Pharmaceutical firms Celgene and Eli Lilly are to invest in a New York-based life sciences venture capital fund also backed by New York City’s municipal government.
The $150m Early-Stage Life Sciences Funding Initiative, which raised $50m more than its original goal, will be co-managed by venture firms Flagship Ventures and Arch Venture Partners, a VC fund which spun out from Chicago University’s technology transfer office two decades ago.
New York City’s Economic Development Corporation will provide $10m of the total, while Gelgene and Eli Lilly will provide the remaining $140m.
The fund was first announced in December 2013 by then NYC Mayor Michael Bloomberg with a view to improving the City’s standing as a biotech hub. Consequently, the fund will be directed towards NYC’s academic medical institutions and their associated spin-outs, as well as life sciences entrepreneurs operating within the area.
It is hoped the funding will generated 2,000 direct jobs in the life sciences sector by 2020, and expand the City’s development of therapeutics, medtech, diagnostics, and life science research and development.
Mark McDonnell, managing director at Arch, said: “Arch Venture Partners is excited to partner with the NYCEDC alongside New York’s industry leading companies and world-class research institutions to help identify life science technology concepts and bring them to fruition.
“For nearly three decades Arch has successfully identified and organized companies around leading scientific innovations nationally. We are eager to focus efforts in New York City.”
– A version of this article originally appeared in our siste publication, Global University Venturing.