In a major set-back for Chicago’s biotech industry, two major upstarts left Illinois over the last several weeks. Evanston-based GeneProt decided to pull up stakes and relocate operations to NewJersey late last month.<\/p>\n
GeneProt is a leading proteomics company, and according to Michael Becker, a co-founder of the Chicago Biotech Network, “It’s a huge loss.<\/p>\n
They are at the forefront of the industry.” Proteomics involves the systematic study of proteins, and has broad applications in the development of new drug therapies and diagnostics.<\/p>\n
NephRX, a local biotech company that developed a treatment for kidney disease, was wooed away earlier this month to the Innovation Center in Kalamazoo, Mich. Its founding scientist, F. Gary Toback, is a University of Chicago nephrologist, and the company was one of the first companies spun out by the former ARCH Development Corp. (ADC) at the university.<\/p>\n
“We were investors in the company from Day 1,” noted Tom Churchwell, former head of ADC who left his post this summer to launch a new fund called ARCH Development Partners.<\/p>\n
Churchwell’s fund received $6.5 million from Kalamazoo investors and from Southwest Michigan First. The fund in turn made one of its first investments in NephRX last month.<\/p>\n
“Companies go where the CEO and the money are, not necessarily where the technology was developed,” he explained about the company’s move out of state. The problem is that New Jersey especially, and to a lesser degree, Michigan have well-defined goals, initiatives and crucial funding to create centers of biotech – – and Chicago does not.<\/p>\n
GeneProt CEO Cedric Loiret-Bernal, M.D., stated: “The state of New Jersey has awarded GeneProt numerous incentives, including a generous construction allowance in excess of $6 million.<\/p>\n
This greatly supports our speed-to-market strategy, and allows us to apply resources elsewhere, for example, in recruitment and R&D.”<\/p>\n
The New Jersey Economic Development Authority earlier this year awarded GeneProt a Business Employment Incentive Program grant worth an estimated $3.3 million over 10 years to encourage the company’s move to New Jersey.<\/p>\n
Female VC sets up shop here Lisa Kaufman is part of a growing minority making an impact on the high-tech landscape in Chicago: female venture investor.<\/p>\n
After selling off the assets to an integrated voice and data telecom she co-founded in D.C., Kaufman founded Broadgate Ventures in Chicago last July.<\/p>\n
Kaufman already made her first investment into Chicago-based Network Ninja, a Web-based applications firm founded by Matt Bochneak that has customers and revenues.<\/p>\n
Kaufman declined to note the investment amount because the round of funding is still open–meaning they are looking to attract other investors before the round is closed.<\/p>\n
Bochneak and his executive team met Kaufman during the summer and closed on the investment about a month later.<\/p>\n
“She has been a great help to our company.<\/p>\n
She has a lot of contacts around the city.<\/p>\n
I think Broadgate will be a very successful firm.”<\/p>\n
“I love working with companies in their formative stages,” said Kaufman.<\/p>\n
She said the investment amount will vary between $100,000 and $1 million per deal. “I am looking to fund 10 companies over the next two years” she said, and she also wants most of her investment to go into Chicago early-stage firms.<\/p>\n
Springboard aims to polish local women entrepreneurs<\/p>\n
Springboard, an organization designed to bring women entrepreneurs together with venture capital, held its first venture forum in the Midwest in May.<\/p>\n
Of the 26 presenting companies, nine have already received funding and several more are close to securing investment capital, according to Linda Darragh from the Women’s Business Development Center.<\/p>\n
The problem is that only one of the nine firms funded are from Illinois—the remainder are spread out through the Midwest. “What we realized is that there is a real need to set up an educational base to help local women gain venture capital in future Springboard forums,” said Darragh. In response, Springboard will not be holding a VC conference in 2002 but will instead launch a series of educational workshops beginning with “Access to Equity Bootcamp” on Nov. 1, in partnership with the Women’s Business Development Center.<\/p>\n
Darcy Evon is editor of the i-Street Reporter, an independent free Internet newsletter and i-Street magazine. She can be reached at istreet@i-street.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
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