Over the past 35 years, Akron has successfully transformed itself from the rubber capital of the world into a diversified business climate that supports more than 600 metalworking, electronics, machining, advanced materials (polymers) and biomedical technology companies. In the past six years specifically, the city has devoted a major economic development effort and significant private capital investment towards attracting companies from this last area.
The most recent investment came in 2011, when a new vehicle was created to further attract and create new biomedical company investment in Akron. Akron Bioinvestments Funds LLC was created by the city’s Akron Development Corp. and was funded by private organizations including Medical Mutual, First Energy, Cascade Capital Corp. and Northeast Ohio Medical University. It is a $1.5 million loan fund aimed at providing financial support for the commercialization of high-potential biomedical early-stage companies that are close to market entry.
There are two components of the fund. First, $1.25 million will be dedicated to the Rapid Commercialization Loan Fund, which will include loans in the $100,000 to $250,000 range that are approved based on the merit of the applicant’s business plan and feature low interest rates and flexible repayment schedules. In addition, $250,000 will be dedicated to the Product Development Fund, where grants of $25,000 are awarded based on proof of product concept, market assessment and business plan development.
A major goal of the initiative is quick turnaround time on all funding requests reviewed. This new availability of funding is expected to draw both national and international interest from companies in the biomedical field to Akron in coming years.