Venture Capital Fund for North Carolina Research Campus Doubles to $200M

The venture capital fund investing in biotechnology companies that locate to the North Carolina Research Campus is doubling its holdings to $200 million. This substantial increase is a result of a donation provided by David Murdock, the billionaire businessman and owner of Castle and Cooke Inc. who also provided the initial $100 million to start the fund. The venture capital fund is an integral component of the $1.5 billion biotechnology hub being constructed in Kannapolis, N.C. 

 

Located between Charlotte and the Research Triangle, Kannapolis is a city of 39,000 residents that was heavily impacted by the bankruptcy of the Pillowtex textile corporation in 2003. The subsequent closing of the local manufacturing facility laid off 4,300 employees in Kannapolis, alone, part of the largest permanent layoff in the history of North Carolina.

 

Construction of a main component of the research campus has already begun on the site of the demolished textile factory complex. The building to house much of the campus core laboratory and equipment space is expected to be completed in 2007, and tenants for the building have already been announced. Attracting a critical mass of companies is a goal to attain long-term viability for the campus.

 

The venture capital fund anticipates spending $12 million to $15 million a year, geared towards early-stage companies close to starting clinical trials. According to Clyde Higgs, who oversees the fund for the campus, about $3 million to $5 million will be available per company for several businesses each year. Any future returns from these investments would be retained by Castle and Cook Inc. In addition to biotech companies, institutional partners such as Duke University, UNC Chapel Hill, and North Carolina State University are collaborating with the biotech campus. The project aims to attract 100 companies of different sizes and stages of development to the 350-acre development.

 

The main website of the North Carolina Research Campus is http://www.ncresearchcampus.net/