Purdue to invest in start-up
of new software company
By Anna Herkamp
Summer
Reporter
For the first time in Purdue's history, the University
is investing in a start-up company founded on University-licensed technology.
Integrated Process Solutions, a company co-founded
by Venkat Venkatasubramanian, professor of chemical engineering, was
given $250,000 from the Purdue Research Foundation's Office Trask Pre-Seed
Capital Program.
Integrated Process Solutions will specialize in
software that helps industrial plants stay within regulations from the
Food and Drug Administration and the Occupational Safety and Health
Administration.
"Just like when you cook food in your kitchen,
there are very specific instructions for every step in the manufacturing
process with little to no room for deviation," Venkatasubramanian said
in a recent press release. "Our software can help synthesize these instructions
and analyze the potential hazards in an automated manner."
Purdue will be rewarded for its investment with
shares of stock in Integrated Process Solutions.
How much money will be returned to Purdue is hard
to determine, according to Lisa Kuuttila, vice president of the Purdue
Research Foundation. The earlier a company is invested in, the higher
the risk, she said.
The money given to the company would be used for
start-up, or "pre-seed" expenses. These expenses would pay for initial
expenses like salaries, space cost, equipment for computers or manufacturing
needs, legal costs and operating expenses, said Kuuttila.
Purdue chose Integrated Process Solutions as an
investment because it met certain criteria such as having good potential,
said John Schneider, assistant vice president of Research.
The advisory committee for the Trask Program is
made up of 12 people including four venture capitalists who specialize
in the financial aspect. For a company to be considered for a Trask
pre-seed investments, they must meet three main criteria.
They must be based on Purdue-licensed technology,
owned or co-owned by a faculty member and be located in Purdue's Research
Park.
Schneider said this type of investment is good
for Indiana as well as West Lafayette's economy. "We want to supply
high tech jobs for the area and also provide an entrepreneurship environment
so students can look into going into business for themselves."
Having Purdue as an initial investor can help a
start-up company by attracting future investors. "People seem kind of
hesitant to be the first investor," said Venkatasubramanian.
The Trask program has supported professors in other
ways besides giving them money to start a company. Its innovation awards
allow students and faculty to submit ideas for patents.
Programs like these contribute to Purdue by allowing
faculty and students to capitalize on their ideas in the high tech fields,
said Schneider.
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