SBIR/STTR program to support tech startups, high-wage job growth
FRANKFORT, Ky. (July 10, 2025) – Today, Gov. Andy Beshear announced that eight innovative Kentucky companies will receive $750,000 in state matching grants to support high-paying jobs and to further grow the state’s technology sector.
The grants are part of the commonwealth’s nationally recognized Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) matching funds program. The funds will match, in part, $6.4 million in federal grants the businesses will collectively receive.
“Creating a business-friendly environment that allows for startup technology companies to thrive is a key step in making Kentucky a hub for innovation and high-wage job opportunities,” said Gov. Beshear. “These companies are tackling today’s problems with tomorrow’s solutions, helping to make our New Kentucky Home – and the world – a better place. Congratulations to these businesses on this funding, which I know will support all the great work being done across our commonwealth.”
The eight Kentucky-based businesses awarded matching funds are using technology to advance multiple fields, from cancer therapy and postpartum recovery to battery technology and health care screening improvements. Recipient companies include:
B.A. Maze, Inc. (Louisville)
At-Home Health Station (AHS) systems by B.A. Maze Inc. provides a technology platform that organizes health monitoring tools, enables prompted health information and has secure data for streamlined patient-caregiver care and communication. The AHS will be developed via implementation feedback from individuals living with cognitive impairment/Alzheimer’s disease and related dementias, ensuring the design is appropriate to the specific needs of this population.
BumptUp Labs Inc. (Bowling Green)
The BumptUp Labs project focuses on improving maternal and infant health through a digital platform to make key lifestyle modifications. The overarching goal of BumptUp is to become a sustainable platform for safe, effective, inclusive and evidence-based physical activity guidance to all pregnant and postpartum women.
Caza Innovations LLC (Bowling Green)
The Caza Innovations project will develop a portable optical light source and power meter capable of simultaneously measuring the power in optical fiber at multiple discrete wavelengths. The developed portable test instrument will support installation, testing, operations and growth of optical systems for terrestrial and mobile optical communication markets.
Creosalus Inc. (Louisville)
The devastating outcomes for glioblastoma (GBM) patients remain despite the advances in cancer therapy. Improved GBM therapy as a critical unmet need requires new GBM intervention capabilities as proposed with this Creosalus project. The premise of this project is that one of the challenges to improving GBM patient lives can be overcome by increased therapeutic coverage of GBM tumors using an innovative convection enhanced delivery catheter.
HeXalayer LLC (Jeffersontown)
HeXalayer is developing an advanced manufacturing process for their proprietary graphene material, which is utilized in the development of ultralight and safe lithium-ion batteries for the U.S. Department of Defense, as an additive to polymers, lubricants and other critical industrial applications. U.S.-based graphene manufacturing is important not only to national security but also for enabling the development of other cutting-edge technologies and products.
Lagrange Scientific LLC (Pewee Valley)
Lagrange Scientific is addressing a critical unmet need in kidney cancer by developing a novel laboratory-developed test to predict metastasis risk at the time of primary tumor resection, years before the standard of oncological care is able to identify and treat the spread of the cancer.
PGXL Technologies LLC (Louisville)
PGXL Technologies and the University of Louisville Research Foundation are developing a rapid, simple-to-use and cost-effective urine collection kit for detection of obstructive sleep apnea in children, which will support diagnosis, patient monitoring and screening. Common tests are reliable but limited by high cost and require an overnight sleep study at a clinic, making a simple non-invasive urine test beneficial and commercially attractive.
Space Tango LLC (Lexington)
The TangoBox is an evolution of Space Tango capabilities that is optimized for automated space manufacturing and research. In this project, Space Tango is proposing a new multi-use R&D and manufacturing infrastructure to vastly increase the throughput of the International Space Station (ISS) and future commercial platforms such as commercial ISS modules and commercial Low Earth Orbit (LEO) destinations for manufacturing purposes. This capability will benefit commercial operators and users in LEO as well as NASA for its forecast of needs for services in LEO after ISS is retired.
Kentucky’s SBIR/STTR program, overseen by KY Innovation, provides critical non-dilutive capital for promising early-stage tech companies by matching all or part of federal SBIR/STTR awards received by Kentucky-based businesses or companies committed to relocating to the state.
“The Kentucky SBIR matching fund program and its dedicated team have played a pivotal role in accelerating HeXalayer's growth and establishing cutting-edge R&D capabilities for our advanced graphene Li-ion battery technology right here in Kentucky,” said Harut Vardanyan, CEO & co-founder of HeXalayer. “Thanks to this invaluable support, we’ve been able to streamline our product development cycle and strengthen our intellectual property portfolio by building world-class, in-house capabilities at our Louisville facility. These advancements are essential to our mission of delivering next-generation, U.S.-based battery technologies that support the critical needs of the Department of Defense.”
To date, Kentucky SBIR/STTR-awarded companies have leveraged the state’s matching program to receive $7.4 in federal or private capital for every $1 in state funds. These businesses also have created more than 773 well-paying jobs, 90% of which have annual salaries over $50,000. Match recipients have 240 patents and generated more than $129.6 million in sales and licensing revenue. Kentucky has made 345 match awards to 157 unique companies since the program’s inception, leveraging $173.17 million in federal funding coming into the state.
“This was another highly competitive SBIR/STTR matching funds round made up of exceptional startups developing a wide array of promising technologies,” said David Brock, executive director of KY Innovation. “Kentucky’s matching funds program was a national bellwether for technology-based economic development when it launched and remains one of the most powerful initiatives anywhere in the United States for fueling early-stage, high-tech companies. We commend the awardees, as well as all of the other applicants, and look forward to the impact they will make on Kentucky’s economy of the future.”
More information on Kentucky’s SBIR/STTR matching funds program and awarded companies awarded is available at kyinnovation.com/sbir.
The SBIR/STTR-awarded companies investment and job creation build on the best five-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,200 private-sector new-location and expansion projects totaling over $36 billion in announced investments, creating more than 62,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $15 billion more than the next highest total.
The robust job creation has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund. In 2023, Kentucky recorded over 2 million jobs filled for the first time ever and has stayed above that number ever since.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Earlier this year, Site Selection magazine ranked Kentucky in the top five nationally and second in the South Central region for economic development projects per capita in its 2024 Governor’s Cup rankings. Site Selection also placed Kentucky second in the South Central region and No. 6 nationally in its 2025 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear also announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
Information on Kentucky’s economic development efforts and programs is available at NewKentuckyHome.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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