Erie, PA-based Full Circle Investments LLC (FCI) is raising a $30 million commercialization fund that will invest in young companies and technologies developed at a handful of research institutions, including Carnegie Mellon University (CMU) and the University of Pittsburgh. A typical investment will range between $1 million and $2 million, and most of the investments will be concentrated in a corridor between Baltimore and Rochester, NY. “We’re bridging the gap between research labs and large corporate entities,” says FCI’s managing partner Kurt Buseck, who previously ran the New York City office of Canadian private equity firm Onex Corp. and was a founding member of Bear Stearns’ Principal Investment Group. “We’re taking technologies and building them into products and small scale businesses that fit the needs of corporations,” he adds.<\/p>\n
FCI Commercialization Fund I LP will focus on nanotechnology\/microtechnology and information assurance, also known as cyber security. Fundraising began in October 2009 and the fund has raised close to $10 million, according to Buseck. Investing will begin once the fund hits the halfway point of $15 million, which Buseck expects to occur around June. FCI, which has strong relationships with some two dozen major corporations, will concentrate on identifying new technologies to fill gaps in the product offerings of these firms, according to Buseck. FCI would serve as a matchmaker between the startups it funds and the large companies. In addition to commercializing university technologies, FCI is looking to invest in what Buseck calls “orphan companies” — young nanotech or cyber security companies that previously received VC support. There are “an overwhelming number of opportunities” in today’s market, Buseck says.<\/p>\n
Marc Malandro, director of Pitt’s Office of Technology Management, says he had discussions with Buseck when the fund was in the concept stage and believes that early stage funding is a crucial need. “If you’re going to commercialize technology and that’s the goal of your fund, you have to make sure you’re in the right place at the right time,” Malandro says. “While all money is a good thing, funding after the product is developed isn’t as helpful to a university in terms of rolling things out.” FCI’s focus is “an eclectic mix [that addresses] an underserved set of technology from our standpoint.”<\/p>\n
“Our region has a long history of expertise in materials and nanotech,” adds Rich Lunak, CEO of Innovation Works, a state-funded economic development entity. He cites Penn State – also among the schools FCI plans to tap – and CMU as having national reputations in these disciplines. “Our region also has a history with information security,” Lunak says. “It’s good when funds build expertise and have sector focuses. They can develop a tight investment thesis and the expertise to develop companies.”<\/p>\n