Helping Grow South Carolina’s Knowledge Economy

ANNUAL REPORT 2010

SC Launch is a private, not-for-profi t SCRA affi liate. It is an unprecedented

collaboration among SCRA and South Carolina’s university research foundations.

Delivering key tools to help entrepreneurs build start-up companies and high wage-earning jobs

Assisting in the commercialization of discoveries from the state’s research universities and from the commercial marketplace

Facilitating applied research and product development

Providing early-stage companies with access to business and economic development acumen and support through a comprehensive Resource Network

Positioning companies to secure follow-on funding

Helping established companies relocate to South Carolina

Helps Entrepreneurial Companies Grow in South Carolina and

Attracts Knowledge-Based Businesses to the State

In 2010, Forbes magazine recognized SC Launch as one of the top

entrepreneurial support programs in the country.

SC Launch provides a wide range of services and support

to grow and attract knowledge-based companies

and high wage-earning jobs.

NEW IDEAS CONTEST

SC Launch sponsors New Ideas for a New Carolina, a contest that awards creative thinkers with tools to transition their ideas into businesses.

SBIR/STTR MATCHING GRANTS

SC Launch awards matching funds to companies that have been granted Federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) Phase I awards.

EDUCATION and MENTORING

SC Launch mentors early-stage companies, and supports entrepreneurial training programs like the award-winning FastTrac Program.

DUE DILIGENCE PROCESS

Companies must pass a rigorous qualifi cation process to receive SC Launch funding. This helps them focus their business models and positions them to seek more substantial growth funding.

Supporting Each Stage

of the Innovation Pipeline

from Discovery to

Development to Commercialization

FUNDING

SC Launch provides investments to qualifi ed SC-based start-up companies to help them during the most challenging time in company growth.

GUIDANCE and SUPPORT

SC Launch Companies gain access to business and risk reduction expertise through a comprehensive Resource Network. The Network providesbusiness services such as banking, accounting, legal counsel, advertising and marketing.

LANDING PARTIES

SC Launch off ers assistance, support and net-working opportunities to landing parties wish-ing to relocate to South Carolina.

PUBLIC/PRIVATE PARTNERING

SC Launch plugs new companies into a business ecosystem supportive of knowledge-based innovations.

CREDIBILITY BUILDING

The discipline necessary to progress within the SC Launch program better positions start-ups to seek funding from angel and ven-ture capital sources. That’s one of the reasons the Portfolio Companies have been able to secure over $104M in follow-on funding.

COMMERCIALIZATION NETWORK

In partnership with SCRA, an SC-based global leader in applied research and commercialization, SC Launch Companies may gain access to ready markets through SCRA’s national and international-level programs.

INNOVATION CENTERS

SCRA Innovation Centers are accelerators for business development and commercialization of research discoveries. These Centers house emerging South Carolina-based companies and SC Launch clients enjoy priority access.

Incentive $ Incentive $ Investment $ Risk Reduction

Pre-Company /

University Startup

Initiatives

Proof-of-ConceptPrototypingClinical Trials

IP SupportBusiness Plan

ServicesLicensing

Startup Company

Seed-Stage Investments

SC Launch

Resource Network

MentoringSeminarsTraining

Networking

Grants Convertible NotesPromissory Notes

Equity InvestmentsRoyalties

Assessment Development Deployment SupportIDEA INNOVATION

‘New Ideas’ Innovation Prizes

SBIR/STTR

Phase 1 Matches

Landing Party

Support

Demonstration Projects

SC Launch helps qualifi ed South Carolina-based companies during the early stages of company development and positions them for

opportunities to secure larger follow-on investments.

104,000,000Dollars in follow-on capital secured by

SC Launch Portfolio Companies

Early-stage companies with potential for high impact must submit an applica-tion to be considered for SC Launch support.

SC Launch carefully screens candidate companies and selects those who best fi t with the SC Launch mission.

Upon successful completion of a strict due diligence pro-cess, the company may be reviewed by the SC Launch Board for investment.

Companies approved by the SC Launch Board qual-ify for SC Launch funding and are known as Portfolio Companies.

If a company’s products or services match the needs of an SCRA-managed research program, the company may gain access to Federal or corporate markets through an existing SCRA contract.

Moving through the SC Launch ProgramSC Launch has supported more than 230 SC-based start-up entities in many ways since its 2005 inception. Continued success of the program has led to an increasing number of applicant companies. Many companies have matured in their life cycle and have started to realize a return on the SC Launch investment. Thanks in part to their participation in the program, several have secured large follow-on funding from venture and angel investors. While each company’s progression through the program is diff erent, the criteria for support are strict, documented and consistently applied.

Passage through the SC Launch program positions a company to achieve angel or capital investor follow-on funding.

To date, SC Launch support-ed companies have secured over $104M in follow-on funding.

An SC Launch Zone Manag-er begins to counsel eligible candidates.

A network of service provid-ers and business develop-ment experts provide early commercialization support.

SC Launch has assisted many entrepreneurial companies, and the pace of activity is increasing.

A key measure of success for SC Launch is the ability of Client Companies to secure

signifi cant follow-on funding from angel, venture and other capital sources.

40Entities receiving Portfolio Investments

The most challenging time for a company is the early growth phase.

Cooperative Diagnostics

Real-time PCR (polymerase chain reaction) for diagnostic tests helping to reduced the cost and time of new test development

Hoowaki

Proprietary tooling and molds used to manufac-ture products with micron-sized surface features that improve performance

Terressentia

Manufacturing technology process that quickly refi nes high quality distilled spirits using energy-driven oxidation and fi ltration

Materials Innovation Technologies

Recycling technology and composite manufac-turing to shred carbon-based products and reform, resulting in new fi ber products

SC Launch investment

helps bridge the gap

between friends and

family funding

and larger private

equity funding,

including angel and

venture capital.

Immunologix

Antibody development for converting naïve B-cells to fully mature human antibodies targeting any antigen

using Clemson’s Advanced Materials Research Laboratory as an incubator.

SC Launch assisted the launch of Hoowaki through fi nancial support, advice and expertise, and with linkage to customers.

Hoowaki supplies technology to several South Carolina companies which will allow commercialization of innovative products and processes, or reduce costs and improve effi ciency. Thus both Hoowaki and their customers expect to provide employment, tax revenues and economic impact to South Carolina. Hoowaki is sponsoring research at Clemson University, and expanding links statewide to promote entrepreneurship, science and engineering.

Hoowaki engineers surfaces to improve energy effi ciency. They do this by providing surface engineering analysis and proprietary steel tools. Hoowaki’s customers can then manufacture metal, ceramic or polymer products with micron-sized surface features that improve performance.

Hoowaki’s surface engineering technology improves heat transfer, fl uid drag, friction and surface tension. Hoowaki’s principle markets are fl uid power (hydraulics); heat transfer (heating, cooling and refrigeration); and energy storage (battery and capacitor components). Hoowaki is also serving clients in the automotive, aerospace, biomedical, advanced materials, consumer goods, and food packaging industries.

Ralph Hulseman, president of Hoowaki LLC, looked at multiple states before deciding on

Microstructured Tooling

Hoowaki used the SC Launch investment to fi le additional product patents,

scale-up their current product and initiate deeper R&D for future products.

Terressentia has created a patented, award-winning manufacturing technology process called TerrePURE® that quickly refi nes high qual-ity distilled spirits for retailers and private brand owners. This revolutionary process uses energy-driven oxidation and fi ltration. Utilizing sophis-ticated engineering technology, Terressentia’s innovative process enables an acceleration of traditional fermentation and fi ltering, which pro-duces a very high quality product in real time.

The SC Launch investment will help expand sales and marketing eff orts, enabling Terressentia to

Terressentia®

Energy-driven Oxidation and Filtration

achieve more market recognition that the Terre-PURE process dramatically reduces the bad tast-ing minor alcohols while improving the fl avor of distilled spirits at a very low relative cost. As the company gains more exposure, they hope to continue to increase the number of restaurant, hotel, grocery, and liquor store chains that are adopting their products for their own private la-bel. This company is applying its award-winning chemical engineering processes to support the hospitality industry in South Carolina as well as its national and international clients.

Terressentia develops chemical engineering breakthroughs in its

North Charleston production facility.

Terressentia’s patented energy-driven oxidation and fi ltration process acts on a molecular level resulting in a chemically clean product.

KIYATEC Inc. is a life sciences company commer-cializing advanced three-dimensional (3D) cell culture plasticware and cell-based diagnostics. KIYATEC’s unique 3D cell culture technology helps researchers better understand and predict complex behavior of cell and tissue systems in vitro. This improves human health while reducing the time and cost associated with research, drug dis-covery and personalized medicine.

The two principals of KIYATEC obtained PhD’s in Biomedical Engineering from Clemson University. The 3D cell culture technology was discovered at Clemson through the work of Chief Operating Offi cer and co-founder Dr. David E. Orr, Ph.D. and licensed to KIYATEC.

Dr. Matthew R. Gevaert, Ph.D., CEO & Co-founder of KIYATEC said that initial SC Launch support

KIYATEC’s innovative 3D cell culture hardware yields more complete and relevant information than traditional 2D methods.

SC Launch helped KIYATEC transition technology discovered at Clemson

University into commercial products that are developed in Pendleton, SC.

Cell Culture Goes 3-D

allowed the company to obtain wet lab andoffi ce space in Pendleton, SC to conduct product development and manufacturing.

After achieving several business milestones, including fi nding a third party investor, KIYATEC qualifi ed for a second round of SC Launch funding. This helped the company hire a cell culture scientist and Clemson graduate, and launch its fi rst product in August 2010.

KIYATEC is generating revenue, has taken in matching funds, and is preparing for a Series A investment round. The company recently hired a board-certifi ed oncologist as its Chief Medical Offi cer. KIYATEC won the 2010 InnoVision Technology Development Award.

DigitalDerm, Inc. is the Columbia, SC-based maker of MoleMapCD® technology, the new standard for documenting the skin to identify melanoma in early, more treatable stages. The imaging record system employs total body photography to create a standardized, comprehensive “map” of a patient’s body. It merges the latest in digital imaging technology with proprietary software to create a total body baseline record to enhance the early diagnosis of malignant melanoma in at-risk patients.

In use for more than a decade at Duke and other medical facilities, DigitalDerm, Inc. has adapted and upgraded previous total body photography techniques utilizing fi lm and picture books to a computer-based system, allowing doctors and patients to harness the speed and power of computer-based image display and manipulation. The easy-to-use

technology encourages patients to become active contributors in the early melanoma detection process.

Melanoma is treatable when it is detected early. Most early detection is made by patients. MoleMapCD technology creates an easy-to-navigate repository of images that helps patients play a greater role in their own care. It has already saved lives by helping patients discover melanoma in time to seek critical early treatment.

MoleMapCD technology has a strong presence in the southeastern United States. DigitalDerm is launching MoleMapCD technology nationwide; exploring international introductions on a country-by-country basis; and developing new, functionality-enhanced releases of its technology.

An increasing number of health insurance policies recognize MoleMapCD®

as a reimbursable medical expense.

Tools and Processes for Critical Early Detection of Melanoma

VidiStar technology off ers physicians an aff ordable, easy-to-use solution for collecting and compiling complex data from a range of diagnostic imaging systems, such as ultrasound machines, into customized reports for effi cient processing and reading.

VidiStar’s Internet-based PACS and DICOM structured reporting solution uses the latest web-based technological standards. It improves clinical interpretation, analysis, and medical reporting for physician offi ce and hospital-based settings.

VidiStar has received approval from the United Stated Food and Drug Administration (FDA) to market its PACS & DICOM Viewer Software Serv-er Software System, HeartView and Standalone Software. VidiStar’s product is in 50 percent of Cardiology offi ces in the Charleston area.

An investment from SC Launch will help VidiStar achieve business milestones and reach its goal of $5M in annual revenue within fi ve years.

SC Launch investment has allowed VidiStar to expand market share

in its target markets.

Medical Imaging Software

CreatiVasc Medical delivers innovative vascular technologies that address the universal compli-cations of kidney dialysis, thereby dramatically improving patients’ quality of life.

Most dialysis patients have a graft tube implanted in their arm which detours blood from an artery to a vein. These grafts present costly complications, mostly due to the continuous diversion of blood even though the graft is only needed for dialysis 9-12 hours a week. CreatiVasc developed the Hemoaccess Valve System®, a proprietary device that will reduce complications by turning blood fl ow to the graft on and off as needed for dialysis.

CreatiVasc was founded by Greenville Hospital System University Medical Center’s nationally-recognized vascular surgeon, Dr. David Cull. CreatiVasc has won three InnoVision Awards,

and the Hemoaccess Valve System was one of the fi ve winners of the 2006 Innovation of the Year awards on the History Channel.

SC Launch support enabled accelerated product design, development and testing – and set the stage for the company to raise close to $3.5 million in private equity funding.

Testing of the Hemoaccess Valve System at Clemson University was reviewed by the FDA,

An ecosystem of collaborative entrepreneurial support is helping CreatiVasc

add to South Carolina’s growing medical device technology cluster.

Kidney Dialysis Connectivity

and human clinical trials began in 2009. Results from the initial human implants secured FDA approval for new features and devices that are now being tested in a clinical environment.

The SC Launch Resource Partners program identifi ed an in-state prototype manufacturer for a new component of the Hemoaccess Valve System as well as a new implantable device which has secured a fast-track approval process from FDA. Laboratory testing will begin in 2011.

The CreatiVasc story illustrates how an ecosystem of entrepreneurial support helps bring about medical advances in the state. Early funding from SC Launch, FDA testing at Clemson University, clinical trials at the Greenville Hospital System, and joint development of a new innovation with another SC medical device company were critical to CreatiVasc’s success.

The Hemoaccess Valve System®

redirects blood as needed for

dialysis, eliminating dangerous,

costly complications.

Vitasol, Inc. is a Columbia-based life science company that improves therapies in the fi eld of emergency medicine and critical care. Vitasol’s Resuscinex® is a patented multi-component IV fl uid for the treatment of hypovolemia (blood and/or fl uid loss from the vascular system).

Resuscinex® draws fl uid out of the microscopic spaces between cells and into the vascular system, quickly restoring blood pressure and normal heart rate. It also provides anti-oxidants, anti-infl ammatory agents and intermediate energy to cells. Resuscinex® is eff ective at one tenth of the dose of standard IV fl uids.

Vitasol, Inc. will begin human trials in coming months. The company plans to

establish manufacturing of its Resuscinex® product in South Carolina.

This entirely new approach for treating shock victims could be applied in the battlefi eld and in hospitals everywhere.

“We started this company hoping to solve a major problem for trauma victims and improve treatment outcomes in critical care situations,” stated Vitasol CEO John Propst. “The domestic market is quite large and the global implications are signifi cant. Our initial test results are very encouraging, and with this investment from SC Launch we will be able to secure follow on investments and move our research discoveries that much closer toward improving patient care.”

Vitasol received SC Launch funding in 2010 to help commercialize its Resusinex® product which is entering an FDA testing period.

IV Fluid to Treat Blood Loss

Immunologix is an antibody development company founded on a proprietary method of converting naïve B-cells to fully mature human antibodies targeting any antigen.

Utilizing a proprietary in vitro method, exclusively licensed from the Medical University of South Carolina, Immunologix is uniquely positioned to derive countless fully human antibody-based therapeutics specifi c for virtually any known biological target. No other known technology platform can produce fully human antibodies using 100% in vitro system.

This rapidly growing market exceeded $30 billion in 2009 yet all currently approved antibodies are non-human products. This process is far superior to traditional methods and off ers increased safety

and reliability, lower costs, and a dramatically reduced delivery time.

SC Launch funding allowed Immunologix to complete proof of concept and commercialization

validation studies. The successful completion of these studies helped prepare Immunologix for a number of investor forums.

Immunologix was recently awarded $244,500 from a Federal Therapeutic Discovery Tax Credit program. This grant validates the Immunologix technology and further indicates that SC Launch is choosing the right companies for investment.

Immunologix is one of the fi rst tenants of the new SCRA MUSC Charleston Innovation Center, a state-of-the-art facility with wet labs and business offi ces. SC Launch supported companies like Immunologix and SCRA’s Innovation Centers off ers employment to university graduates of the state that would otherwise have to leave the SC in order to fi nd similar employment.

With help from SC Launch, Immunologix is advancing the establishment of a South Carolina center of excellence in biotechnology.

The SCRA Innovation Centers and companies like Immunologix draw and retain

top-level talent by providing places to build rewarding careers within the state.

Antibody-based Therapeutics

Ion Surgical Technologies, Inc. is a medical device company located in Mount Pleasant, South Carolina. The corporation has developed novel products for the orthopedic surgical market. These unique surgical devices minimize or eliminate the need for implants currently used in several soft tissue procedures such as arthroscopic rotator cuff repair. These devices will be marketed under the PassTech Trademark beginning in early 2011.

The rigorous process leading to Ion Surgical’s acceptance as an SC Launch

Portfolio Company helped position the start-up to seek additional investors.

SC Launch provided gap funding for the company as well as business expertise making the expected product introduction possible.SC Launch’s interview process added a level of due diligence that is helpful in attracting additional investors.

Ion Surgical Technologies is releasing its surgical devices in the US and foreign markets in 2011. For South Carolinians, this means broader surgical options for patients and new jobs in the Charleston area in a high technology sector.

Rotator Cuff Surgery without Implants

The PassTech arthroscopic rotator cuff device replaces implants with suture.

Cooperative Diagnostics uses the most advanced form of real-time PCR (polymerase chain reaction) for diagnostic tests. Cooperative Diagnostics’ patented technology used in combination with other off -patent technologies has reduced the diagnostic cost and reduced the time of new test development to less than 30 days.

Dr. Brent C. Satterfi eld, Cooperative Diagnostics’ President and Founder, said he plans to utilize SC Launch investment funding to further the company’s expansion and product development.

“The SC Launch investment will not only allow us to provide better jobs in South Carolina, but will also allow us to expand our vision worldwide,” said Satterfi eld. “With seven tests approved for sale in the developing world, we are now able to concentrate our eff orts on getting those tests to the people who need them most.”

“This region has evolved from a textile and railroad hub, to playing a signifi cant role in healthcare and the biotechnology industries in South Carolina. Companies like Cooperative Diagnostics will not only have an economic impact in the local community, but may well represent the future of the area’s business expansion in years to come,” said State Senator Billy O’Dell.

Mark Warner, Executive Director of the Green-wood Partnership Alliance stated that, “by com-bining local incentives with statewide programs like SC Launch, we have seen the fi rst fruits of enacting our strategic plan to build on Green-wood’s assets. Companies like Cooperative Di-agnostics with large growth and global revenue potential are exactly the kind of economic driver we hope to attract to this area.”

Real-time PCR for Diagnostics Testing

Cooperative Diagnostics is the fi rst company to truly exploit biophysical models and statistical bioinformatics to engineer novel molecular diagnostic technologies.

Climax Global Energy, Inc., a clean fuels com-pany, has developed a patented microwave-as-sisted pyrolysis technology that converts waste plastics and other hydrocarbon waste streams into high-grade synthetic crude oil. The process addresses the environmental problems of waste management and landfi lling, while providing a renewable source of transportation fuels and other valuable products.

Climax’s pyrolysis process essentially cuts the plastic molecules (which are long chain polymers) into shorter chain polymers to make synthetic oil. Pyrolysis is a process in which a substance is heated in the absence of oxygen and typically occurs under pressure and at operating temperatures of more than 430°C (800°F), although Climax’s process runs near atmospheric pressure.

Synthetic oil from the process can be refi ned into clean diesel, synthetic lubricants and commer-cial waxes. The North American lubricant and wax markets are approximately $6 billion and $3 billion respectively, according to CEO John Griffi th. The advanced technology recycling in-dustry has the potential to create good-paying jobs in South Carolina and around the country.

The company runs a commercial-scale prototype in Fairfax, South Carolina with a 3-ton/day capaci-ty. Climax will begin operating its fi rst commercial facility this year at the same location. Eventually, Climax plans to build and operate facilities in a number of states and countries around the world.

The growth of Climax Global Energy demon-strates how SC Launch is helping South Carolina move forward with important alternative energy and sustainability initiatives.

Climax Global Energy operates a commercial-scale prototype and is

developing its fi rst commercial operation in Allendale County.

Renewable Waste-to-Fuel Technology

A Materials Innovation Technologies Company

MIT-RCF, a Materials Innovation Technologies company, specializes in reclaiming, re-engineer-ing, and repurposing carbon fi ber composites. MIT-RCF is revolutionizing the use of reclaimed carbon fi ber materials in the manufacture of complex-geometry composite parts for a diverse range of applications and is leading the way in sustainable composite technology.

MIT-RCF will focus on reclaiming carbon fi bers from excess manufacturing materials and end-of-life parts that would otherwise end up in a landfi ll, and utilizing them in the 3-DEP™ pro-cess to mold preforms and fabricate parts for the aerospace, automotive, defense, mass transit,

SC Launch played a role in MIT-RCF’s decision to locate in Lake City.

The company is part of an alternative energy and environmental sustainability

technology cluster that is growing in the area.

MIT-RCF leases a 49,300 sq. ft. facility inLake City, SC with room for planned expansion.

Carbon fi bers reclaimed from F-18 stabilators were utilized in the 3-DEP™ process to create preform that was molded into wheelhouse support parts for the Chevrolet Corvette.

and recreational sporting goods markets, just to name a few. The 3-DEP™ process is the only molding process in the world that has successful-ly created a carbon fi ber preform from reclaimed carbon fi ber that was then molded into a part for an automobile.

MIT-RCF reviewed several location options be-fore deciding to locate in Lake City, SC. The close proximity to sources of materials, distribu-tion networks and access to resources such asSC Launch were instrumental in the decision process. The economic development eff orts and incentives were superior to those in other states that were under consideration.

Reengineering Carbon Fiber, Reclaiming the Environment

Video Healthcare Record

CareCam Innovations delivers a patient-issued video documentation system for healthcare documentation. The company’s fi rst product, the CareCam System’s ICan, is a patient-issued video “smart-phone” type device with accompa-nying software. This patented invention creates a specifi c and accurate electronic point-of-care health record whose effi ciency and eff ectiveness will save time and money for caregivers. The technology ensures safety while benefi ting and protecting both patient and health provider.

The CareCam System simplifi es accurate record keeping with video. Events are tagged by the care providers while care is administered. CareCam documentation will be integrated as a part of

CareCam Innovations off ers a win-win with improved patient care through medical

device technology and quality jobs resulting in economic benefi t to the state.

the patient’s health record and provide real-time video documentation that gives healthcare providers a visual record rather than just written, typed, and ineffi ciently organized descriptions.

CareCam received a $200,000 investment from SC Launch in January 2011. They completed pilot clinical trials in December 2010. The Greenville-based company is fi nalizing plans for development of second generation prototypes and commercial-ready software that will off er unique, expanded in-patient quality care capability by allowing clinical practitioners a way to insure more accurate and full tracking of direct interaction with patients.

CareCam’s product, ICan, is revolutionizing documentation and equipping people for health care. This patented invention creates a specifi c and complete electronic point health records for each patient.

Zipit has developed a unique platform technol-ogy that connects devices to Internet-based content services. The wireless connection isestablished through Wi-Fi or cellular and can be used in a variety of applications. One example is loading photos from online sources like YouTube, Facebook or Snapfi sh, to digital picture frames.

The technology created by Zipit enables people to connect to one another and to their personal-ized Internet content.

Chief Executive Offi cer Frank Greer originally thought that Zipit should pursue venture capital funding when the company began to get off the ground in 2005. Venture capital investors were reluctant to invest in the early-stage company, so Zipit turned to SC Launch

R

R

for help. The role of SC Launch is often to help bridge the funding gap for young companies.SC Launch funding allowed Zipit to branch out from its parent company, fi le key patents and focus more time on raising money. SC Launch played a crucial role in making Zipit happen, and helped position the company for larger venture capital follow-on funding.

Zipit is based in Greenville, SC and according to Greer, “You could not drag us out of South Carolina. We love the state.”

Zipit has proven to be a solid investment for the SC Launch program. The company has brought in about $11M in venture capital funding from out of the state, and has generated about $60M in economic benefi t to South Carolina.

Zipit provided the technology that drives HP’s wireless Digital Picture Frame, allowing the device to seamlessly connect to social network sites (Facebook and MySpace), top online photos services, and cell phones and email.

Zipit has secured over $11M in venture capital funding which illustrates

a critical role of SC Launch supporting early-stage companies.

Wireless Internet Connection Platform Technology

32SBIR/STTR matching grants awarded

SC Launch awards matching funds to companies that have secured Federal Small Business

Innovation Research (SBIR) or Small Business Technology Transfer (STTR) Phase I awards.

SC Launch matching funds increase the impact of

Federal SBIR/STTR awards to South Carolina’s competitiveness.

SC Launch awards matching funds to South Carolina-based companies that have been granted Federal SBIR/STTR awards.

The program fosters job creation and economic development in South Carolina by increasing the competitive position of South Carolina small businesses in attracting SBIR and STTR grants. It also provides an incentive for Phase I award-winning companies to participate in the more substantial Phase II program.

The Program:

Increases the number of applications for Federal research dollars submitted by South Carolina small businesses;

Helps South Carolina companies bridge the funding gap period between the fi nal Phase I payment and the fi rst Phase II payment in the Federal SBIR/STTR Program;

Increases the intensity of the research conducted under Phase I, making South Carolina small businesses more competitive in the competition for Phase II funds; and

Encourages the establishment and growth of high-quality, advanced technology fi rms in the State of South Carolina.

Early-Stage Companies Receiving SBIR/STTR Award Matches from SC Launch:

Advanced Core Technologies, LLC

Advanced Photonic Crystals

Agile Genomics, LLC

Agri-Tech Producers, LLC

CarboNix, LLC

Cell & Tissue Systems, Inc.

Correlated Solutions Incorporated

Doty Scientifi c

Electronic Systems Support, LLC

FirstString Research, Inc.

Genphar, Inc.

Hoowaki

Key Wave

LuminOF, LLC

Microbial Fuel Cell Technologies, LLC

Nitek, Inc.

Selah Technologies, LLC

SENS4, LLC

Sensor Electronic Technology, Inc.

Sphingogene, Inc.

Surfagen

TECHFISH

Tetramer Technologies, LLC

Vortex Biotechnology Corporation

10Landing parties assisted by SC Launch in their

relocation to South Carolina

development company. Selah developed and commercialized Selah Dots® - a disruptive carbon based nanotechnology which Selahlicensed from Clemson University.

Selah collaborated with Clemson and the University of South Carolina prior to partnering with the Greenville Hospital System Cancer Center to further develop the company’s technology within a clinical setting. Models

Nanotechnology Products for the Biomedical Industry

developed within the Greenville Hospital System are now expected to lead to clinical trials using Selah Dots® to make cancer “light up” so it can be more easily surgically removed. In 2010, a comprehensive patent was issued by the USPTO for the Selah Dots® technology.

This merger represents the successful fulfi ll-ment of SC Launch support for the relocation of knowledge-based companies into the state. Lab21’s US headquarters and diagnostics labora-tory are now both located in Greenville County.

SC Launch fundamentally eff ected the ability to attract Lab21 into the US according to Michael Bolick, Selah’s founder and now President of Lab21, Inc. He also credits the advisors and coun-selors available through SC Launch’s Resource Network with moving his company forward.

Lab21 is a personalized medicine diagnostic specialist supporting healthcare providers, the pharmaceutical and biotechnology industries with technically advanced products and services.

Lab21 delivers a rapidly growing portfolio of molecular and viral diagnostics, plus pharmaco-genetic and patient profi ling tests. This unique combination adds value to early stage drug development, clinical trials and regulatory pro-cesses in the pharmaceutical industry and helps healthcare providers treat and monitor patients.

Lab21 has built a major international diagnostics business through a buy and build strategy, coupled with organic growth of the core business. Lab21 recently merged with Selah Technologies, a South Carolina-based, SC Launch-supported nanotechnology

Lab21’s decision to locate its US headquarters in South Carolina will further

biomedical innovation and establish new employment opportunities in the state.

BoroScience International Inc. serves the rapidly expanding hydrogen economy market. The com-pany uses the element boron which can form complicated molecular structures such as chains, clusters, ring and cage-shaped formations.

BoroScience International assists in rapidly adopting boron-based technology to clients’ specifi c needs. The company delivers consulting services for the selection of optimally suited boron compounds and for the subsequent design of high-yield, low-cost synthesis pathways. BoroScience International off ers custom synthesis of boron compounds in

adequate quantities for small-scale pilot or proof-of-principle studies as well as for large-scale applications.

BoroScience International currently operates its research and development out of WeylChem research laboratory in Elgin, South Carolina. In January, 2011, BoroScience exclusively licensed WeylChem Sustainable Materials, LLC, to manu-facture and market ammonia borane, and bora-zine. This agreement was enabled by WeylChem Sustainable Materials award of the 2010 Fuel Cell Challenge Prize.

The combination of BoroScience International’s proven lab technology and

WeylChem’s pilot plant and scaling up assets will provide new jobs and a

long term economic impact in South Carolina.

Chemical research and development company with small scale manufacturing capabilities

BoroScience International supports many industries, such as aircraft brakes, electronics and semiconductors, nanotechnology, and ceramic coatings.

Alexium uses a patented reactive surface technology (RST) to develop products in a number of target markets. The platform technology enables surface modifi cation and attachment of nanoparticles or multiple chemical functional groups onto a variety of surfaces or substrates to provide water-proofi ng, oil-proofi ng, antimicrobial and nonstick properties, ultraviolet protection and other functions.

Alexium is producing technical fabric products for the US military and developing new textiles and other advanced materials for commercial applications such as building materials, glass, packaging, paints and other applications.

The ability to incorporate multiple functional treatments into a single coating is a unique ben-efi t. For example, Alexium has applied RST to produce multi-functional textile coatings that

are antimicrobial, fl ame-retardant, and oil and water shedding.

The RST process uses off -the-shelf chemicals and environmentally-friendly solutions to improve performance in a much more cost and

energy effi cient manner than conventional or competing technologies.

Alexium set up a new technical fabric manufac-turing and research development plant in Greer and tripled production capacity in the last nine months. Alexium has already grown to over 15 full and part-time employees and is on target to bring 200 new jobs to Greenville County over the next fi ve years.

The company plans to hire additional chemical engineers, materials engineers, scientists, and production operators. Alexium will add workers with experience in the textile and other target industries. According to CEO Steve Ribbich, the decision to expand his company in the Upstate was an easy one. Greenville County has an excellent business environment and a strong workforce, as well as exceptional market access.

Alexium set up a new research development, demonstration, and manufacturing

plant in Greer with the possibility of other production plant spin-outs.

Reactive Surface Treatment for High Performance Products

Alexium surface treatments improve the performance of a wide variety of products.

Hybrid Bus Manufacturer

The unique EcoRide™ BE-35 battery electric tran-sit bus is the most fuel effi cient transit bus on the planet and eliminates all tailpipe emissions.

Proterra was founded in 2004 to design and manufacture heavy duty vehicles that are pow-ered solely by clean domestic fuels. With the launch of the EcoRide™ BE-35 battery electric bus, Proterra has become the leading innovator of zero emission commercial vehicle solutions. Proterra delivers clean, quiet running vehicles that also meet government regulations and local mandates. Proterra is the fi rst company to deliver a full size transit vehicle that meets California’s Zero Emission Bus Rules.

Proterra plans to construct more than 1,500 buses per year and to grow the

company to 1,300 employees over the next fi ve years.

Proterra relocated to South Carolina with support from SC Launch. The company established its headquarters in an interim assembly plant in Greenville, SC. The fi rst made-in-Greenville electric Proterra bus was delivered in 2010. The company is currently designing and constructing a new research and assembly plant at CUICAR (Clemson University International Center for Automotive Research).

Proterra’s relocation to South Carolina’s Upstate adds to the area’s growing national recognition as a go-to location for technology and energy based companies.

Advances in genetic science off er some of the most exciting possibilities for health care today. Iverson Genetic Diagnostics is helping lead the way into the new era of personalized medicine. We off er advanced genetic testing to health care providers to promote early disease detection and to help physicians achieve optimal dosing of critical medications.

Iverson develops genetic tests that enable a new model for comprehensive disease detection and informed treatment. This model will usher in a new era of predictive, preventative and aff ord-able health care.

One benefi t of Iverson’s genetic testing is to de-termine drug eff ectiveness before prescription, in comparison to other testing methods that re-quire the patient be on the drug for 7-10 days to determine eff ectiveness.

With help from SC Launch, Iverson Genetic Diagnostics opened a new east coast testing facility in the SCRA MUSC Innovation Center in Charleston, SC in June, 2010. Saliva or blood samples will be evaluated at the state-of-the-art wet lab facility, quickly generating defi nitive reports that will help care providers make the best decisions to help their patients.

Iverson Genetic Diagnostics opened a new east coast testing facility in the

SCRA MUSC Innovation Center in Charleston, SC in June, 2010.

Genetics Testing to Enable Personalized Medicine

Clean Energy Technologies for Portable Applications

Trulite chose South Carolina as the location of its fuel cartridge manufacturing site in competition with California, Connecticut, Ohio and North Carolina. Trulite’s focused interest

Trulite’s fi rst fuel cell “beta” product is the KH4 generator, a clean, quiet, and lightweight portable electric generator utilizing innovative hydrogen and fuel cell technologies. The KH4 is lower weight, lower volume, and more ecologically friendly than traditional batteries or fossil fuel generators. It is lightweight and safe for indoor use without the worry of dangerous exhaust emissions associated with gasoline generators. The only emissions are heat and water that is internally recycled. The system’s solid state HydroCell™ hydrogen fuel cartridges are hot swappable, compact, easy to use, and recyclable. Users just add water to activate the hydrogen fuel source. Prior to activation, the HydroCells™ have an almost infi nite shelf life.

Trulite is a successful example of high technology recruitment in South Carolina.

Its presence advances the state’s leadership role in alternative and green energy.

Trulite’s hydrogen fuel cell generators can be used in many diff erent applications including commercial, outdoor, marine, industrial, and disaster response situations.

in South Carolina increased after attendance at a 2007 SC Launch-supported National Hydrogen Association Military Power forum in Columbia. Trulite was further encouraged by the unprecedented attendance at the 2008 National Hydrogen Association meeting in March of 2008. SCRA encouraged the decision with monetary commitments to the company.

Trulite went on to win an award in the highly competitive SCRA Greater Columbia Fuel Cell Challenge, which it used to build 12 generators. Those generators were used by the City of Columbia, the University of South Carolina, Midlands Technical College, and Fort Jackson among others in demonstration projects.

Spectra won the prestigious R&D 100 Award for its DiscovIR-LC™ system. Using

the company’s proprietary ‘breakthrough’ desolvation technology this system

automates Infrared Spectroscopy to High Performance Liquid Chromatography.

Spectra Analysis Instruments, Inc., (SAI) devel-ops, manufactures and markets next-generation Molecular Analysis Instrumentation that solves the critical limitations of current Infrared tech-nology being experienced by the life sciences, chemicals and other industries, in the essential analysis of complex mixtures.

Spectra’s systems quickly and effi ciently identify chemical compounds in a variety of mixtures across multiple markets, generating a billion dol-lar global market.

Spectra’s Fourier Transform Infrared (FTIR) systems are fully automated to gas and liquid chromatography. Using solid phase infrared

transmission, the system provides high fi delity spectra for a broad range of applications. TheLC/GPC-IR systems are used in pharmaceutical drug formulations, industrial and medical implant polymer and copolymer analysis, and cosmetics. The GC-IR systems are used in forensic controlled substance analysis, foods, fl avors and fragrances. Both the LC-IR & GC-IR systems are used to provide ‘state of the art’ general analytical capability.

SAI is currently establishing its presence and growth in Greenville and plans to relocate all operations to South Carolina. The company is currently looking to hire chemists, engineers, marketing, sales and support staff .

Hyphenating Infrared Spectroscopy to Gas & Liquid Chromatography

4Innovation Centers to

commercialize research discoveries

State-of-the-Art Laboratories, Manufacturing and Business Facilities

SC Launch-supported companies enjoy priority access to SCRA’s Innovation Centers. These Centers, which were built in close alignment with South Carolina’s research universities, represent the stepping stones from basic research to market-ready technologies. They are places where intellectual property can be developed into technologies, and companies can grow in furtherance of our economic development mission.

SCRA MUSC Innovation CenterThe SCRA MUSC Innovation Center located in Charleston, SC features fully-equipped wet labs for applied research in bioscience, energy and environmental sustainability.

SCRA USC Innovation CenterThe SCRA USC Innovation Center in Columbia, SC is a state-of-the-art facility for early-stage com-panies entering scale-up manufacturing stages.

Duke Energy Innovation CenterUnder construction in partnership with Duke Energy and Clemson, this advanced materials research facility in Anderson, SC is slated for opening in Spring 2011.

SCRA ATI Innovation CenterThe SCRA ATI Innovation Center in Greenwood, SC serves as a scale-up facility for diagnostic, therapeutic and pharmaceutical companies.

Wet labs and research facilities are essential to

establishing new knowledge-based companies and

attracting landing parties. SCRA’s Innovation Centers

answer this need in South Carolina.

95Percent of 2010 SC Launch funds were invested

in entrepreneurial company growth.

SC Launch was formed with $12 Million of SCRA’s retained earnings.

With additional investments in 3 new Innovation Centers, SCRA’s total investment

in South Carolina’s Knowledge Economy is more than $26 Million.

Sources and Uses of Funds

SC Launch was formed with SCRA’s retained

earnings. Contributions to the Industry

Partnership Fund sustain the program.

SC Launch is an effi ciently run program that operates with very little overhead. The program began producing results quickly and the pace of activity has increased.

On a consistent basis, SC Launch program opera-tions are lean and effi cient, assuring that most program funds directly support the growth of the Knowledge Economy.

Certain services and support are mandated by the state. They include market research, intellec-tual property protection, fi nance, management and business practices, relevant science and technology, industry research partner recruit-ment, and other support as required to advise and assist new company growth or product launch.

Disciplined sourcing assures that the majority of SC Launch funds

are invested in entrepreneurial start-up companies.

SC Launch is a program designed for, and run by entrepreneurs.

SC Launch, Inc. Board

The SC Launch, Inc. Board of Directors evaluates early stage companies and qualifi es them for program investments. The Board is an experienced commercialization forum that ensures that SC Launch is supporting the companies that will have a lasting positive impact on South Carolina’s economic future.

The Board members have signifi cant experience with entrepreneurial endeavors, managing companies in a technology industries, research activities of research universities, and investing in or serving on the board of early stage or technology companies.

SC Launch Staff

The SC Launch staff members are capable, eager, thorough and fl exible. They understand the trials and challenges that face entrepreneurs because they have formed and operated entrepreneurial businesses themselves. Because they are committed to the program mission, the small staff has helped create an impressive array of results.

SC Launch Zone Managers lead Client Companies through a due diligence process that is as thorough as any from private equity groups. They help young companies get over tough hurdles while they are still putting all of the pieces of the puzzle in place.

SC Launch Staff (from left):Martin Ettlemyer - Director of OperationsLori Mack – Program CoordinatorDerek Willis – Coastal Zone ManagerGreg Clark – Midlands Zone ManagerDave McNamara – Executive DirectorGreg Hillman - Director of Zone Operations

SC Launch Inc. Board (from left):John J. Warner - Vice President, Finance and Administration,SC Governor’s School for the Arts and HumanitiesTimothy J Reed - Managing Partner, Margin Holdings, LLCJudy Davis - Vice President and Chief Legal Offi cer,BlueCross BlueShield of SC and its Companion CompaniesDeepal Eliatamby - President, Alliance Consulting Engineers, Inc.Joe Wischerath - Principal, ZinniaThomas Strange - Sr. Director R&D, Saint Jude Medical, CRMDAndrea H. Marshall - Executive Administrator, Charleston Angel Partners, LLC

SC Launch would like to thank the Resource Partners for services provided to

Client Companies. SC Launch would be unable to provide all mandated services

without the generous support and commitment of its Resource Partners.

Accounting

Bauknight Pietras & Stormer, P.A. Elliott Davis, LLC

Engineering

Flextronics UEC Electronics

Human Resources/

Employee Benefi ts

Clarke & Company Benefi ts, LLC Corporate Benefi ts, Inc. McPherson, Berry & Associates, Inc. Smart Work | Network, Inc. Keenan & Suggs, Inc.

Information Technology

Carolina Software As A Service Cyberwoven, LLC Immedion ProActive Technology, LLC PST Computer Training, Inc VC3, Inc.

Banking

BB&T Carolina First Bank Square 1 Bank Wachovia

Legal

Entrepreneurs Law Group, LLC Dority & Manning, P.A. Haynsworth Sinkler Boyd, P.A. Michael D. Layman, Attorney at

Law, P.A McNair Law Firm Nelson Mullins Riley

Scarborough, LLP Nexsen Pruet, LLC Ogletree Deakins Nash Smoak

and Stewart Stipkala, LLC Willcox Buyck & Williams, PA Womble Carlyle Sandridge &

Rice, PLLC Wyche Burgess Freeman &

Parham, P.A.

Marketing

Byrum Innovation Group CarterTodd & Associates, Inc. Chernoff Newman Dynamic Exhibits ECI – Find New Markets Post No Bills Strategic Marketing Solutions

(SMS) Trevelino/Keller

Communications Group VantagePoint

SBIR/STTR Assistance

TECHFISH, LLC Nimbus Technologies

Other

South Carolina Chamber of Commerce

South Carolina Manufacturing Extension Partnership (SCMEP)

Helping Grow South Carolina’s Knowledge Economy

www.sclaunch.org