California creates $250m fund

The University of California system is setting up UC Ventures, which will manage a $250m fund to invest in research pursued by faculty and students at its campuses.

The fund will be independent and draw no money from tuition fees or the state. It will draw its cash from the system’s endowment, and will take a long-term view on return on investments.

The university system consists of 10 campuses, five medical centres and is affiliated with three national laboratories. It is also affiliated with more than 20 incubators and accelerators. In co-operation with these campuses, an independent advisory board will be set up, welcoming industry experts from Silicon Valley and other Californian business leaders. The composition of the advisory board is yet to be announced.

The news follows July’s announcement that the university system changed its rules for investments. Up until then, and for 25 years, the policy was one of prohibition to invest in spin-outs.

Jagdeep Singh Bachher, the university’s chief investment officer, said: “UC Ventures is the result of careful evaluation of best practices to develop the most effective investment vehicle to capture the economic value the University of California is creating through its pioneering research. Our goal is to build upon the technology commercialization efforts at UC while carefully managing potential risk exposures. We are confident an independent UC Ventures will achieve this.”