Ask any new entrepreneur in Michigan what the state needs most right now, and most will say more money. Money for capitalization and commercialization and all of the facets that take new companies from idea to profitability.
This stretch of the business plan where so many start-ups go to die is called "Valley of Death" by venture capitalists and biomedical researchers.
But the University of Michigan's Life Sciences Institute has launched a program to help cull the business deaths called the Innovation Partnership.
The idea is to provide critical funding to new companies with promising biomedical discoveries and help them get their innovations to the marketplace. So far $1.6 million has been raised from philanthropists for the fund, which has a goal of raising $10 million over the next five years, for research that combats diseases like cancer and diabetes.
"Although there are plenty of breakthroughs coming out of university biology programs across the country, there isn't enough money to fund all the good ones," says Dr. Jim Niedel, managing director of New Leaf Venture Partners, a health-care venture investing firm. "The Innovation Partnership is a way of bridging that gap."
Priority will be given to proposals that address critical medical needs and appear to have high commercialization potential. The first Innovation Partnership companies are expected to receive the funding, ranging from $200,000 to $500,000 apiece, by the end of the year. The Life Sciences Institute will provide lab space, equipment and scientific support equivalent to a 50 percent-or-more match on donor-provided funds.
Source: University of Michigan
Writer: Jon Zemke
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