The City of Akron has launched a $1.5 million investment fund that’s intended to attract biomedical companies to the city.
The new Akron BioInvestments Funds will target domestic and international companies that focus on orthopedics, wound healing, cardiovascular science, biomaterials, health information technology and medical devices, according to a statement from the city.
Akron Mayor Don Plusquellic announced new details about the fund Tuesday at the annual meeting of Clevleand-based, state-backed venture development group JumpStart. However, Plusquellic first discussed the fund in March during his state of the city address.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Most of the initial investments in the fund were made by Medical Mutual of Ohio, First Energy, Northeast Ohio Medical University and Akron-based Cascade Capital, which will also manage the fund. Medical Mutual contributed $1 million of the initial amount, Plusquellic said.
All companies that receive investments from the fund must commit to maintaining a presence in Akron.
The Akron BioInvestment Funds will consist of two parts: a rapid commercialization loan fund that’s intended for companies close to commercialization and a product development fund to support startups with proofs of concept, prototypes and market assessments.
Akron is looking to build on some recent success, having recently announced that an Israeli back-pain device company, Nervomatrix, is planning to set up its North American sales and marketing headquarters in the city. Nervomatrix received a $3.5 million series A investment from Akron-based venture firm Everett Partners.
The fund will begin accepting applications on Dec. 1.
