AHA expands venture philanthropy accelerator strategy to help life science startups survive

from MedCity News by Stephanie Baum

A little more than a year ago the American Heart Association launched an accelerator to fund biotechnolgy and medical device startups to fill a crucial gap in research funding caused by the increasing hesitance of investors to risk support on early-stage innovation. Now, it’s getting ready for a $2 million fundraising round to invest in two companies by the end of the year. It’s also working with sister organizations and mission-driven investment organizations to identify areas of common interest.

In a phone interview with MedCity News, Ross Tonkens, the director of the Science & Technology Accelerator,and Major Gifts Officer Mark Germano said they’re  forming a group of donors who can provide expertise to screen applications. These donors have investment backgrounds steeped in biotechnology, drug development and medical devices. They also have expertise in legal issues, commercialization, IP, regulatory, clinical trial design and conduct issues. In a lot of cases, these are people who have had personal or close contact with people who have had cardiovascular disease or a stroke and want to see things move from the [lab] bench to bedside.

In the past year, says Tonkens, it has created a network of collaborative investors from other nonprofit foundations where there’s a strong likelihood that their interests would align. Tonkens said it’s working with 16 sister foundations such as the American Cancer Society and Diabetes Foundation to identify areas of common interest for collaborative investment. For example, a company developing a diagnostic for cardiovascular disease may also have applications for cancer. In addition to sister foundations, it is also looking at mission related investment organizations like BioMotiv — a for-profit division of the Herrington Project for Discovery and Development in Cleveland, Ohio. BioMotiv is aggressively looking for profit.

for complete article... http://bit.ly/13x8wdh

Public Policy Institute releases new report on New York's bioscience sector

ALBANY, NY (05/10/2012)(readMedia)-- The Public Policy Institute (PPI), the research arm of The Business Council of New York State, today released an in-depth study on the challenges in attracting and retaining private-sector jobs and companies in New York's lucrative bioscience sector.

Based on interviews with 30 industry experts as well as existing research, Cultivating the Next Generation of Discoveries and Development in New York Bioscience explores the opportunities and barriers facing companies in various stages of development and offers three public policy recommendations to foster public-private partnerships and make New York more competitive with other states:

• Create a Governor's Council to spearhead development and marketing of the state's bioscience industry.
• Establish a Small Business Innovation Research matching grant program for bioscience companies as well as a dedicated Biosciences Commercialization Fund.
• Increase the amount of affordable incubator and lab space for startups and early-stage bioscience companies.

The PPI report noted that the bioscience industry supports a total of 250,000 jobs – including 66,568 in the industry itself – in New York State, generating $5.3 billion in wages and $309 million in state income taxes. The report also noted that bioscience attracted substantial research funding to the state. In 2010 alone, research funding included $562.8 million from the Centers for Disease Control and Prevention, $491.9 million from the National Science Foundation, $32.8 million from the Agency for Healthcare Research and Quality and $4.5 million from the National Institutes of Health.


*The article links to the full report (which is free)
http://readme.readmedia.com/Public-Policy-Institute-releases-new-report-on-New-Yorks-bioscience-sector/3892676

New Law Raises Funding Hopes For Startups, Worries Over Fraud

Please see article/audio from NPR.ORG
http://www.npr.org/blogs/alltechconsidered/2012/03/29/149620312/new-law-raises-funding-hopes-for-startups-worries-over-fraud

The Jobs Act would clear the way for new companies to advertise that they're looking for investors, and it would let anyone invest in privately held businesses, making it a lot easier for startups like Space Monkey to raise money and for new sites like AngelList to get off the ground.

Business

National Trend 'Mobs' Local Businesses With Cash WBFO

The new law also opens the door to online crowd-funding sites where startups can strut their stuff and jockey for small investors' attention. Dozens of entrepreneurs, like Sara Hanks, see a big opportunity in that. But as a securities lawyer, Hanks is also skeptical.
"I think we can expect to see the African princes inventing cold fusion any second now," she says. "Wherever there's money, there's going to be fraud. I think we have to stipulate that up front."
Hanks is the former general counsel for the congressional oversight panel charged with keeping an eye on the federal banking bailout, so she knows a thing or two about financial shenanigans.
But that's not stopping her from launching her own online crowd-funding portal. Unlike most of her potential future competitors, her plan is to hire securities lawyers to sift through the startups that want to raise money on her site and weed out the crooks. Still, none of those companies will be a sure thing.

The Burrill Report see page 5 of 35 page April report

Downturn Raises Profile of Government and Foundations as Sources of Early-Stage Funding

Grants and contracts can provide financing for ventures too risky for traditional investors

By Linda Molnar

At a time when early-stage life sciences companies face challenges raising money, they are increasingly finding the federal government and foundations can be good sources of non-dilutive funding. This was not always the case. As recent as five years ago, there was a large disconnect between these sources of funding and traditional venture capital, let alone entrepreneurs themselves.

The deep recession that began in 2008 and the significant fall-off in early-stage venture deals and investments have helped to change this. The venture capital world has still not returned to the levels of funding of early-stage life sciences companies of the past years and may never return to those levels given the changes the venture capital industry is undergoing today.

Deadline approaching for Life Science Entrepreneur/Start Up Application | DIA 2012: Collaborate to Innovate | Deadline: Monday, April 16, 2012

DEADLINE TO APPLY - April 16, 2012

DIA 2012 Collaborate to Innovate

48th Annual Meeting
June 24-28, 2012
Philadelphia, PA
Pennsylvania Convention Center

DIA 2012: Collaborate to Innovate, DIA’s 48th Annual Meeting, is the medical product and health care industries’ largest multidisciplinary event, and brings together a global network of 7,500 professionals to develop safe and effective medical products.

DIA recognizes the innovative seed and early-stage start-up companies that are impacting these industries and we welcome your participation at this year’s event.

Eight entrepreneurs will be given the opportunity to showcase their work at this year’s DIA Annual Meeting.

These entrepreneurs will receive complete and total access within the DIA Annual Meeting Exhibit Hall (which features 500+ exhibiting companies from all around the world) and a small dedicated area (including internet hookup) for a live demonstration or presentation of their innovative product.

For more information, please click on the link below:

http://www.diahome.org/productfiles/27170/12001_EntrepreneurApplication.pdf