‘Venture philanthropy’ is catching on

A common trajectory for an idea in biotech goes like this: A nonprofit funds some research, the researcher meets an entrepreneur, the two get involved with a venture capitalist, and then a company is born.

But more and more nonprofits want to get closer to the action, which means buying stakes in startups in hopes of making a return and funding more research. As STAT’s Rebecca Robbins reports, the latest is the Christopher and Dana Reeve Foundation, which is planning to raise $50 million to invest in companies working on treatments for spinal cord injuries.

The decision follows those of JDRF, which has been backing type 1 diabetes companies since 2017, and the American Cancer Society, which last year launched a fund called BrightEdge to invest in oncology startups.

Read more.