California will distribute more than $2 million in innovation grants to 37 startups across 17 counties — including Santa Barbara and Ventura — to support the development of new technologies and business solutions, Governor Gavin Newsom announced on March 5, 2026.
The funding is provided through the California Office of the Small Business Advocate (CalOSBA) and supports companies developing innovations in sectors including health technology, clean energy, artificial intelligence, and advanced manufacturing.
According to the state, half of the selected companies are women-owned, highlighting an effort to expand opportunities for a more diverse group of entrepreneurs.
State officials say the program aims to strengthen California’s innovation economy while helping small businesses grow and create jobs. Individual grants range from $25,000 to $100,000 to support continued development and commercialization of new ideas.
NEW: @CaliforniaOSBA is awarding grants to 37 small businesses to help power the next generation of innovators.
California continues to be a global leader in innovation and entrepreneurship, and these investments reflect our commitment to boosting economies across the state.
— Governor Gavin Newsom (@CAgovernor) March 5, 2026
CalOSBA officials say innovation plays a significant role in California’s economy. The state’s technology sector alone supports about 4.2 million jobs, about roughly 20% of total employment statewide.
California was the first state to directly invest in innovation-focused businesses owned by diverse founders, according to Newsom’s office.
Many of the funded startups are still in early stages of development. According to the governor’s office, more than 70% of the companies are pre-revenue, meaning their technologies have not yet reached the commercial market.
The grant recipients come from a wide geographic range, representing both urban and rural communities across 17 counties in California.
State officials say the program has invested about $16.5 million statewide so far to support innovation-driven businesses.
Several grant recipients are located on California’s Central Coast, including startups based in Goleta, Santa Barbara, and Ventura County.
Goleta-based Nereid Biomaterials received funding for its work developing biodegradable materials for marine use. The company’s technology is designed to reduce microplastic pollution by allowing certain marine equipment to naturally break down after completing its service life.
In Santa Barbara, Hikari Medical Technologies LLC is developing a wearable device designed to monitor and deliver medication with precise dosing. Another Santa Barbara company, Quantum Energy, is building an analytics platform to help clean-energy developers evaluate projects more efficiently.
Ventura-based Deeper Breath received funding to develop artificial-intelligence-powered protective equipment. Moorpark company Health Trend Social LLC is working on tools that analyze social determinants of health to help support healthcare systems.
The grants are part of CalOSBA’s Accelerate California initiative, a statewide effort to support innovation-driven businesses. The program operates through a network of 13 innovation hubs that provide mentorship, technical guidance, networking opportunities, and connections to funding sources.
Since launching in 2023, the initiative has supported more than 29,000 startups and small businesses. Participating companies have helped create over 3,200 jobs, filed 128 patents, and secured more than $379 million in equity funding.
Comments
0 Comments deleted by Administrator