Berkeley Frontier Fund will provide growth-stage funding to companies emerging out of the University of California campus, and has already made four investments.
Berkeley Frontier Fund, a US-based venture capital fund, launched today to invest in companies founded at University of California (UC), Berkeley using a philanthropic model that aims to give back $25m to the institution.
The $50m growth-stage fund will make its first contribution of $2.5m to UC Berkeley in the fourth quarter of this year, with the anticipated $25m total to be donated over the fund’s lifetime. A donation committee will allocate money to programmes across campus.
Berkeley Frontier Fund was founded and capitalised by alumni, and is led by Richard Chan. Rich Lyons, chief innovation and entrepreneurship officer at UC Berkeley, is providing campus oversight, while members of the university’s board of trustees, dean and department chairs are also lending their support.
Lyons said: “This extraordinary new Berkeley Frontier Fund is one of the most innovative ways for a public school to engage in the new age of entrepreneurship and is pioneering a new way for successful alumni to contribute back to Berkeley.
“The incredible talent and opportunity within the UC Berkeley ecosystem gives the fund a broad range of options when it comes to investment.”
The fund has invested in four companies to date: AyarLabs, Databricks, Mammoth Biosciences and Neurona Therapeutics.
Berkeley Frontier Fund has a contractual relationship with the university that allows it to partner with tech transfer office IPIRA on rights.
Chan said: “BFF aims to provide a meaningful and sustainable revenue source for Berkeley. We are pioneering a way for alumni to give back. From the fund’s general partners to the investors to the company founders, every stakeholder in BFF contributes to the cause.
“With our unique approach, BFF is acting as a conduit for UC Berkeley to benefit from all the entrepreneurship on campus. I envision this alumni-driven initiative to bring capital for labs, housing, equipment and more to help address the school’s enduring challenges.”
Loraine Binion, treasurer at the UC Berkeley Foundation and a member of the BFF donation committee, added: “Berkeley Frontier Fund makes these direct contributions plus a one-of-a-kind front-loaded donation component. That means 5% of total fund commitments will be donated within the first year of operation, making BFF a standout amongst all other donation efforts.”
