By Jorge Mercado Thursday, March 5th, 2026

California Gov. Gavin Newsom announced $2 million in funding for 37 startups across the state, five of which reside on the Central Coast.

The funding is through California’s Office of the Small Business Advocate’s (CalOSBA) Innovation Grant Awards, as the state is looking to invest in firms in health technology, clean energy, advanced manufacturing, artificial intelligence and other strategic sectors. Each firm received funding ranging from $25,000 to $100,000.

Of the five Central Coast-based companies to receive an award, three are located in Santa Barbara County, while two are in Ventura County.

The two Ventura County-based companies include Ventura-based Deeper Breath and Moorpark-based Health Trend Social.

Deeper Breath, which is working on developing smart personal protective equipment (PPE) with embedded artificial intelligence for defense, industrial and consumer use, received a $50,000 grant.

Health Trend Social, which supports holistic healthcare within communities and disadvantaged populations by integrating Social Determinants of Health data with AI to help healthcare facilities comply with mandated measures, received a $25,000 award.

The three Santa Barbara County companies include Hikari Medical Technologies, Nereid Biomaterials and Quantum Energy. 

Santa Barbara-based Hikari Medical, which is developing a minimally invasive precision drug dosing and monitoring wearable device that provides personalized control over when, where, and how much medication is released in the body, and Goleta-based Nereid, which is developing plastics for the commercial marine sector that degrade rapidly into harmless carbon dioxide and water in the ocean, avoiding microplastic pollution while maintaining functionality during use, both received a $50,000 grant.

Santa Barbara-based Quantum Energy, which has developed an energy impact analytics platform to help clean energy developers reduce project delays, costs and risks and help corporate energy buyers procure projects that financially pencil and make maximum impact, received the largest award of any Central Coast-based company, nabbing $100,000 in state funding.

“California continues to be a global leader in innovation and entrepreneurship. Today’s investments reflect the state’s commitment to help all, boosting local economies through new small businesses in our communities across the state. These awardees represent the best and brightest — and the rich diversity of talent and perspective that makes California’s economy stronger and prosperous,” Newsom said in a press release.

More than 70% of the company’s to receive grants are pre-revenue, highlighting the state’s intent to invest in innovation before products reach market. 

Nearly half of the companies to receive a grant are women-founded companies, including Nereid, which is led by Alyson Santoro and Melissa Omand. The company will be using the funding to continue testing with partners like the Benioff Ocean Science Library and the Channel Islands National Marine Sanctuary, according to the press release.

A link to all the grant recipients can be found at calosba.ca.gov/wp-content/uploads/2025-Innovation-Grant-Winners.pdf. 

email: [email protected]