Georgia's public-private effort to create new technology-based companies out of local university research has gotten a financial endorsement from the investment community.
The Georgia Research Alliance announced Monday that its GRA Venture Fund has raised $11.25 million from venture capital investors to help startup businesses incubated in the GRA's VentureLab commercialization program.
The funds will be matched by $7.5 million provided by the State of Georgia, for a total of $18.75 million.
The target for the fund, which was started last year, is $30 million including the state match.
The fund remains open to further investors, but the money raised so far can now be released to companies emerging from VentureLab.
"The early-stage financing the fund will provide is some of the hardest to find and is absolutely essential for these companies to grow and thrive," said C. Michael Cassidy, president and CEO of the GRA, in a statement.
That the investment was obtained in an especially harsh economic environment was noted by Georgia Gov. Sonny Perdue, who announced the start of the fund last year.
GRA officials cited the state's additional commitments, including tax credits for fund investors and for those who co-invest in the companies.
VentureLab has helped 80 companies since its launch in 2002 but, to date, financing for most of those has come from so-called angel investors. Angels typically are individuals who get involved in very early stages of a business, don't seek an active management role and have experience in the industry.
VentureLab works with Georgia's six research universities: Clark Atlanta; Emory; Georgia Tech; Georgia State; the Medical College of Georgia; and the University of Georgia.
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