US-based genome technology provider Illumina yesterday pledged to provide $100m to a newly formed, independently managed venture capital firm called Illumina Ventures over the next 10 years.
Illumina Ventures will invest in early-stage companies developing nucleic acid sequencing technology, and will target those working on technology that will grow the genomics ecosystem or which use genomics for health applications.
Nicholas Naclerio, who has spent almost six years as Illumina’s senior vice-president of corporate and venture development, is the new firm’s founder. Illumina will act as majority limited partner for the firm’s first fund, but Illumina Ventures has not disclosed plan to raise further cash.
Illumina has in the past been an infrequent VC investor, but it has picked up the pace recently, funding several companies in the last six months, including Grail, a cancer screening spinout that raised $100m in January, and genomics research company Human Longevity, which closed a $220m round last week.
Illumina also runs an accelerator that provides $220,000 in financing and instrument access to participating startups, and has formed an early-stage fund called Illumina Accelerator Boost Capital to invest in Illumina Accelerator graduates.
Jay Flatley, Illumina’s chairman and CEO, said: “Under Nick’s leadership, internal venture investing has worked well for Illumina, providing strategic insight and connections to key technologies and channels in our industry.
“Participating in an independent fund led by Nick that can leverage capital and know-how from other investors who share our strategic interests is an even more effective way for us to utilise Illumina’s capital to create incremental shareholder value.”