U of A announces $1 million gift to startup seed fund

The University of Arizona has received an anonymous $1 million donation to its Wildcat Philanthropic Seed Fund, it announced Thursday.

The seed fund is an early-stage fund meant to help support UA startups launched “to commercialize ideas and innovations stemming from the work of university faculty, staff and students,” the university’s announcement said.

The gift is meant to kickstart establishment of an evergreen funding source to help young companies get through the so- called “valley of death,” or the period at the beginning of a venture when there’s a high risk of failure due to lack of early-stage financial support.

The fund will also provide “hands-on investing experience for students,” UA said.

It will be spearheaded and administered by Tech Launch Arizona, an office at the university that works with faculty, staff and students to “commercialize inventions stemming from their research and innovation.”

“I’m excited by this program’s engagement of students in the investment world, as well as the potential the fund has for infusing this ecosystem with new and exciting innovations,” the anonymous donor said in the announcement. “I hope this contribution helps seed the ground for further growth of these kinds of resources to help our newest and most innovative Wildcat investors and entrepreneurs to go out there and make their mark on the world.”

The goal is for the fund to reach $2 million before making any investments, and for the fund to grow to $5 million, said Associate Vice President for Tech Launch Arizona Doug Hockstad. The target is to make investments ranging from about $25,000 to $250,000, Hockstad said.

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“Along with investments, a key feature of the Wildcat Philanthropic Seed Fund will be to involve students helping with due diligence and investment decisions,” he said in the announcement. “They’ll have a seat at the table, and through the experience we hope to plant the seeds that will inspire them toward impactful entrepreneurship in the future.”

Donors will be able to make gifts to the fund through the University of Arizona Foundation, which will hold any equity resulting from fund investments.

Additionally, “proceeds resulting from successes, such as when startups are acquired or go through an initial public offering, will go back into the fund for future investments.”

UA President Robert C. Robbins expressed his enthusiasm for the project in the announcement.

“The University of Arizona is committed to leading the innovation ecosystem in Southern Arizona by fueling discoveries and inventions, commercializing intellectual property and fostering entrepreneurship,” he said. “Access to capital is often one of the biggest hurdles to commercializing the inventions of our researchers and students, and the Wildcat Philanthropic Seed Fund provides a new resource to bridge that gap between launch and revenue generation.”