Governor Newsom just announced over $2 million in funding for 37 startups across California, and if you’re an early-stage founder struggling to break through, this could be a game-changer for your business.

Through the California Office of the Small Business Advocate’s Innovation Grant Awards, entrepreneurs across 17 California counties are receiving funding ranging from $25,000 to $100,000 per company. The state is specifically backing breakthroughs in health technology, clean energy, advanced manufacturing, artificial intelligence, and other strategic sectors. What makes this announcement particularly cool? Half of the funded businesses are women-owned, and the grantees represent both rural and urban communities across the state.

More than 70 percent of the grant recipients are pre-revenue companies, meaning California is betting big on the earliest stages of innovation, before products even hit the market. Even at these early stages, the companies have serious credentials. Seven patents have already been awarded to grant recipient companies, with another 27 patent applications currently in progress.

“Our office is working to diversify the state’s innovation economy by recognizing early-stage businesses and founders from all backgrounds struggling to break through barriers to capital,” said Elmy Bermejo, Director of CalOSBA.

Some of the recent awardees show the range of innovation happening in California right now. Solir Energy Solutions, based in Auburn and founded by Diane Eastman, developed ThermeShade, an advanced window technology that reduces solar heat gain in commercial buildings while maintaining natural light. The company received a $75,000 grant to commercialize their phase 2 products and expand their market.

Riverside-based Super Foam Corp received $100,000 to accelerate their patented foam formulation, which offers twice the impact protection while using an eco-friendly manufacturing process. Meanwhile, Nereid Biomaterials in Goleta got $50,000 to continue developing ocean-friendly biomaterials that naturally biodegrade instead of shedding microplastics.

These grants are part of Accelerate California, the nation’s first statewide program directly investing in innovation-based businesses. The program operates 13 hubs across the state that provide technical support, networking opportunities, and access to various funding sources. Since 2023, the hubs have supported over 29,000 small businesses and startups, creating more than 3,200 jobs and helping businesses secure more than $379 million in equity.

If you’re working on breakthrough technology, a new product, or an innovative business model, the Accelerate California Innovation Grant program is still open to applications. You can connect with one of the 13 Accelerate California Hubs to access mentorship, technical assistance, and potential funding opportunities. California’s making it clear that supporting the next generation of innovators isn’t just good economics, it’s a state priority.