State Funded Missouri Startup Fund Sees Cut in Budget Allocation

David Nicklaus indicated today in the St. Louis Post Dispatch that, “When Pfizer shut down its St. Louis research operation in 2010, Joseph Monahan decided to stay.

“He founded a new company, Confluence Life Sciences, that now employs 40 scientists, including many ex-Pfizer colleagues. Confluence has attracted millions of dollars of capital from firms in Texas and Maryland and has built a successful contract-research business while working on its own new drugs, which show promise in treating autoimmune disorders and colorectal cancer.

“It wouldn’t exist, Monahan says, without the state-funded Missouri Technology Corp. MTC has invested $1.4 million in Confluence, including critical seed money back in 2011.”

The article indicated that, “MTC has made similar investments in 90 agriculture, technology and medical startups, the majority of which are in the St. Louis area. It has cashed out of a few, including Yurbuds, the ear-bud maker that was sold in 2014.

Leaders of startup-support organizations, which are also funded by MTC, cite the state money as a major accelerant behind St. Louis’ entrepreneurial renaissance. Without it, they say, we wouldn’t have so many new firms popping up in places such as downtown, the Cortex district and Creve Coeur.

“The money, however, is about to slow to a trickle. The Legislature cut MTC’s appropriation to $2.5 million for fiscal 2018, which begins July 1, from nearly $23 million this year.”

The Post Dispatch article added that, “Officials haven’t decided how to allocate the smaller pot of money. The MTC funds three main programs: operating funds for innovation centers; grants to support groups such as Arch Grants and ITEN; and direct investments in startup companies.”

This entry was posted in Start-up Company Law. Bookmark the permalink. Both comments and trackbacks are currently closed.