University of Delaware-backed science incubator Delaware Innovation Space has started a VC vehicle called First Fund offering startups up to $75,000 in convertible notes.
Delaware Innovation Space, a US-based science incubator backed by University of Delaware, has established a new VC vehicle of undisclosed size to support businesses looking to move into its space.
Companies backed by the fund, titled First Fund, will receive a 36-month convertible note for up to $75,000 which matures at a 20% conversion discount in qualifying financing rounds sized at $500,000 or higher.
The move is intended to reduce the barriers-to-entry for science-focused startups, which often face significant costs early in development in order to conduct specialised operations.
Startups hoping to secure capital through the scheme must have been founded less than three years ago and cannot have raised more than $500,000 in funding before applying.
The vehicle is open to businesses from the healthcare, industrial biotechnology, advanced materials, nutrition, renewable energy and chemical ingredients segments.
Delaware Innovation Space launched in 2017 to provide science businesses with access to multi-use wet laboratories and technical equipment alongside expertise and specialised programming.
In addition to University of Delaware, the nonprofit initiative is also sponsored by Delaware’s state government and DuPont Electronics & Imaging, a subsidiary of speciality chemicals and materials supplier DowDuPont.
William Provine, president and chief executive of Delaware Innovation Space, said: “Raising funds for scientific startups can take in excess of 12 months in today’s economic climate, delaying the start of critical work by more than a year.
“First Fund provides science entrepreneurs a mechanism to start critical lab and business development work today, getting them to successfully reach early important business milestones in rapid fashion.”
