Tucson Standard

A seed fund at the University of Arizona has reached a significant milestone, surpassing its initial $2 million fundraising goal within a year. The Wildcat Philanthropic Seed Fund is now set to begin accepting applications and making investments in early-stage startups linked to the university.

Tech Launch Arizona, responsible for commercializing university research and innovation, oversees the fund. They announced this achievement during an event on January 30. The fund aims to support young companies through the "valley of death," a critical phase where financial backing is often scarce. Unlike traditional investment funds, any proceeds from mergers or acquisitions will be reinvested into the fund, creating an ongoing resource for U of A startups.

The fund's ultimate target is $5 million, with $2 million being the minimum required to start investing in affiliated ventures. This amount ensures adequate capital for supporting a first cohort of startups through their high-risk development stages.

To qualify for funding, startup teams must submit an online application demonstrating a clear affiliation with the University of Arizona. If selected, the investment committee evaluates each company's potential success against its risks and possible returns.

"We've been working on a strategy for a philanthropic seed fund for a long time," said Doug Hockstad, TLA Associate Vice President. "We're excited to finally see it come to fruition and start making impactful investments."

Fletcher McCusker, a local entrepreneur and U of A alumnus from UA Venture Capital, attended the event and pledged $25,000 while encouraging others to contribute similarly. "Venture capital is what's going to make our startup ecosystem work; these new companies absolutely depend on this kind of early-stage funding," he stated.

The celebration marked an important moment for Hockstad: "There was great energy in the room and everyone was excited about the vision and work itself," he said. McCusker's donation is seen as another step towards reaching the next goal of $5 million.

The fund began in late 2023 with a $1 million gift from an anonymous donor and received further contributions in early 2024 from Thomas R. Brown Family Private Foundation totaling another $1 million.

In addition to fostering startups, the fund offers experiential learning opportunities for students who assist with developing application processes and due diligence efforts alongside mentors.

Tech Launch Arizona plans to spotlight the Wildcat Philanthropic Seed Fund during this year's University of Arizona Giving Day on February 14—a day dedicated to promoting philanthropy supporting university programs.

For those interested in contributing to the Wildcat Philanthropic Seed Fund, contact Doug Hockstad at douglash@arizona.edu.