Penn State Alumni Association has contributed $500,000 to a VC fund called 1855 Capital that has so far raised at least $10.5m to supply seed and early-stage businesses linked to the university.
The fund’s general partner is 1855 Capital Partners, which retains sole control of the investments and operations.
Local funding body Erie County Gaming Revenue Authority invested $500,000 in 1855 Capital Partners in January 2018, though it was unclear whether this was meant for the fund.
1855 Capital identifies, mentors and invests in Penn State-linked businesses in spaces such as IT, advanced materials, fintech, edtech, medical devices and healthcare. Ordinarily, it invests between $100,000 and $500,000 in return for equity ranging from 10% to 50%.
The vehicle does not back Penn State spinouts exclusively, though it prioritises commercialising the university’s intellectual property.
University-linked startups then take precedence, followed by alumni-founded businesses relocating to Pennsylvania, companies of strategic value to Penn State and alumni-founded companies from outside Pennsylvania.
Steven Wagman, president of Penn State Alumni Association, said: “We see this as a real opportunity to impact the entrepreneurial spark that drives students and alumni to make the world better.
“Partnering with 1855 Capital allows us to support the Penn State startup ecosystem in a very tangible way.”
