$10M fund to bring research to the marketplace

IU President Michael McRobbie announced Friday a new $10 million venture capital fund, called the Innovate Indiana Fund, which aims to help in the development of innovations and technologies generated at IU.

“The fund is being established to translate technology, and really knowledge, into actual products and services,” said Steve Chaplin, assistant managing editor for the Office of University Communications. “Things like medical devices and testing tools for education.”

The fund will empower researchers to move their work out of the lab and to the marketplace, Chaplin said.

It will allow faculty members who have been talking about a product venture for years see it become a realization, Chaplin said.

Anthony Armstrong, president and CEO of the IU Research and Technology Corporation, said he thinks the fund will allow the University to assist in producing or researching some of the technologies that have a difficult time finding funding. It will also help faculty members make their businesses more valuable, he said.

“More likely these technologies will benefit people around the state and around the world,” he said.

A board has been created to review applicants requesting money to support their ventures, Chaplin said. The six members of the board will review applications, rank and review them, then meet with the applicants to discuss what the money will be used for, he said.

“The board decides which are best for the University and best for personal opportunity,” Chaplin said.

The board will begin releasing the funds early next year, Chaplin said.

Armstrong, who is serving as a member on the board, said they are already evaluating some of the opportunities that have been presented by faculty members.

He said he expects to see a wide range of applicants with ventures ranging from life sciences to information technology.

The board has already seen one applicant interested in developing a new type of medical device that evaluates kidney function, he said.

Chaplin said the board is looking to invest the $10 million during the next five years and receive some returns out of it.

Armstrong said he does not think there is any set amount per year or per quarter that the board will grant to applicants.

“It depends on the quality of the deals and how much they’re asking for,” he said.

The money gathered to initiate the fund came from a combination of donors and other funding generated through commercial efforts in the past, Armstrong said.

“It tells faculty and researchers ‘we’re here to support you,’” Chaplin said.