A University of Arizona seed fund designed to help launch startups from the innovations of faculty, staff, students and alumni has surpassed its initial goal of $2 million after just a year of fundraising.

The Wildcat Philanthropic Seed Fund is ready to begin accepting applications and making its first investments. Tech Launch Arizona – the university office that helps commercialize inventions stemming from university research and innovation and oversees the fund – announced the milestone at a Jan. 30 event at its headquarters. 

The fund is designed to help young companies get through the "valley of death," the period soon after a new venture launches when the risk of failure is high due to lack of financial support. Unlike a traditional investment fund, any proceeds earned when companies go through events such as merger or acquisition will be re-invested back into the fund, creating an evergreen source for U of A startups and a supportive entrepreneurial ecosystem for Tucson and Arizona.

The fund is on its way to its goal of $5 million, and $2 million represents the threshold for being able to begin investing in early-stage U of A-affiliated ventures. This amount was selected to ensure that the fund starts with enough capital to support a first cohort of startups through the initial high-risk phase of development. 

To receive funding, startup teams must complete an online application, which requires teams have a clear affiliation with the U of A by having a student, faculty, staff member or alumnus on the team, or an effort to commercialize U of A intellectual property. If a company is selected to proceed, the fund's investment committee performs its due diligence to evaluate the company's potential for success against its risk of failure, as well as the potential return.  

"We've been working on a strategy for a philanthropic seed fund for a long time," said TLA Associate Vice President Doug Hockstad. "We're excited to finally see it come to fruition and start making impactful investments."

Local entrepreneur, U of A alumnus and Tucson-based investor Fletcher McCusker of UA Venture Capital attended the Jan. 30 event and pledged a donation of $25,000 on the spot – and then challenged others to make similar contributions. 

"Venture capital is what's going to make our startup ecosystem work; these new companies absolutely depend on this kind of early-stage funding," he said. "I'm excited to step up and make a gift and I'm challenging others to do the same and support U of A entrepreneurship."

The Jan. 30 celebration was a great moment, Hockstad said.

"There was great energy in the room and everyone was excited about the vision and work itself," he said. "Fletcher's gift is one more great step to help us get to our next goal of $5 million."

The fund got its start in late 2023 with a $1 million gift from an anonymous donor. It then got another boost early in 2024 with a $500,000 donation paired with a second $500,000 matching gift from the Thomas R. Brown Family Private Foundation. 

Along with supporting fertile ground for startups, the fund also provides experiential learning opportunities for U of A students. Students worked alongside mentors to develop an application and due-diligence process – which the students themselves will run. Students will also support the two primary committees administering the fund: the advisory and investment committees. 

Tech Launch Arizona will highlight the Wildcat Philanthropic Seed Fund for this year's University of Arizona Giving Day on Feb. 14. The annual 24-hour celebration, hosted by the University of Arizona Foundation, aims to boost philanthropy that supports U of A students, programs and research.

Those interested in making contributions to the Wildcat Philanthropic Seed Fund should contact Hockstad at douglash@arizona.edu.