Purdue is also making available two new entrepreneurs-in-residence positions.
Purdue University has announced a three-year fund totalling $2m and called Elevate Purdue Foundry Fund. The fund will be managed by Purdue Foundry and Elevate Ventures.
On top of the fund, the university is also creating two new entrepreneurs-in-residence positions in association with Elevate Ventures and the Indiana Economic Development Corporation.
Funding awarded through Elevate Purdue will be based on two tiers, a black award and a gold award. The black award is a $20,000 convertible non-recourse note, while the gold award will offer the companies $80,000 debt financing or equity funding. Companies become eligible for the gold tier if they successfully complete all milestones mandated as part of receiving a black award.
Six to eight companies are anticipated to be awarded the gold tier each year. Recipients will be selected by an investment committee made up of three Elevate Ventures and three Purdue Foundry members.
Greg Deason, executive vice-president of Purdue Foundry, said: “Two levels of funding are available to support startups that have licensed Purdue University intellectual property or that will leverage other Purdue assets such as research collaborations. Like the Foundry Investment Fund established earlier this year through an agreement between Cook Medical Group and Purdue Research Foundation, this fund, along with the addition of entrepreneurs-in-residence, will further expedite the translation of life-changing intellectual property to the commercial sectors.”
