Virginia Polytechnic Institute and State University (Virginia Tech), through its foundation, and healthcare provider Carilion Clinic have raised a $15m VC fund for the local area in their third such collaboration, according to the Roanoke Times.
The VTC Innovation Fund is aiming to back seven to 10 startups around Blacksburg and Roanoke over the next four years.
About 60% of the investments will be in the life sciences industry and most will be based in Virginia. If they are in another state, the companies must have some tie to the university or Carilion.
The fund will be managed by James Ramey and Scott Horner at Middleland Capital.
Timothy Sands, president of Virginia Tech, said: “When we looked at our grand vision going forward, we see that the innovation ecosystem has a few holes in it. One is in the venture capital area. It is not the only one, but it is one we identified that we could do something about.”
Nancy Agee, chief executive of Carilion, said: “The idea that we have responsibility to provide some stimulus for economic activity is real. We really need the whole economic ecosystem to be vibrant so we can continue to grow and serve those needs as well.”
Virginia Tech and Carilion previously jointly formed the NewVa Capital Partners fund in 2004. The two then formed Valleys’ Ventures in 2013, but that fund reportedly went dormant after just two investments.
– This article first appeared on our sister site Global University Venturing.