March 9, 2001
To support and encourage the development of new St. Louis science-and-technology companies, the University's Board of Trustees will invest up to $40 million of the institution's endowment in St. Louis-based venture capital funds, according to Chancellor Mark S. Wrighton. The Trustee Investment Committee made the decision at its March 2 meeting.
"The focus of the University's strategy is to encourage investment in science-based companies, with the objective of helping establish the St. Louis region as a center of science-and-technology-based industries," Wrighton said.
"With the wise counsel and strong support of the Trustees --especially Board Chair John F. McDonnell and Investment Committee Chair John H. Biggs --we see this as a way to parallel the University's strength in science and research with the region's potential to grow as a magnet for high-technology business and industry," he said.
As generators of ideas and inventions, the faculty scientists of the University and other St. Louis research institutions seek to stimulate the transfer of important discoveries and technology from their laboratories to the public, Wrighton said.
"The University is the region's largest research enterprise, and many of the innovations discovered by our faculty will benefit from strong technology-based enterprises in St. Louis," Wrighton said.
The funds invested by the University will only go to venture capital funds, not the actual high-technology businesses themselves.
"Our strategy is to select a few strongly committed venture capital funds in the St. Louis area and then to invest in each based on its future potential," said Barbara Feiner, vice chancellor for finance.
"The Trustees will develop a process through which the University will select the venture capital firms, monitor their progress, and assure that their activities are consistent with the University's expectations for the use of these funds," said McDonnell, the retired chairman of the board of the former McDonnell Douglas Corporation.
Feiner added, "We believe this effort will bring great benefit to our region, and --if successful --will help advance high-technology businesses. We also hope to influence other funding sources in the St. Louis region to do the same. As with all of our endowment investments, we want this effort to be successful in supporting the important benefits that the University's endowment provides our students and faculty --such as scholarships, endowed professorships and general academic program support."
"We believe in the potential of St. Louis, and we hope this will encourage other local institutions and pension funds to invest in a successful future for businesses and for science and technology in the region," McDonnell said.
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