Consortium of University Tech Transfer Spin-Outs today announces participation in a beta launch to test the application of a new funding statute passed through the JOBS act in 2013. Known as Reg D 506c exemption, this modification to private placement law enables early stage companies (private issuers) to publicly raise funds through general solicitation of accredited investors.The goal of the beta test is to better assess the ability to efficiently and cost effectively reach a broader base of Life Science accredited investors using established funding platforms under the general solicitation regulation.The participating therapeutics and medical device spin-outs were incubated at the University of Pennsylvania, University of Florida and University of Colorado. While each university maintains a minority equity stake in the venture, each of the spin-outs are now stand-alone-companies funding and operating independently of the universities on their path to commercialization.“We hope to expand networks of accredited investors, including angel investors, who are dedicated to advancing these funding endeavors at the early stages,” said Kate Tallman, associate vice president for the Office of Technology Transfer at University of Colorado.This campaign is designed to efficiently attract accredited investors willing to invest a minimum of $10K-$25K in equity capital into multiple startup companies, thereby enabling investors to spread their investment risk by allocating smaller dollar amounts among more opportunities. “It’s a Win-Win for both investors and the issuers,” commented Connie Kenneally, a long time entrepreneur who spearheaded this effort.The participating companies expect early exit opportunities (licensing, strategic partnerships, etc.) in 2 years+, which span areas such as diabetes, metastatic breast cancer, cancer radiation toxicity, orphan kidney diseases and glaucoma.The companies that have progressed beyond the “proof-of-concept” phase previously raised either dilutive or non-dilutive funds and will broadcast their opportunity with two established accredited investor networking platforms: Healthios Xchange and Angel List.
via Consortium of Spin-Out Companies from University Tech Transfer Collaborate on Beta to Raise Early Stage Investment through Equity-Based Funding Platforms for Life Sciences Startups | University of Colorado.