U.S. Department of Energy Selects Venture Capital Firms to Accelerate Adoption of Advanced Energy Technologies
http://www.energy.gov/news/6017.htm
SAN FRANCISCO, CA (February 27, 2008) -- U.S. Department of Energy (DOE) Assistant Secretary for Energy Efficiency and Renewable Energy
Alexander Karsner today announced the competitive selection of three venture capital firms to participate in DOE’s newly established Entrepreneur
in Residence (EIR) pilot program, which aims to accelerate deployment and commercialization of advanced clean energy technologies from three DOE
National Laboratories into the global marketplace. The EIR pilot program furthers President Bush’s comprehensive strategy to reduce our nation’s
dependence on foreign oil and reduce greenhouse gas emissions by empowering researchers and entrepreneurs to pioneer a new generation of clean
energy technology.
“The Entrepreneur in Residence pilot program provides venture capital-sponsored entrepreneurs with access into three Energy Department’s
world-class national labs to accelerate adoption of advanced renewable energy and energy efficient technologies to fundamentally transform
how we power this nation,” Assistant Secretary Karsner said. “In an effort to further the President’s comprehensive strategy to diversify
our nation’s energy sources, and reduce emissions, the Department is leveraging private-sector expertise in new ways to capitalize on cutting-edge
technologies that are ripe for commercialization.”
The EIR pilot program involves placing venture capital-sponsored and selected entrepreneurs in three of DOE’s world-class National Laboratories to
identify laboratory-developed technologies funded by DOE’s Office of Energy Efficiency and Renewable Energy, and to develop business cases for their
commercialization. Following evaluation of responses to DOE’s October 2007 competitive Funding Opportunity Announcement (FOA), DOE has selected Kleiner,
Perkins, Caufield & Byers (Menlo Park, CA) to work with DOE’s National Renewable Energy Laboratory; ARCH Venture Partners (Chicago, IL) to work with DOE’s
Sandia National Laboratory; and Foundation Capital (Menlo Park, CA) to work with DOE’s Oak Ridge National Laboratory. Selections are subject to
negotiation of final terms and execution of a Cooperative Agreement with each selected recipient.
The FOA proposed that each laboratory would host one entrepreneur in residence at a given time, and DOE would support this work by providing up to
$100,000 for each entrepreneur to help defray salary and other expenses. Each firm will match DOE funding and may contribute additional funds to support
its entrepreneur’s work.
Using their vast business expertise, the selected firms will be permitted to give proven start-up entrepreneurs the opportunity to work directly with
laboratory staff for a hands-on look at various, commercially viable technologies. Entrepreneurs will conduct technology assessments, evaluate market
opportunities, formulate preliminary business cases, and propose business structures in an effort to bring cutting-edge technologies to market.
Upon selecting a technology for commercialization, entrepreneurs in residence and their venture capital sponsors would negotiate a license to use the
laboratory-developed technology. Working with their respective entrepreneur, the venture capital sponsors will form and finance a start-up business based
on the licensed technology. The foundation of each start-up’s business plan would be the commercialization of licensed clean energy technologies.
To further accelerate the commercialization process, the EIR pilot program seeks to utilize a Standard License Agreement, tailored for entrepreneurs
and small businesses. The Standard License Agreement includes a provision that would permit the EIR to offer partial ownership of the start-up company
as full or partial payment for the license. This provides the opportunity for a start-up company to use its initial resources to grow the company
rather than to make substantial up-front cash royalty payments. Built off of the structure of successful university licenses, the Standard License
Agreement was attached to the FOA.
Read more information about the DOE Entrepreneurs in Residence Program.
Media contact(s):
Julie Ruggiero, (202) 586-4940
ARCH Venture Partners Closes $400 Million Seventh Fund
CHICAGO (December 10, 2007) -- ARCH Venture Partners announced the closing of its seventh venture fund with $400 million in
capital commitments. ARCH Venture Fund VII, L.P. (Fund VII) makes ARCH one of the largest providers of seed capital in the U.S. with
approximately $1.5 billion under management. Fund VII attracted investors representing some of the largest U.S., European and Asian
interests, including university endowments, corporations, major pension funds, public institutions, and private family foundations.
Fund VII will continue ARCH's focus on seed and early-stage companies commercializing revolutionary technology emanating from
universities, national laboratories, corporate research laboratories, and successful entrepreneurs. ARCH is one of few venture firms of
its size that concentrates on the creation of new companies based upon scientific research and the resulting technologies. ARCH has
earned a reputation as one of the leading venture capital firms investing in breakthroughs in life sciences, physical sciences, and
information technology, and in the increasing convergence of such technologies. The firm is well known for identifying and capitalizing
on fundamental trends in early stage biotechnology, advanced materials, and specialty semiconductors.
Keith Crandell, Managing Director, said, "Fund VII will target distinctive innovations in advanced materials, including novel developments
in semiconductors, photonics, and nanotechnology. The pace of innovation at research institutions continues unabated, and great fundamental
advances are being made, particularly in the convergence of multiple disciplines such as biology, nanotech and optoelectronics. We will
continue to see new industries develop as research unlocks hidden science."
Fund VII will also continue ARCH's leadership in biotechnology investing. "We have a firm belief that investing in fundamental biotechnology
innovations is one of the few areas that wins in cyclical economies." said Robert Nelsen, Managing Director. "We have seen our biotech platform
companies do quite well throughout repetitive cycles, contrary to the industry trend toward 'product-only' companies. Our focus is on the most
innovative opportunities, from pioneering technology to landmark products to expanding into unconventional markets."
NOTES FOR EDITORS
ARCH Venture Partners, founded in 1986, is a spin-off from an innovative technology commercialization initiative originated by The University of
Chicago. Now in its 22nd year, ARCH has approximately $1.5 billion under management across multiple venture funds.
ARCH has invested in more than 120 companies, most of them from the concept stage. A sampling of portfolio successes include early investments
in Illumina, Inc. (ILMN), New Era of Networks, Inc., Aviron, Inc., Xtera Communications, Inc., Ahura Scientific, Inc., Nanophase Technologies Corp.
(NANX), Caliper Life Sciences, Inc. (CALP), deCODE Genetics, Inc. (DCGN), XenoPort, Inc. (XNPT), and Alnylam Pharmaceuticals, Inc. (ALNY). Further
notable companies in the portfolio include Ikaria Holdings, Inc., Fate Therapeutics, Inc., Impinj, Inc., Trubion Pharmaceuticals, Inc. (TRBN),
ALIS Corp., MicroOptical Devices, Inc., Array BioPharma, Inc. (ARRY), Elixir Pharmaceuticals, Inc., NeurogesX, Inc. (NGSX), Surface Logix, Inc.,
and Classmates Online, Inc.
ARCH's successful model of technology commercialization has garnered coverage from top business journals, periodicals, and in two case studies
written by distinguished academics at The Harvard Business School.
As a team, the ARCH partners are unique, sharing more than 20 years of collaborative and interdisciplinary work in early stage new enterprise
formation. The Co-Founding Managing Directors are Keith Crandell, Robert Nelsen, Clinton Bybee and Steve Lazarus (Emeritus). Managing Directors
are Patrick Ennis, Scott Minick and Steve Gillis.
To learn more about ARCH, its venture funds, management team, and portfolio companies, see the website at www.archventure.com or contact:
Clinton Bybee, Managing Director, (512) 795-5830
Keith Crandell, Managing Director, (773) 380-6600
Patrick Ennis, Managing Director, (206) 674-3028
Steve Gillis, Managing Director, (206) 674-3028
Steven Lazarus, Managing Director Emeritus, (773) 380-6600
Robert Nelsen, Managing Director, (206) 674-3028
Scott Minick, Managing Director, (415) 565-7103
