State-funded venture capital firm Connecticut Innovations has launched a $200m fund to stimulate the state’s bioscience sector.
Grants, equity investments and loans will all be available to bioscience-related ventures over the next ten years, following the passing of Senate Bill 842. The funds will be primarily be used to assist startups and university spin-outs cross the valley of death from the proof-of-concept stage and onwards, filling the gap that traditional venture funds steer away from.
The fund is part of a wider plan, which includes a $2bn government grant, passed in Senate Bill 840, to develop science, technology, engineering and maths (STEM) programmes at the University of Connecticut (UConn).
Claire Leonardi, chief executive of Connecticut Innovations, said: “I’m thrilled with the passage of these two bills, both of which will enable Connecticut to build on our state’s significant assets in the biosciences. Connecticut has exceptional universities, exceptional research and discoveries coming out of those universities, talented entrepreneurs developing exciting breakthroughs, and we’re home to some of the largest and most innovative health insurers in the world. The Bioscience Fund will enable the state to connect those pieces so they can work together to create and retain jobs, improve healthcare outcomes and lower costs.”