The University and Stanford Hospital & Clinics have formed a partnership and investment fund with the StartX organization, a nonprofit Silicon Valley start-up accelerator providing guidance to Stanford-affiliated entrepreneurs. Founded on campus by students in 2009, StartX will receive a three-year, $3.6 million grant through the arrangement. The separate investment fund is unlimited.
StartX's program has worked with entrepreneurs in numerous industries and includes a division focused on medical and biotechnology ventures. The $1.2 million annual funding from Stanford, which will help support staffing and programming efforts, is in addition to $1.65 million raised by the organization over the past two years.
The Stanford-StartX fund investment vehicle is available to entrepreneurs who meet "a set of clear and objective criteria." It also marks the first time the University or hospital has developed a fund to invest directly in entrepreneurs emerging from throughout the Stanford community. The fund will not take lead roles in company financing, but will participate as a minority investor alongside other venture capital and angel investors.
