Innova Funds University of Memphis MBA Student Companies

Innova
Jul 27, 2009

MEMPHIS, Tennessee, July 21, 2009 Innova Memphis Inc, an early stage investment fund, announced today it has committed to invest in four companies to be launched by graduates of the new Entrepreneur MBA program at the University of Memphis. This new investment program is in conjunction with the University of Memphis Fogelman College of Business.

Innova, formed by Memphis Bioworks Foundation, invests in Memphis-based entrepreneurial companies that are developing innovative products and services. The goal is to promote the flow of capital locally while advancing market sectors and building commercially successful enterprises. Innova also aims to spur economic development in the city of Memphis.

"Our funding of the four companies to be launched by these Entrepreneurial MBA, ties directly with our mission to promote economic growth in Memphis, TN. Our close relationship with the University of Memphis and our support of entrepreneurial growth make investing in these students' companies a direct fit with our charter. We believe the combination of the University training and these students' passion and creativity make their companies a solid Innova investment," said Ken Woody, Innovas president.

A Board will review each request for funding and the students will need to apply for each disbursement. The Board is composed of Dr. Rajiv Grover, Dean of the Fogelman Business College, Dr. Kevin Boggs, Director of the University of Memphis Technology Transfer, Jan Bouten, Executive Director of TECworks, and Ken Woody, President of Innova.

The creation of the Entrepreneurial MBA Program, a scholarship program in which four students are taken through two years of intensive "how to start and run a successful business" training, is unprecedented in the US as each student will be creating their own company while earning an MBA.

Innova is a strategic part of the MemphisED program to develop an entrepreneurial spirit and an environment for innovative ideas to be nourished into opportunities for business development.

Dean Rajiv Grover comments, "This is an exciting development as I have been saying that the Entrepreneurship MBA program is for launching businesses and not for just offering courses. Innova's financial contributions to these student companies gives them leverage they would not otherwise have. It provides the mechanism by which the companies can successfully launch, seek further funding, and ultimately, reach commercialization. I take pride in the fact that Innova could contribute through this program to the outstanding Memphis Fast Forward and Memphis ED initiatives."

By the end of Year One of the program, each student will launch their company and then will work in Year Two to commercialize the product or service through continued guidance and training.

"The goal is that at the end of two years, each company is able to stand-alone and has a clear plan for commercial success," said Steven J. Bares, executive director of the Memphis Bioworks Foundation. "By funding these companies' early growth, we can provide these graduates a greater opportunity for success, help create a more suitable environment for job creation, and attract additional talent into the mosaic of our community."

About Innova

Innova invests in early stage, dynamic companies that have the potential to grow into significant economic contributors. The organization focuses on technology and defensible service companies based in Memphis including Medical device, Biotechnology, AgBio, Logistics and other bioscience sectors. Innova was created by the Memphis Bioworks Foundation to help establish Memphis as a national center of excellence in entrepreneurship. Innovas goal is to nurture the growth of high technology and entrepreneurial efforts in the Mid-South that will result in significant job creation, economic growth and competitiveness. To learn more about Innova, visit www.innovamemphis.com.

About the Investment Program

Innova Memphis, Inc. has committed a total of $50,000 to invest in the four companies created by the University of Memphis Entrepreneur MBA Program. Upon creation, each company can receive up to $12,500, upon approval by the Investment Board. The investment will convert into equity with the first round raise of formal financing by each company. Innova hopes to continue this program in future years.