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CEDAR RAPIDS, Iowa - Five Corridor start-ups received financial assistance on Friday from the Iowa Economic Development Authority board to help them expand into new markets, further develop products and hire staff.
Funding was awarded through the state's demonstration fund, which provides assistance to businesses with a high-growth potential in the manufacturing, biosciences and information technology industries.
Higher Learning Technologies, a companies that makes test-prep apps for dental and nursing students, received a $100,000 loan to help it expand into new markets.
Adam Keune, a co-founder and chief marketing officer, said the Coralville company plans to have 10 new apps by year's end.
Most of the new apps will focus on the health sciences, he said, but the company also will tackle financial exams. The aggressive expansion plans also include going after another round of funding early next year, with the goal of offering 100 apps by the end of 2014, he said.
The app offers a combination of practice questions, exam tips and additional resources for students. At last check, Keune said the company has about 113,000 users in 110 countries.
Another recipient, fitness drink manufacturer Kamath Biosciences LLC, which sells Cardiostrong, got a $10,000 grant that it will use to increase production of its current product, expand its product portfolio and increase its customer base. The Coralville company sells its product online and will soon distribute it in Eastern Iowa stores, according to its website.
FxRedux Solutions received a $150,000 loan to hire management and technical staff. The Iowa City company helps orthopedic surgeons in pre-operative planning for articular fracture shattered bones around a joint surgery through the use of 3D puzzle-solving software.
Iowa City-based TelePharm, a turnkey telepharmacy solution company, received a $25,000 royalty agreement to hire employees and launch nationally. The company provides a service that reduces labor costs, human errors and workflow inefficiencies by enabling a remote pharmacist to inspect and verify prescriptions at each telepharmacy to ensure accurate dispensing by onsite technicians.
Biopharmaceutical company KemPharm is developing new and safer therapies for the treatment of acute pain, chronic pain, attention deficit hyperactivity disorder and attention deficit disorder as well as other central nervous system disorders. The company, based in North Liberty, was awarded a $100,000 loan.
Five of the seven companies awarded demonstration funds were Corridor-based companies.