IEDA awards $350K in loans to 5 Iowa startups
The Iowa Economic Development Authority awards funding to startups in the form of low-interest loans through its Innovation Continuum, which includes five funds that are designed to offer companies non-dilutive funding at every stage of business growth. The funds are: Proof of Commercial Relevance (POCR), Demonstration Fund and the Innovation Acceleration Fund, which offers Launch, Propel and Innovation Expansion awards.
These financing options are geared toward companies operating in the fields of advanced manufacturing, biosciences or information technology. Each fund in the continuum also requires the company to supply matching funds, which could come from family and friends funding, outside investors or federal funding programs like the Small Business Innovation Research program.
Starting this year, IEDA has provided additional funding through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). Iowa received $96 million from SSBCI, and $22 million was allocated to increasing the amount of funding available through each of IEDA’s innovation funds. For example, before the SSBCI funding, companies could receive a POCR loan of up to $25,000; now POCR loans of up to $50,000 are available.
After the application process, which includes an interview with a panel of experts in the industry the company operates in, companies present to the IEDA Technology Commercialization Committee (TCC). The TCC then makes recommendations to the IEDA board for final approval of awards.
The SSBCI Review Committee also reviews and scores applications and makes recommendations to the executive director of IEDA for final approval of awards that are funded through the SSBCI allocation. Both committees meet every two months.
Below are the startups and organizations that received funding through IEDA programs in the first quarter of 2025.
Iowa Innovation Continuum
Reality Wave LLC – Coralville: $50,000 Proof of Commercial Relevance loan. Reality Wave uses artificial intelligence to provide objective evaluations of academic manuscripts and grant proposals with its flagship product ReviewerAI.
Tumbleweed Vida Inc. – Des Moines: $100,000 Demonstration Fund loan. The startup offers a step-by-step approach to managing end-of-life and post-loss plans with a legacy planning software that helps organize records, log final wishes, store legal documents and share grief resources.
Janas Materials Inc. – Ames: $100,000 Demonstration Fund loan. Janas Materials develops sustainable technology for the coating industry that improves the appearance and application of wood stains. Its product in development is an additive for water-based stains that is more environmentally friendly and achieves the same quality color consistency as oil-based stains.
Poultry Patrol Inc. – Coralville: $50,000 Proof of Commercial Relevance loan. The company created a poultry tending robot to stimulate bird movement in turkey barns and alert farmers of spills, health and maintenance.
Better Natural LLC – Fairfield: $50,000 Proof of Commercial Relevance loan. Better Natural has developed technology to integrate roof sheathing, roof cover and solar energy in one single layer, which allows them to lower manufacturing and installation costs and create solar energy systems that look like roofing tiles.
State Small Business Credit Initiative
No startups were approved for SSBCI loans during the first quarter.