Two local firms are now in the running for venture capital backing after winning an award celebrating the region's best technology firms.
Video analysis firm Scyron, based in Edgbaston, and skills management business Silver Lining Solutions, from Rugby, were the winners of the inaugural Connect Midlands Investment Challenge.
Both firms are now in discussion with competition backers Midven and Catapult, which may lead to an offer of funding.
Scyron was founded in 2002 after patenting its video analysis technology. This technology has been used to develop a portfolio of products now selling into the UK and US security market.
Scyron's products are used to automatically analyse video footage for significant events, doing away with the need for manual monitoring of surveillance systems.
The systems alerts operators to certain events and archives selected digital information, data and pictures on hard disks.
Silver Lining Solutions was formed in 1999 as a pioneer in the field of skills management technology. Its purpose was to enable organisations to test the skills of employees and direct precise learning interventions thus reducing unnecessary training costs.
SLS's products have more than 20,000 users with customers ranging from Orange, O2, West Midlands Police and the NHS.
Nicholas Moate, investment manager at Midven, said: "This challenge has been great news for the region, as it has encouraged entrepreneurs to search their business souls and challenge themselves to try and win the investment.
"The nature of this competition meant that even those who were not successful in raising funding still benefit from the experience. I hope that by taking part, entrepreneurs have been able to learn, enabling them to be successful next time they face an investor."
The announcements were made at the annual Connect Midlands Investment Conference held at the East Midlands Conference Centre.
CMIC provides a platform for developing technology companies looking for investment of between #500,000 and #5 million to meet high net-worth individuals and corporate financiers looking for investment opportunities.
Rob Carroll, managing director of Catapult, said: "We have been very happy to support this exciting new initiative".