Why was it created?
For entrepreneurs, especially those in Arizona, access to capital is usually a very painful and lengthy process. BioAccel, was specifically designed to provide funding to support proof of concept, and pre-seed funding in the biomedical area. However, it was evident that additional funding is necessary for the successful enterprises to grow.
We realized that we require a focused fund to bridge to Angel investments and/or to lead angel rounds.
We knew that access to early stage investment is very difficult to obtain due to the inherent high risk in such investments as well as a lack of subject matter expertise. So we went ahead and created a new kind of fund called the Bio Accelerator Fund.
The following are key highlights of the fund.
- The fund is a wholly owned subsidiary of BioAccel. BioAccel benefits through a management fee and percent of the carry, as with a traditional fund.
- The Fund will support only companies that are part of BioAccel portfolio of companies vetted through our diligence process and Advisory Council. Additionally an Investment Committee, made up of a subset of our Advisory Council will select investments. We believe this reduces the investment risk because of the deeper level of knowledge possessed by the investment committee.