New BioLife Fund Set to Invest in Life Sciences Sector

The Center for Innovative Technology this week started a venture fund that will invest in the life sciences sector. The new BioLife Fund is an outgrowth of CIT's growth acceleration program, a three-year-old fund that finances early-stage technology companies in Virginia.

Johnson & Johnson provided the initial investment of $250,000, which will be matched by CIT. The BioLife Fund will finance start-ups in the pharmaceutical, medical devices and health services fields, said Peter Jobse, CIT president and chief executive.

About a third of the companies that looked for financing through the original venture fund came from the biotechnology industry, Jobse said. CIT makes an investment of up to $100,000 and helps to trigger the interest of other angel investors or venture capitalists. CIT's growth acceleration program has invested in 17 firms since it opened in December 2004.

A large concentration of life sciences start-ups has come out of the Charlottesville area, in connection with the University of Virginia, as well as Richmond and Virginia Commonwealth University. About a third of the companies are setting up shop in Northern Virginia, with some scientists coming out of George Mason University.

"The fund is not specific to firms coming out of universities," Jobse said. "We would like this fund to address the needs of the community as a whole, not just one aspect. Technology doesn't necessarily roll out of the [university] labs."

Some venture capitalists are wary of financing life sciences companies because they take much longer to generate a profit or a return on the investment. Jobse said the "social mission" of the fund helps balance out the risk of a long-term investment.

"If it takes nine years and $100 million to produce a great drug, there may not be an immediate payback," he said. "There isn't necessarily a great return on the financial side, but there will be on the social side."

The new fund is looking to provide cash to first-time entrepreneurs with advanced intellectual property, he said.

LCC International Lives Up to Name

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LCC International, which provides consulting and network management services to the wireless industry, announced last week that it intends to purchase San Diego-based Wireless Facilities Inc. for $4 million in cash. LCC, based in Tysons Corner, said the acquisition will expand its presence in France, Sweden and Turkey while adding engineering capabilities to its business in the United Kingdom. Two months ago, LCC bought Belgium-based Detron to broaden its reach into Belgium and Luxemburg.

While the company has been expanding its presence overseas, its revenue took a hit last year. In 2006, revenues from continuing operations were $130 million, compared with $145 million in 2005. LCC said the drop was primarily due to the company's decision to go after more lucrative projects instead of depending on lower margin work.

The company reported a net loss of $5.5 million, or $0.22 per diluted share -- an improvement over 2005, when the company lost $12.5 million, or $0.51 per diluted share.

EDS Set to Buy India-Based Firm

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EDS, one of the largest information technology employers in Northern Virginia, said last week it will acquire Bangalore, India-based software testing firm RelQ Software. EDS, based in Texas, said the deal will expand its applications testing, validation and verification, and quality assurance services. The 700 employees who work for RelQ Software in India, the United Kingdom and the United States will become staffers of EDS, which has offices in Herndon. The purchase price was not disclosed, and the deal is expected to close in May.

Catch Kaine in Chantilly

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Gov. Timothy M. Kaine (D) is scheduled to speak about transportation legislation during the Dulles Regional Chamber of Commerce's monthly breakfast Thursday, March 22. Kaine plans to talk about his concerns about the transportation package passed recently by the General Assembly. The event will be at Westfields Marriott Hotel in Chantilly. To register, go to http://www.dullesregionalchamber.org.

Have news about business in Fairfax County? Contact Kim Hart at 703-383-5120 orhartk@washpost.com.