Venture capital fund meeting development goals

by Heather Hayes
for Virginia Business
July 2005

The Virginia Tech Foundation, Carilion Health Systems and several other companies set up a private equity/venture capital fund last year to attract promising information-technology and life-sciences companies to the Roanoke and New River Valley areas. The fund appears to be getting the job done.

Last year, a $850,000 offer by NewVa Capital Partners persuaded biotech firm Geno-matix Corp. to relocate its research and production facilities from Cincinnati to Roanoke. Then earlier this year, fund managers rewarded Geno-matix with another round of financing, $500,000.

Bob Beech, CEO of Genomatix, said the company will use this latest investment to bolster sales and marketing of its proprietary genetic tools. “It’s giving us a chance to really shift gears in terms of market momentum,” he says.

The seven-employee firm took in revenues of $7 million last year while selling to national and international researchers. Beech noted that the firm’s move to Roanoke has been positive. “They’re trying to create a thriving life-sciences community here, so the attitude we’ve experienced has been very welcoming,” he says.