University of Arizona research is to benefit from a new initiative providing early-stage funding.
The University of Arizona is setting up a new non-profit company, Catapult Corporation, to invest in early-stage spin-outs based on research at the institution. The university is hoping to grow the donor-funded venture capital to $10m.
Launched through the university’s existing Tech Launch Arizona initiative, the corporation has already secured the promise of matched funding up to $2.5m from the Thomas R Brown Foundations. The foundations are a philanthropic outfit in Tucson, Arizona, focused on democracy and welfare of society through preserving a free market economy.
Catapult (or Cat Corp) is built to be a self-sustaining evergreen fund. Any return on investment is first channelled to the University of Arizona Foundation, which will put cash up to $4m back into the investment pool. If the return is bigger than $4m, 15% returns to the pool and 85% is distributed to a campus college as directed by the donor.
It will be led by a board which will identify the most promising ventures from faculty and students each year, and allocate funding. The ultimate aim is to bring more of Arizona’s research to market.
Ann Weaver Hart, president at University of Arizona, said: “Our commitment to expanding University of Arizona’s reach means moving outward into our communities. Cat Corp will be a key way we achieve this goal as investing in startups can strengthen Arizona’s economic development for years to come.”
