University of Utah establishes venture fund

The University of Utah has become the latest research-intensive institution in the US to set up a venture fund, partnering with local venture capital firm Epic Ventures to create University of Utah Ventures.

The fund will invest in early-stage companies in various sectors, including software, life sciences and fintech. The university did not clarify the size of the fund. A regulatory filing registering the fund last month shows no money had been secured by that point.

The partnership between the university and Epic Ventures was facilitated by the Utah Venture Hub, which supports faculty in setting up spinouts. The university formed four new spinouts in the latest academic year.

The University of Utah expects the fund to leverage the institution’s $700m research funding and to replicate earlier success stories such as Recursion Pharmaceuticals, a biotech spinout set up in partnership with Epic Ventures and now trading on Nasdaq with a market cap of more than $1.8bn.

The university also hopes the fund will build on support from the Utah Innovation Fund, set up by the state government, to give startups from the institution an additional boost.

University of Utah Ventures joins a growing list of venture funds set up by the most research-intensive universities in the US, of which a third currently have their own investment vehicle.

Jim Hotaling, who runs the Utah Venture Hub, said: “The fund is viewed as a major milestone in the journey of the University of Utah to become a leader in the innovation and commercialisation space. The fund will provide unique opportunities for university-affiliated startups, faculty spinouts and external entrepreneurs seeking to capitalise on the strategic value of the U’s resources and Epic’s industry expertise.”

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