Fund founder Jim O’Reilly says it was “fairly impossible” to raise money. For O’Reilly, explaining Upwind to potential investors proved to be a challenge in itself. For one thing, O’Reilly insisted Upwind was not a “fund” but rather a “new model” for developing startups.

Affinity Capital Management in Minneapolis and Triathlon Medical Ventures in Cincinnati have suspended efforts to raise a $10 million early stage seed fund in Minnesota. “We’re not shutting it down, we’re putting it on pause until we can figure out what to do,” Triathlon managing partner John Rice told MedCity News.

Updated 6:47 p.m.Small molecule discovery and development company Akebia Therapeutics Inc. reported positive results from a second Phase 1 clinical trial of its anemia drug, as well as the second closing of a $16 million financing round announced almost a year ago, boosting the round to $17 million.var page_count = “off”; [...]

Cleveland Clinic spinoff Tolera Therapeutics Inc. has raised more than $4 million in equity to continue developing a drug that fights organ rejection in transplant patients, according to a regulatory filing with the Securities and Exchange Commission.The Series B funding will go toward a Phase 2 clinical trial of Tolera’s lead drug candidate, TOL101, said [...]

The new $10 million early stage venture fund jointly run by Affinity Capital Management in Minneapolis and Triathlon Medical Ventures in Cincinnati finally has a name: Northern Lights Seed Capital.From managing partner Barbara Nelsen’s LinkedIn profile:Northern Lights Seed Capital, LP is a venture capital limited partnership, headquartered in Minneapolis, Minnesota. The Fund has been established [...]

If patience is a virtue, then Minnesota venture capitalists have become downright saintly.Faced with a weak economy that has stifled initial public offerings and mergers and acquisitions, local investors are still looking for exits well after the funds have closed. Throw in tougher regulatory scrutiny for medical devices and drugs and an exit can suddenly [...]

Another day, another new local early stage fund.Upwind Medical Partners is launching a $6 million to $8 million early stage fund that will focus on commercializing intellectual property from health care/research institutions like the University of Minnesota, Wisconsin Alumni Research Fund (WARF), Allina Hospitals & Clinics, and John Hopkins Hospital in Baltimore.Founded by Jim O’Reilly, [...]

Affinity’s fund is not tied to a specific incubator, which means the firm will cast a larger net for start-ups. Given its history of investing exclusively in late stage companies, Affinity’s move could provide Minnesota’s early stage entrepreneurs a real shot in the arm.

The Ohio Third Frontier program is likely to pay for itself by 2014 with income and sales taxes generated by organizations receiving its grants, according to an analysis led by business people on the program’s commissioners and advisers. Third Frontier is the $1.6 billion, 10-year program to develop Ohio’s technology economy — largely with taxpayer money — through industries including biomedical.

The company is in the midst of a Phase 2 trial on an ovarian drug that works with women who have developed resistance to chemotherapy. Data from the study will be available as early as mid-2010.