University of Rochester-affiliated VC fund Excell Partners has been selected to manage a state government-funded vehicle targeting local companies in sectors such as optics and life sciences.
Excell Partners, a VC fund affiliated to University of Rochester, is to manage a $25m vehicle intended to spur tech activity around Rochester in upstate New York, Democrat & Chronicle reported on Thursday.
The vehicle, dubbed Finger Lakes Forward Venture Capital (FLX) Fund, will be managed by Excell’s Technology Ventures division and funded by the New York State government.
FLX Fund will return 80% of its profits to state government-sponsored agency Empire State Development, with the remaining 20% allocated to Excell for reinvestment in the fund.
The vehicle will make investments ranging from $500,000 to $1.5m in early-stage rounds, backing local businesses in sectors including advanced manufacturing, optics, photonics, imaging, and life and material sciences.
To receive funding, companies must commit to keeping either their headquarters or 75% of employees within the region for at least three years from the time of FLX’s investment.
The vehicle is bound to target a private-to-public funding ratio of at least 1:1 for each investment, with a 2:1 ratio anticipated on average over its lifespan.
Theresa Mazzullo, chief executive of Excell Partners, said: “The FLX Fund is yet another example of how Governor Cuomo is making upstate New York more competitive. This fund will help to close the capital gap by providing funding that will help high-tech startups expand and grow.”
