5 Central Coast Businesses Receive State Innovation Grants

California awards $2 million to 37 startups, including 5 on the Central Coast

Published on Mar. 6, 2026

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California Gov. Gavin Newsom announced $2 million in funding for 37 startups across the state, five of which are located on the Central Coast. The funding is through the state's Office of the Small Business Advocate's (CalOSBA) Innovation Grant Awards, which aims to invest in firms in health technology, clean energy, advanced manufacturing, artificial intelligence and other strategic sectors. Each Central Coast company received between $25,000 and $100,000 in grant funding.

Why it matters

The state's investment in these Central Coast startups reflects California's commitment to fostering innovation and entrepreneurship, especially in emerging technology sectors. The grants highlight the region's growing reputation as a hub for cutting-edge companies working on solutions to pressing environmental and social challenges.

The details

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 Ventura County companies include Deeper Breath, which is developing smart personal protective equipment (PPE) with embedded AI, and Health Trend Social, which uses AI and social determinants of health data to support holistic healthcare. The Santa Barbara County companies are Hikari Medical Technologies, Nereid Biomaterials, and Quantum Energy. Hikari is creating a wearable drug delivery device, Nereid is developing biodegradable plastics for the marine sector, and Quantum has built an energy impact analytics platform.

  • The funding was announced on March 5, 2026 by California Gov. Gavin Newsom.

The players

Gavin Newsom

The Governor of California who announced the $2 million in funding for 37 startups across the state, including 5 on the Central Coast.

Deeper Breath

A Ventura-based company developing smart personal protective equipment (PPE) with embedded artificial intelligence for defense, industrial and consumer use.

Health Trend Social

A Moorpark-based company that 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.

Hikari Medical Technologies

A Santa Barbara-based company 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.

Nereid Biomaterials

A Goleta-based company 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.

Quantum Energy

A Santa Barbara-based company that 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.

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What they’re saying

“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.”

— Gavin Newsom, Governor of California (Press Release)

The takeaway

The state's investment in these Central Coast startups highlights the region's growing reputation as a hub for innovative companies working on solutions to pressing environmental and social challenges. The diversity of the grant recipients, including women-led firms, also reflects California's commitment to supporting underrepresented entrepreneurs and fostering a more inclusive innovation ecosystem.