Helping VCU innovators build stronger startups

By Jeff Kelley

Researchers know science, and their breakthroughs often begin in a laboratory. Entrepreneurs know business, and their experience can bring those innovations to market.

At Virginia Commonwealth University, a partnership is growing that recognizes the reality, and the potential, of that distinction: Most faculty inventors never set out to become startup CEOs - they prefer to remain focused on research - while others who build companies are best-suited to guide the discoveries toward commercialization.

VCU TechTransfer and Ventures, whose mission is to help campus inventions serve a public good, is now working particularly closely with Activation Capital, a state authority that promotes biohealth and life sciences entrepreneurship in Central Virginia. The partnership is pairing promising VCU startups with experienced business leaders while providing resources those companies need to grow, said P. Srirama Rao, Ph.D., vice president for research and innovation at VCU.

Ivelina Metcheva, Ph.D., associate vice president for innovation and head of VCU TechTransfer and Ventures. (File image)

"It takes an ecosystem to build successful startups," said Ivelina Metcheva, Ph.D., associate vice president for innovation and head of VCU TechTransfer and Ventures. "Our researchers create remarkable discoveries, but commercializing those innovations requires many different kinds of expertise. That's why partnerships like this are so important."

Emphasizing local development

Located in the VA Bio+Tech Park in downtown Richmond alongside VCU TechTransfer and Ventures and the VCU Office of the Vice President for Research and Innovation, Activation Capital provides emerging life sciences companies with mentoring, business development support, startup space including wet labs, and connections to partners and investors.

The majority of those companies originate from VCU, where TechTransfer and Ventures has helped launch more than 90 startups since 2016. Through both startup companies and licensing agreements with established businesses, VCU technologies have led to more than 60 products currently on the market.

"There are outstanding researchers and incredible intellectual property at VCU," said Michael Steele, president and CEO of Activation Capital. "But what we found is that most faculty inventors don't necessarily want to become CEOs, or they feel more seasoned executives are better suited in that role. They want to continue advancing the research they love."

Activation Capital developed a program, Pioneer Connect, with the goal of keeping development local while bringing in experienced entrepreneurs to build the companies for commercialization.

Example: Health at home

Xuewei Wang, an associate professor of chemistry, created a portable, at-home calcium monitoring device for people living with hypoparathyroidism, or hypopara. (Christopher Kendall, Kelley & Co.)

One example is Tralyte Health, through which Activation Capital helped connect serial entrepreneur Jay Atkinson with founder and VCU associate professor of chemistry Xuewei Wang, Ph.D. Wang developed a portable, at-home calcium monitoring device for people living with hypoparathyroidism - a test that otherwise requires going to a lab.

"Activation Capital and VCU TechTransfer and Ventures created the conditions for Tralyte to move quickly," Atkinson said. "The partnership brought together the inventor and an experienced operator at exactly the right moment, which let us focus immediately on commercialization strategy, regulatory planning and building a viable path to market. That alignment shortened our timeline and strengthened the intellectual property position from day one."

Example: Rare earth elements

Leah Spangler, Ph.D., assistant professor of chemical and biomolecular engineering, is developing a cleaner, more efficient way to separate rare earth elements. (Christopher Kendall, Kelley & Co.)

A similar partnership helped launch BioRE-Element Technologies, founded by VCU assistant professor of chemical and biomolecular engineering Leah Spangler, Ph.D. She is developing a cleaner, more efficient way to separate rare earth elements - critical materials used in electric vehicles, renewable energy and advanced electronics.

Activation Capital connected her with experienced life sciences executive Steen Nissen, allowing each to focus on their respective strengths.

"Steen brings expertise in business strategy and large-scale manufacturing that has greatly accelerated our progress toward commercialization," Spangler said. "I've learned a tremendous amount from working with him, and he's constantly advocating for the company and pursuing investment opportunities, which frees me to focus on advancing the science."

Example: Regenerating muscle

Activation Capital also connected entrepreneur Greg Merril to Michael McClure, Ph.D., a VCU associate professor of biomedical engineering. McClure's innovation centers on regenerating muscle tissue lost to traumatic injuries, and with the help of VCU TechTransfer and Ventures, he created a startup around it, Sarcogenics.

"I met with six or seven faculty innovators, all pursuing impressive scientific advances, but Sarcogenics immediately stood out," Merril said.

"His technology addresses a significant unmet clinical need, and the depth of preclinical data generated by Dr. McClure had already substantially de-risked the underlying science," Merril added. "Equally important, Michael brought an entrepreneurial mindset and a collaborative spirit that made him an ideal partner for translating academic innovation into a commercial venture."

Since the introduction, Merril has helped McClure build a commercialization strategy that includes a regulatory pathway, manufacturing strategy, fundraising plan and strategic partnerships.

Relationships can span years

Finding an executive is only one part of the partnership. "It's not just filling a position," said Steele, the Activation Capital CEO. "You're bringing together founders and entrepreneurs who will be working side by side for years. The chemistry has to be right."

P. Srirama Rao, Ph.D., vice president for research and innovation at VCU. (File image)

The collaboration between the authority and VCU has also been strengthened through a combination of federal and state funding, including support from GO Virginia. The economic development initiative helps Activation Capital provide entrepreneurial programming for founders and commercialization resources for emerging life sciences companies, whether the founder serves as CEO or partners with one through Pioneer Connect.

"I am confident that together, this growing partnership between VCU TechTransfer and Ventures and Activation Capital will help researchers understand the commercialization process, support proof-of-concept development, connect startups with mentors and investors and introduce faculty and entrepreneurs to the broader life sciences innovation ecosystem," Rao said.

The partnership's bigger picture

For Steele, the broader goal extends well beyond launching individual startups.

Michael Steele, president and CEO of Activation Capital. (Contributed image)

"We're trying to create an environment where great ideas don't leave Virginia, and those from outside the commonwealth are attracted here," he said. "When researchers, entrepreneurs, investors, institutions and industry work together, we create the conditions for companies to grow here, create jobs here and ultimately improve lives."

Metcheva said the partnership with Activation Capital reflects a shared commitment to helping more VCU discoveries reach the marketplace while strengthening Virginia's growing life sciences economy.

"No single organization can do this alone," she said. "By combining our strengths, we're creating a stronger pathway for discoveries to become products, companies and real-world impact."