A South Side-based investor and incubator for life sciences and related startups is set to receive a $1 million grant as part of a recently launched state program that's looking to back such ventures with funding from Harrisburg.
LifeX Holdings LLC is one of six benefactors that will receive funding from Pennsylvania's Angel Investment Venture Capital Program, which is tasked with making investments into Pennsylvania-based organizations that will then go on to fund startups focused on the commercialization of research and development, tech transfers or new technology applications. Pennsylvania Senate Majority Appropriations Committee Chairman Pat Browne worked with the office of Gov. Tom Wolf and the Office of the Budget to develop the investment program, with the latter of these serving as the program's administrator.
"I am pleased to work with Gov. Tom Wolf to establish this program and provide this funding to these angel investors who have made a commitment to provide funding or resources to help startup businesses get established in the commonwealth, create jobs and contribute to the state’s economy,” Browne said in a prepared statement. "This program recognizes the challenges that new businesses and industries often face with significant startup costs, lack of resources, expertise and physical space to flourish. Given those challenges, this program will help stimulate growth in Pennsylvania through this type of venture between investors, startups and the commonwealth."
By providing startups with resources and guidance, LifeX Holdings aims to derisk the often costly commercialization and growth phases of the companies that are operating in the life sciences industry. LifeX Ventures LLC, an affiliate, funds these startups directly.
"LifeX’s expertise as an extension of a portfolio company's team will now be further enhanced by allowing LifeX to assist with providing the necessary early-stage risk capital these young companies require to achieve commercial success — one of the main missing pieces in our ecosystem’s growth," Jerry Vardzel, president and CEO of LifeX, said in a prepared statement.
LifeX, which was established by the University of Pittsburgh, currently counts 12 companies in its portfolio and is working to launch a $30 million fund to use for investments into startup companies.
"This funding, which instantly strengthens LifeX’s capacity to seed new companies and innovations, advances the state’s efforts to become a leading life sciences hub," University of Pittsburgh Chancellor Patrick Gallagher said in a statement.
The new traunch of funding follows the $14.7 million it received in September from the state's Direct Venture Investment program. In July, LifeX took on the state's life sciences greenhouse designation that had previously been granted to the Pittsburgh Life Sciences Greenhouse, an organization that also aids in the fostering and launching of local startups. This designation — one of three in the state — brings with it an infusion of capital from Harrisburg to LifeX so that it can better operate as an accelerator and investment venture for startups working in the life sciences space.
