Biotech startups in the Hoosier State now have a new source of funding for innovations at the early stage of development.
BioCrossroads on Wednesday announced a $9 million seed fund. It’s the third fund for the public-private partnership, which formed to support the growth of the life sciences industry in Indiana. The latest fund will invest broadly in the life sciences, including health IT and agricultural biotechnology.
The new fund has already pumped cash into two Indiana startups. Indianapolis-based Scioto Biosciences received a $500,000 investment to support its preclinical research of new microbiome drugs, BioCrossroads says. That investment follows a $1.8 million Series A round of financing that Scioto closed in May. BioCrossroads says it also invested $250,000 in Animated Dynamics, a startup at Purdue University that is developing a diagnostic that tests for chemotherapy sensitivity. In 2016, Animated Dynamics closed its $1.7 million Series A financing.
Investors in Indiana Seed Fund III include Eli Lilly (NYSE: LLY), Indiana University, Richard M. Fairbanks Foundation, Regenstrief Foundation, Walther Foundation, University of Notre Dame, and BCI, the for-profit affiliate of BioCrossroads that manages the fund. The new fund follows the second BioCrossroads fund, which raised $8.25 million for seed-stage investments. BioCrossroads says that since 2005, it has raised nearly $25 million in seed funding that has been invested in 24 startups. Those companies have gone on to raise more than $400 million in additional financing.
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