Life Sciences Innovation Fund Act
The Life Sciences Innovation Fund creates a dedicated state investment vehicle to help translate in-state academic research into commercially viable life sciences, biotech, and health technology ventures. By supporting early-stage development, proof-of-concept work, and partnerships between universities and startups, the fund helps de-risk innovation and attract private capital. The Act aims to anchor high-growth companies locally while strengthening the state’s research-to-market pipeline.
Key Provisions
State Life Sciences Innovation Fund: Creates a publicly managed fund to support commercialization, prototyping, and early-stage growth for life sciences ventures.
University and Research Institution Partnership Grants: Supports the translation of academic biomedical discoveries into marketable products and services through matched funding.
Convertible Grants and Co-Investment Mechanisms: Allows the Fund to issue convertible grants or take equity in startups alongside qualified private investors.
Eligibility Criteria and Prioritization: Targets companies with strong ties to in-state research institutions, clinical trials, or workforce development pipelines.
Performance Metrics and Reporting: Requires ongoing outcome tracking, including job creation, follow-on funding secured, and licensing or regulatory milestones achieved.
Model Language
Section 1. Short Title. This Act shall be known and may be cited as the "Life Sciences Innovation Fund Act."
Section 2. Purpose. The purpose of this Act is to promote commercialization, entrepreneurship, and economic development in the life sciences by investing in early-stage companies and academic innovations.
Section 3. Definitions.
(a) "Life sciences enterprise" means a company engaged in biomedicine, biotechnology, medical devices, diagnostics, health IT, or related fields.
(b) "Eligible institution" means a public or nonprofit university, academic medical center, or affiliated research institute located in the state.
(c) "Department" means the state agency responsible for economic development or technology commercialization.
Section 4. Creation of the Life Sciences Innovation Fund.
(a) The Department shall establish and manage the Life Sciences Innovation Fund.
(b) The Fund may:
(1) Award non-dilutive grants of up to $500,000;
(2) Make equity or convertible note investments in qualifying companies;
(3) Provide technical assistance to grantees.
(c) At least 30% of annual funding shall be reserved for projects originating from eligible institutions.
Section 5. University and Research Partnership Grants.
(a) The Fund shall provide matching grants to:
(1) Translate federally funded research into commercial prototypes;
(2) Support early-stage clinical trials;
(3) Protect intellectual property and prepare for licensing.
(b) Each applicant must show institutional support and a plan for commercialization.
Section 6. Eligibility and Prioritization.
(a) Eligible applicants must be located or have substantial operations in-state.
(b) Priority shall be given to applicants that:
(1) Are affiliated with public research institutions;
(2) Demonstrate job creation potential;
(3) Have secured matching funds or qualified private investment.
Section 7. Funding Structure and Oversight.
(a) The Department shall create an advisory board with representation from academia, venture capital, life sciences industry, and economic development.
(b) The board shall assist in:
(1) Review and selection of projects;
(2) Setting investment policies and risk thresholds;
(3) Monitoring portfolio performance.
Section 8. Performance Metrics and Reporting.
(a) The Department shall track and report:
(1) Number of jobs created or retained;
(2) Amount of follow-on funding or private investment;
(3) Licensing deals, patents, and regulatory milestones.
(b) An annual public report shall be submitted to the Legislature.
Section 9. Appropriations. An initial appropriation of $25 million is authorized for the fiscal year beginning July 1 following enactment.
Section 10. Severability. If any provision of this Act is held invalid, the remainder shall remain in full force and effect.
Section 11. Effective Date. This Act shall take effect on January 1 of the year following its enactment.