Penn has launched a $50 million initiative to fund Philadelphia–based biotech companies. The program will support for–profit enterprises by making equity investments in companies led by University faculty. The aim is “to support and catalyze scientific and medical innovation developed by Penn Medicine faculty in their laboratories and clinics to propel Philadelphia’s growing innovation ecosystem,” Kevin Mahoney, chief administrative officer for the University of Pennsylvania Health System and vice dean at Penn’s Perelman School of Medicine, told the Gazette.

“This effort is designed to support talented Penn faculty members and provide a new pathway for recruitment and retention of researchers whose ideas have the potential to transform healthcare by bringing novel therapies and treatments to patients more quickly,” Mahoney said. It also aims to “create jobs in our region, and pave pathways to the next generation of treatments and cures.”

In an attempt to retain researchers who would otherwise leave the city for an already–established biotech hub, Penn will limit its investments to firms that promise to keep their headquarters in the Greater Philadelphia area. Another requirement is that the company must also secure further funding from a major investment firm. “Penn has committed to providing seed funding for each of the projects selected,” Mahoney explained, “and each subsequent funding round will be led by a high-quality investor or investment syndicate.”

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