Seven Purdue-affiliated startups receive investments totaling $200,000 from Elevate Purdue Foundry Fund
January 18 2019
The fund is a joint venture between the Purdue Foundry, a Purdue-based startup accelerator, and Elevate Ventures, a private venture development organization that supports the development and success of entrepreneurs across Indiana.
The fund’s officials announced that Novosteo, which is developing a targeted drug combination that once injected into a patient could speed up and improve bone fracture healing, was selected for a “Gold Award” investment of $80,000 from the fund.
Six other startups were selected to receive tier-one “Black Award” investments of $20,000 each. They are Spirrow Therapeutics, Predictive Wear, Wave Therapeutics Inc., Karyosoft LLC, Perceive Inc. and Plan Bee. Selection for Black Award status also makes the startups eligible for further investment once they hit certain predetermined milestones.
“We had an outstanding group of applicants from a wide-range of interests, as demonstrated by the startups that were selected,” said John Hanak, Purdue Ventures managing director. “This is the fifth year we have awarded funds to startups through the Elevate Purdue Foundry Fund, and during that time we have witnessed tremendous growth for the entrepreneurs growing these startups.”
The Elevate Purdue Foundry Fund provides money for Purdue-affiliated startups with pre-seed, seed and early-stage investment and co-investment programs. Since the program’s beginning in 2014, the fund has committed to invest $2.66 million in 72 companies.
The funding also gives the startups a “Black Award Status,” making the companies eligible for a “Gold Award” investments in the future. Novosteo had been selected previously for a Black Award investment.
Previous winning entrepreneurs have used the funding for commercialization activities, such as market research, product development and prototype creation.
Black Award recipients fit the following criteria: Purdue Foundry clients; hold intellectual property patented through the Purdue Research Foundation and/or companies owned by Purdue students, faculty or staff. Other considerations include market potential, operational viability and leadership.
The Black Award offers funding through a nonrecourse convertible promissory note finalized directly with Elevate Ventures.
“The Elevate Purdue Foundry Fund continues to be a strong economic contributor for the state of Indiana by connecting entrepreneurs with growth-stimulating capital,” said Chris LaMothe, Elevate Ventures CEO. “We are very pleased with our partnership with Purdue University and its compelling impact on innovation and entrepreneurship.”
The Purdue ecosystem has spawned more than 200 startups, generated more than 300 jobs and brought nearly $350 million in funding and investments in startups during the past five years.
Novosteo was the sole selection in the Gold Award category. It was co-founded by father and son team Philip Low, the Purdue Presidential Scholar for Drug Discovery and the Ralph C. Corley Distinguished Professor of Chemistry, and Stewart Low, a postdoctoral staff member in Purdue’s Department of Chemistry. A video about Novosteo is available here.
Information on the six Black Award recipients: