The UChicago Startup Investment Program will offer qualifying companies a maximum of $500,000 for a series A funding round.
Chicago University has launched UChicago Startup Investment Program, a $25m initiative to co-invest in spinouts and startups led by faculty, students, staff and alumni.
The capital comes from the university’s $7.1bn endowment, managed by the Office of Investments, which has partnered the Polsky Center for Entrepreneurship and Innovation to run the program.
UChicago Startup Investment Program will provide series A funding for companies that meet several requirements. It will also offer follow-on capital to well-performing companies.
Besides demonstrating a significant affiliation to Chicago University, qualifying companies must also have completed at least one program at Polsky Center, such as Polsky Accelerator or Incubator, which provide coaching, office space and other resources to entrepreneurs.
Businesses must also have an established VC firm willing to lead the investment round and sit on the board of directors. The Polsky Center will first vet suitable applicants, who will then be referred to the Office of Investments for the next stage in the funding process.
The program, which will have a ten-year life span, is expected to fund three or four new companies a year as it looks to attract more venture firms to the city, UChicago News reported on December 2.
Each company will either receive a maximum of $500,000, or 20% of the series A round – typically sized at between $3m-$5m in today’s market – depending on whichever amount is less.
Robert Zimmer, president of the university, said: “By co-investing in new companies that have independent investments by established firms, we will enhance university-wide support for startups while encouraging venture partners to explore investment opportunities coming out of the university.”
