A University of Tennessee Research Foundation-owned company, Genera Energy, is raising $15m for its Biomass Innovations Fund I.
A report distributed by Venture Nashville Connections said Genera Energy was raising money from third parties.
The fund will have a "strong preference" for investing in Tennessee-based companies, but also will consider investments that "attract out of state technologies to Tennessee," the report quotes Barry Davis, Genera’s chief financial officer.
Genera Energy LLC was formed in 2008, largely as a vehicle to leverage funds for the University of Tennessee’s Biofuels Initiative.