Several Universities Look to Unify Startup Investment Efforts to Support Regional, State Economic Prosperity

Over the last month, several universities have announced new initiatives that look to spur investments in university-related startups to support economic growth and prosperity within their region or state. These include efforts in Triangle Venture Alliance in North Carolina, Purdue Ventures in Indiana, and a partnership between Oregon State University and a local investment fund.

North Carolina

In North Carolina, four universities formed the Triangle Venture Alliance to provide equity-based seed funding to the alumni entrepreneurs from Duke University; The University of North Carolina – Chapel Hill (UNC-Chapel Hill); North Carolina State (NC State); and, North Carolina Central University. Triangle Venture Alliance will attempt to attract early stage capital by uniting and coordinating the efforts of each university’s alumni angel groups to source deals for university-related startups from all four universities. The new network will be supported by a $250,000 Regional Innovation Strategies (RIS) grant from the U.S. Economic Development Administration as well as the Blackstone Entrepreneurship Network. 

In addition to the announcement of Triangle Venture Alliance, UNC-Chapel Hill and NC State both announced new initiatives to spur early stage investments in startups with connections to their schools. NC State received a $1million gift from Robert and Lyn Andrews to establish the NC State Acceleration Fund as well as a three-month entrepreneurial boot camp (Andrews Launch Accelerator). Each year, NC State will make up to $50,000 in grants to undergraduate and graduate students as well as recent graduates. Andrews Launch Accelerator participants also will receive coaching from local entrepreneurs, office space and some pro-bono legal and other business services.

At UNC-Chapel Hill, university-related startups will have access to a new $10 million investment fund aimed at helping startups commercialize technology. Managed by Hatteras Venture Partners, a Durham-based venture capital firm, the fund will target investments in mostly regional life sciences and information technology companies, but will consider investments in other types of businesses. The university will commit up to $5 million to the fund with an additional $5 million coming from the UNC Health Care System.

Indiana

Purdue University created Purdue Ventures to serve as the overriding entity to manage $37 million in combined investment resources to further support Purdue-affiliated startups. Organized under the Purdue Foundry, the intent of the effort is to make it easier for entrepreneurs to apply for investment consideration to advance their startups. According to the press release, Purdue Ventures will oversee five funds:

• Ag-celerator - A fund to help launch startups based on Purdue plant sciences innovations or otherwise impacting the plant sciences.
• Elevate Purdue Foundry Fund - Operated jointly by the Purdue Foundry and Elevate Ventures, the fund expedites the translation of Purdue-based intellectual property to commercial sectors.
• Foundry Investment Fund - A sidecar fund that partners with other investors to fund companies that are based on Purdue technology or expertise in the areas of human and animal health and plant sciences.
• P3 Alliance - Utilizing an online presence, Purdue-related startup companies seeking angel-level investment can pitch their investment opportunity to pre-qualified participants in the P3 Alliance.
• Purdue Startup Fund - Partnership between the Purdue Research Foundation and University Development Office to maximize Purdue's commitment to serve others through the commercialization of innovations.

The Purdue Startup fund is a $10 million fund designed to increase seed capital available to investment-worthy startups and increase the generation and commercialization of intellectual property at Purdue as well as support Purdue's mission to serve the state of Indiana. It was launched in February of 2016.

Oregon

Oregon State University (OSU) announced a new partnership with Rogue Venture Partners – a Portland investment firm – to support “homegrown” investment capital across the state. The university will commit up to $4 million from its foundation, alumni and other investors. Rogue Venture Partners intends to raise up to $20 million for the new fund.

The new fund, however, is not required to invest in any companies that emerge from the university. Instead, Rogue and the university will work together to scout for investment prospects at OSU and a partner at Rogue will keep an office at the university two days a week to learn about OSU-developed technologies and advise faculty and students on their business prospects.