updated: 5/1/2012 7:20:16 AM

Fund to Focus on Early Stage Life Sciences Ventures

InsideINdianaBusiness.com Report

The chief executive officer of BioCrossroads says the economy for early-stage life sciences companies still has not fully recovered. David Johnson says it's a tough time for those companies to raise capital and the new $8.25 million Indiana Seed Fund II should help fill that hole. He tells Inside INdiana Business the fund, which has seven investors, is a sign that there are good ideas in Indiana "that can go the distance and are worth getting started."

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Originally Posted April 30, 2012

News Release

INDIANAPOLIS, April 30, 2012 -- BioCrossroads announced today the formation of the Indiana Seed Fund II (the Fund), an early-stage capital fund focused on identifying, creating and developing the next generation of Indiana-based life sciences companies. The $8.25 million fund is a follow-on to the Indiana Seed Fund I, a $6 million fund that is now fully committed in a portfolio of 12 Indiana life sciences companies.

Managed by BioCrossroads, the Indiana Seed Fund II is a result of a unique public-private collaboration of corporate, university and philanthropic investors including BC Initiative (BioCrossroads' for-profit / investment entity), Eli Lilly and Company, the Richard M. Fairbanks Foundation, Inc., Indiana University Research and Technology Corporation, Purdue University, the University of Notre Dame, and WellPoint.

"The fact that this impressive group of institutional investors has come together to form a new Indiana Seed Fund is a terrific testament to the strength of our life sciences sector," said David L. Johnson, president and CEO of BioCrossroads. "Thanks to these stakeholders, we're now in position to invest in some of the most promising start-up companies we can find to advance this sector's next round of success."

The Fund will invest an average of $500,000 in early-stage biotechnology, pharmaceutical, medical device, diagnostic, ag-biotech and health information technology products and platforms, continuing BioCrossroads' focus on promising companies formed around innovative ideas. Managed by BioCrossroads' experienced professional team, the Fund has an investment committee comprised of individuals with start-up management and life sciences investment experience, bringing years of collective knowledge to Indiana life sciences companies.

"This is outstanding news for the Indiana life sciences community," said Darren Carroll, vice president of Corporate Business Development for Eli Lilly and Company and member of the Indiana Seed Fund II Investment Committee. "In a time of continuing difficulties in the financing market, this group was able to raise a follow-on fund that is larger and has more diverse investors than its predecessor. We're looking forward to the next generation of groundbreaking ideas and entrepreneurs."

The Fund will seek to invest in early stage life sciences companies progressing towards defined milestones to secure a Series A financing, strategic partnership or co-development agreement. Companies must illustrate proven management teams, owned or licensed technology, intellectual property, and a demonstrable and validated market need.
"There are so many important discoveries and ideas in science that simply will not make it to market without this type of capital -- a critical component to help Indiana companies move their technologies forward," added Nora Doherty, vice president-Finance of BioCrossroads and managing director of the Fund.

Indiana's life sciences sector has received national recognition as a life sciences center. In June 2009, The Economist said, "Though every state wants to be a hub in the life sciences, Indiana actually is one..." In August 2011, a Wall Street Journal article called Indianapolis a hotbed of activity for the life sciences, citing the state's 825 life sciences companies and 8,800 new jobs.

About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana's initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region's existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, OrthoWorx and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.

Source: BioCrossroads

News Release

INDIANAPOLIS, April 30, 2012 -- At a press conference today announcing the Indiana Seed Fund II (ISFII), BioCrossroads also launched the inaugural BioCrossroads New Venture Competition presented by Krieg DeVault, an early stage business competition open to life sciences (biotechnology, pharmaceutical, medical device, diagnostic, ag-biotech) and health information technology companies holding a substantial nexus to Indiana and a high potential for attracting investment capital.

In addition to a cash prize of $25,000, the winner of the competition will have access to the Indiana Seed Fund II staff and the fund's network of resources to provide business planning and early-stage strategic support. They will also have the opportunity to make a presentation to the ILSFII investment committee.

The winner will be announced at the Indiana Life Sciences Summit Networking Reception on October 22, 2012. Second and third place companies will be awarded cash prizes of $15,000 and $10,000 respectively. There will also be a Pre-Venture prize of $10,000 for a promising technology that is very early in its development.
The competition will be comprised of an initial application process followed by ISFII staff review of all applications, interviews of semi-finalists and the selection and invitation of the top five plans to present to a panel of expert judges. Applications are available at www.biocrossroads.com and must be submitted by Tuesday, July 31, 2012. Companies invited to submit full business plans must do so by Friday, August 24, 2012.

Early-stage biotechnology, pharmaceutical, medical device, diagnostic, ag-biotech or health information technology companies developing innovative products and platforms are eligible to apply for the New Venture Competition. For consideration, companies must either be Indiana-based or be able to demonstrate a significant Indiana presence.

CHV Capital, Inc., Credit Suisse, Indiana Health Information Exchange, and StepStone Business Partners are sponsors of BioCrossroads New Venture Competition presented by Krieg DeVault.

About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana's initiative to grow, advance and invest in the life sciences, a public-private collaboration that supports the region's existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, OrthoWorx and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.

Source: BioCrossroads

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