California Awards $2 Million in Innovation Grants to 37 Startups
March 31, 2026 · 2 min read
Jared Klein
Governor Gavin Newsom announced more than $2 million in Innovation Grant Awards for 37 startups across 17 California counties, with individual awards ranging from $25,000 to $100,000. The grants target breakthrough companies in health technology, clean energy, advanced manufacturing, and artificial intelligence.
The awards flow through California's Office of the Small Business Advocate (CalOSBA) and its Accelerate California program — the nation's first statewide initiative directly investing in innovation-based businesses while promoting equitable access to entrepreneurship capital.
Who Won and What They're Building
More than 70 percent of this round's recipients are pre-revenue companies, representing technologies before they reach market. Half are women-owned businesses. Seven of the recipient companies already hold patents, with 27 additional patent applications currently in progress — signaling that CalOSBA is backing founders with serious technical credibility, not just pitch decks.
The 17-county geographic spread is deliberate. Accelerate California operates through 13 regional hubs across the state, connecting entrepreneurs in both rural and urban communities to technical support, collaborative networking, and federal, state, and private funding sources.
A Track Record Worth Watching
Since launching in 2023, the Accelerate California hubs have supported over 29,000 small businesses and startups, helping create more than 3,200 jobs. The Innovation Grant Awards are one component of a broader ecosystem that includes mentorship, federal grant navigation assistance, and connections to private capital.
For founders in other states, the program offers a template. As federal SBIR and STTR programs face administrative uncertainty, state-level innovation grants provide an alternative funding runway — particularly for pre-revenue companies that may not yet qualify for federal awards.
How Founders Can Access Future Rounds
Applications for future Innovation Grant Awards cycle through the regional Accelerate California Hubs. Founders should identify their nearest hub through CalOSBA's website and begin the intake process to be positioned for the next round. Grant seekers can track state innovation programs and deadlines on grantedai.com.
For a closer look at how state innovation grants compare to federal SBIR funding, visit the Granted blog.