

RD O

F D

IREC

TORS Sarah Hasken, Chair

Georgia Van Gundy, Sec’y/Treasurer

Kathryn Kunert

Myron Linn

Joy Grosser

Brad Epperly

David Kingland

Debi Durham

Dr. Michael Crum

Robert Riley Jr.

Chris Nelson

Randy Pilkington

Peter Hong

EX-O

FFIC

IO

IICO

RP S

TAFF

505 5th Ave, Suite 835 Des Moines, IA 50309

515.421.4055

info@iicorp.com

Through a public-private partnership, the Iowa Economic Development Authority and the Iowa Innovation Corporation are working with you to CREATE SOLUTIONS FOR TOMORROW.