Memphis Bioworks Foundation Announces Launch of Business Accelerator to Drive Bioscience Development

MEMPHIS, Tennessee, October 4, 2007 - The Memphis Bioworks Foundation announced today that it will launch INNOVA, an accelerator/seed fund to drive the development of new technology-based companies in the Memphis region by bringing together the necessary technologies, diverse entrepreneurs and funding.

Initial funding for INNOVA is being provided by MemphisED, which is allocating the foundation $11.5 million over five years to establish an accelerator seed fund for new companies. The majority of the funding will be used to invest in small, technology-based and defensible service-based companies.

Through this initial funding, Memphis Bioworks Foundation has committed to creating a top-tier process for screening, mentoring, organizing and strategic business planning for new ventures. The seed fund provides those businesses with start up capital so they can work with incubators in Memphis such as Emerge Memphis, FedEx Institute of Technology and Memphis Bioworks Foundation. The Foundation anticipates other philanthropic entities and private donors will augment the initial seed fund.

"Having a business accelerator allows us to take the next step in developing Memphis' bioscience economy," said Dr. Steven J. Bares, president and executive director of the Memphis Bioworks Foundation. "Technology commercialization and incubation is one of the most difficult and complicated business endeavors. A service like this is vitally important in Memphis to achieve bioscience business growth. We are looking forward to working with local incubators to grow and develop new technology-based businesses in our community."

To ensure its viability, each new venture will be required to undergo a thorough new business start-up process and analysis by an independent investment board. This will allow new companies to quickly establish a strong foundation for future growth.

INNOVA also will license intellectual property from local and national universities and companies in order to pair entrepreneurs with promising technologies. Efforts will focus on key industries in which Memphis already has clear advantages – biomedical, biologistics, and bioagriculture.

"The leaders of MemphisED recognize that new businesses are good for the economy – the results include new jobs, higher wages, and ultimately a more stable tax base," said Bares. "An accelerator means even greater opportunities for Memphis to draw new investments and professional talent."

John Moore, president of the Memphis Regional Chamber of Commerce and one of the funding organizations, concurred, adding that ultimately, INNOVA will be recognized as a national "center of excellence."

"We will know that INNOVA is a success when Memphis is recognized by angel investors and venture capitalists as the place to find exciting new investment opportunities, and entrepreneurs look to Memphis to form their next technology-based companies."

One of the first action items is to identify the team and leadership to support Innova. Memphis Bioworks Foundation also is meeting with local companies and entrepreneurs to identify potential new technology businesses to support in the Memphis area.

The Memphis Bioworks Foundation, a not-for-profit organization, was formed in 2001 to establish the Memphis region as an internationally recognized center for biomedical technology through education, research, job training, and commercialization. Baptist Memorial Health Care donated its property in the Memphis Medical Center to the Foundation for the site of the UT-Baptist Research Park, which serves as the focal point of the city's biomedical economic development. For more information, visit www.memphisbioworks.org.