Accelerator Corporation, a US-based biotech investment and management company, has attracted a total of $51.1m for its Accelerator IV fund. The three major investors’ cash, Eli Lilly, Pfizer Venture Investments and Johnson & Johnson Development Corporation, make up $50m of the investment.
The three pharmaceutical companies and other existing investors Alexandria Venture Investments, WRF Capital and Arch Venture Partners, are joined by two new strategic investors. These are Harris & Harris, a venture capital firm, and The Partnership Fund for New York City, an evergreen fund by the city’s business and finance leaders.
The size of the latest fund means Accelerator will be expanding its operations from Seattle to New York City. Its aim is to identify and fund spin-outs from New York’s research institution. In particular, it will work with the Albert Einstein College of Medicine of Yeshiva University, Columbia University, Icahn School of Medicine at Mount Sinai, Memorial Sloan Kettering Cancer Centre, New York University, Rockefeller University, and Weill Cornell Medical College.
Accelerator began operations in 2003, and since then has developed 12 early-stage biotechs in Seattle. Its partners in the emerald city include Washington University, as well as the Institute for Systems Biology, the Benaroya Research Institute at Virginia Mason, Infectious Disease Research Institute, Pacific Northwest Diabetes Research Institute, Puget Sound Blood Centre Research Institute, Seattle BioMed, and Seattle Children’s Research Institute.
Thong Le, chief executive officer at Accelerator, said: “There is a funding gap for innovators looking to build new companies, as more and more venture investors are turning their attention to de-risked, later-stage developmental therapies instead of early research. We have had tremendous success in bridging this gap in Seattle, with more than half of our companies graduating to successful venture rounds and achieving development successes. We recognise a similar gap in New York City where funding is available for developed companies but in short supply for early-stage research, and we look forward to this strategic expansion with our new round of committed capital.”
