Venture capital fund grows ability to help more companies

Southwest Michigan First’s Life Science Fund recently welcomed a new investor.

That investor’s name is confidential, and he or she is just one of those being sought to round out the fund, says Patrick G. Morand.

He is actively seeking new investors for the fund that provides equity investment to life science entrepreneurs committed to establishing a business in Southwest Michigan.

The fund established in 2005 already has invested its initial $50 million in early stage life science companies, which has precipitated the call for new investors.

The Life Science Fund also has the capability to give direction and strategic advice to start-up companies, to support them with industry expertise. Information on regulatory strategy, reimbursement planning, exit strategies and early stage business advice is offered. As it invests the fund typically takes two seats on the company’s board to provide advice and guidance. The fund helps recruit executives, professionals and outside board members as the company grows and develops.

Initial investments can range from $500,000 to $3 million. Those receiving funding so far, are:

• Metabolic Solutions Development Co., which is developing innovative therapeutics for the treatment of diabetes.

• Micronics, Inc., a company developing products for disease detection, diagnosis and treatment monitoring.

• Monteris Medical, which is pioneering a medical device that uses focused high-intensity laser energy to heat and destroy tumors from the inside out.

• NephRx Corporation is a biotechnology company dedicated to the discovery and development of therapeutic products for the treatment of kidney failure diseases of the gastrointestinal tract.

• RealBio Technology, Inc., a company dedicated to the development and commercialization cell and tissue culture technology to improve life sciences research.

•  Tolera Therapeutics, Inc., which is developing and commercializing therapies for the immune suppression and immune modulation markets.

• Vestaron Corporation, a developer of the next generation of proprietary insecticide products based on spider-venom peptides.

When the Southwest Michigan First’s Life Science Fund was formed it recruited a scientific advisory board qualified to determine if a beginning company had solid prospects. It drew form former heads of the National Institutes of Health Vaccine Research Center, research and development at Pharmacia and chief science officers from Fortune 500 companies.

Southwest Michigan First’s Life Science Fund is believed to be the largest sum of community-based private capital ever to be raised and managed by an economic development organization.

Writer: Kathy Jennings
Source: Patrick G. Morand, Southwest Michigan First’s Life Science Fund