$20 million Arizona venture fund dedicated to biosciences

A consortium of biotechnology and investment professionals have partnered to create Arizona's first venture capital firm dedicated to early-stage bioscience companies.

Translational Accelerator LLC launched Tuesday as a private, $20 million fund and brings together some of the biggest names in Arizona's biotechnology arena. All investments will be made to firms located or planning to move to Arizona.

Richard Love, former Translational Genomics Research Institute senior executive and Dr. David Von Hoff, current TGen director of Translational Drug Development Division, or TRAC, will provide technical experience in fund distribution.

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Medical Consultant Services President and CEO Eric Tooker and Greyhawk Venture Partners' John Bentley will provide financial expertise on investments.

Love spearheaded the firm's creation after working to bring venture capital investment into the state. State economists and politicians have long sought ways to develop further technological investment opportunities in Arizona. A home-grown investment firm built on a successful industry and investment personnel will benefit the medical industry and Arizona's economy, Love said.

"A venture fund's success depends in large part on the expertise of its managers and advisers," he said. "We have a top-notch team of individuals recognized nationally and beyond for their extensive experience in biomedical research and initiating successful commercial ventures."

The fund will invest between $500,000 and $2 million in early-stage companies focusing on developing treatments and prevention agents for cancer and central nervous system diseases. Companies specializing in diagnostics and services in those areas also could benefit from TRAC funding.

Arizona Gov. Janet Napolitano, a strong supporter of local technological investment, said the state has seen improvements following similar public and private investment in this area.

"We are already seeing great results from the additional funding we gave to the research and development institutions at the universities," she said. "We are also seeing more and more biomedical companies relocate or expand to Arizona because of the business climate and the workforce we are turning our of our universities."

The Greater Phoenix Economic Council, the Flinn Foundation and the Battelle Technology Partnership Practice have pledged their support of the fund. The latter two organizations were responsible for Arizona's Bioscience Roadmap, a report detailing the state's necessary direction to turn biotechnology into an economic engine.

"Funds such as TRAC are essential to a successful bioscience region," said Walt Plosila, vice president of the Battelle Technology Partnership Practice and principal author of Arizona's Bioscience Roadmap. "Having early-stage venture capital available in Arizona can speed the commercialization of research discoveries into local firms and jobs rather than being developed elsewhere."