ARCH Development Fund I Addressing the Void in Seed Venture Capital in the Midwest Thomas L. Churchwell Teri F. Willey Christopher E.V. Quinn Locations in Chicago, Illinois West Lafayette, Indiana Kalamazoo, Michigan Peoria, Illinois www.archdevelopmentpartners.com 350 W. Hubbard, Suite 400 Chicago, IL 60610 312-828-9970
ARCH Development Corporation 86-June 01 ARCH Venture Partners 94-present ARCH Development Partners - Fund I June 01-present
ARCH Development Corporation (ADC) is a not-for-profit wholly owned affiliate of the University of Chicago committed to realizing commercial value for innovative early stage scientific discoveries.
ADC was formed in 1986 to license UC and ANL inventions to existing companies as well as start new companies.
ADC was formed to assist the University in “bridging the funding gap” as well as implementing the Bayh-Dole Act.
ARCH Venture Partners (AVP) is a mid-90’s venture fund spin-out of ARCH Development Corporation .
ARCH Development Fund I (ADFI) is year 2001 venture fund spin-out of ARCH Development Corporation . The ADFI will be managed by ARCH Development Partners.
Type: Science/innovation based company . Prefer university or corporate owned intellectual property as the basis for the spin out (vs independent inventor). Life Science
Stage: Pre-business plan and management team is fine . We prefer to act as founders at this stage, assist with company formation and management and board recruitment and the acquiring the necessary intellectual property rights.
Funding: 50k to 1 million for the purpose of squeezing risk out of the venture and positioning it for further investment or revenue generation.
Market: The product(s) the company is proposing to develop should have a market of 200 million or more (that is the company’s sales are expected to be 200 million or more annually in a reasonable time after product launch.)
Clear commercialization strategy and competitive advantage : There should be a realistic idea of who and what the competition is and how the idea will reach the market in the form of a product.
Intellectual property protection : The proposed product should be based on a proprietary position, preferably a strong patent position or the potential for one.
Management team : If the innovator/scientist does not have relevant business experience, then a willingness on his/her part to participate as a scientific/technical advisor and work closely with qualified management is required. We love to work with experienced start-up company managers but are very willing to recruit management and work very closely with the company to move it forward.
Exit. The company or proposed company should be one poised for an acquisition exit or in some cases an IPO exit.
Referral : The plan or idea has been referred by well respected potential investor or similar.
7 rounds of financing. Led 4 of the rounds. 2 bridges to series A (rounds in process) and 2 more rounds in the works
We said we would concentrate on university science-based deals and that we would use our network to find qualified co-investors early.
Of the 10 companies in our current portfolio, 8 are university spin-outs and all deals in the pipeline are start-ups based on university science.
Co-investors invested in all financing rounds since the first close. We have successfully leveraged our investments by more than 4 to 1 through successful syndication with other qualified investors.
We said we would balance the portfolio between IT and Life science and we would concentrate our efforts in communities in the upper Midwest.
Of the 10 companies in our current portfolio, 6 are IT or software related and 4 are life science or healthcare related.
Five currently reside in Illinois, 3 in Michigan, 1 in Indiana and 1 in Washington (as a result of a merger). Three of the 4 deals in our pipeline are life science related. One is in Cincinnati; 2 in Michigan and 1 is co-located with us in Chicago for now.
Portfolio Companies Electronic systems level design tool to help chip designers to dramatically reduce design times of complex electronic chips www.accelchip.com Productized/Packaged systems integration solutions www.adeptia.com Three-dimensional optical tweezers www.arryx.com Mobile resource management software solution to optimize and manage dynamic information. www.mobitrac.com Growth factor based therapies www.nephrxcorp.com Sophisticated briefing service www.nexcerpt.com Enabling tools for genome research and personalized medicine www.rubicongenomics.com Sensor validation and fault detection www.smartsignal.com Web-based collaborative corporate training for profit enhancement www.wisdomtools.com Novel therapies for auto-immune diseases www.xcyte.com