Devices & Diagnostics

Coordinate Capital mum on Minnesota biotech fund

Steve Burrill may have trouble keeping quiet about the proposed $1 billion fund to back the Elk Run BioBusiness Park, but at least one Burrill-related fund in Minnesota has largely remained silent on its plans. Coordinate Capital LLC has been trying to raise a $25 million local fund to invest in biomass, energy and life science startups. Ten months later, CEO and managing partner Andrew Pulkrabek has stuck to its guns -- by not saying anything. Which is not necessarily a bad thing.

Steve Burrill may have trouble keeping quiet about the proposed $1 billion fund to back the Elk Run BioBusiness Park, but at least one Burrill-related fund in Minnesota has largely remained silent on its plans.

MedCity News first reported in January that Coordinate Capital LLC was trying to raise a $25 million local fund to invest in biomass, energy and life science startups, including pharmaceutical and medical device companies, in Minnesota.

Ten months later, CEO and managing partner Andrew Pulkrabek has stuck to its guns — by not saying anything. Which is not necessarily a bad thing.

With Affinity Capital and Triathlon Ventures suspending plans for a $10 million early stage seed fund, and the $1 billion Elk Run fund still an open question, perhaps it’s a smart strategy for Coordinate to zip its lips until it has something to say.

Given the poor capital environment, I doubt Coordinate has raised anywhere near the $25 million. But as far I can tell, the firm is looking for deals.

Coordinate has a snazzy, sophisticated website that would suggest it’s serious about the fund.

From the site:

Minnesota has long been known as a global center for life science technologies. The State is also on the precipice of being a domestic and international leader in the biomass and renewable energy sectors. Critical to our State’s long-term prosperity is our support of the continued development of new and innovative technologies. Coordinate Capital looks to be a significant contributor to our State’s long-term prosperity by taking a unique approach to how idea, seed, and early stage capital investment is made.

Coordinate Capital incorporates all of these critical components as part of any investment we make. The firm has access to ‘best-in-class’ business and technology experts, who each understand what is involved in forming and operationalizing startup companies. We take active roles in stewarding companies forward not only by taking seats on the boards of directors and mentoring the young companies but also by deploying operational and best-in-class executive talent that are specific for the industry and stage of company. We have access to shared resources for office and lab/engineering space. Coordinate Capital serves as a comprehensive source for what seed stage companies need to be successful.

Coordinate Capital is focused on investing in Minnesota companies, technologies, and people. We seek to develop the technologies of “today” and the industries of “tomorrow”. Coordinate Capital is led by Minnesotans for Minnesota.

Sounds good to me. I especially like how the fund incorporates Minnesota’s long term economic prospects into its mission.

The real question, though, is how is Coordinate connected to Elk Run? Notice how the website says the firm has access to office and lab space. I wonder if its talking about the BioBusiness Park.

Coordinate counts Burrill & Co. as its “partner,” and Elk Run and Tower Investments as “affiliates,” though I’m not sure exactly what that means.

I’m also surprised that Burrill himself has not spoken about Coordinate, given his public relations push in recent weeks to demonstrate the money and resources he already has brought to Minnesota. Given Coordinate’s mission, this sounds like something Burrill would want to highlight.

But then again, perhaps Coordinate’s fate is tied to Elk Run. And as long as Coordinate doesn’t say anything, that presumably means the fund, or at least plans for it, still exist.

And in this poor economy, no news is good news.

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