University Daily Kansan / Friday, February 26, 1988
Venture capital is financing University research projects
Companies give money,hoping for product marketability
By Dayana Yochim Kansan staff writer
Kansan staff writer
Financing provided through a venture capital company might give KU students access to a new state-of the art sound studio as early as next February.
The sound studio would be established through technology developed at Oread Entertainment Group Inc. 1321 Wakara Drive, and financing for the project would be provided through Campbell-Becker, a Lawrence-based venture capital company.
New developments created through research at the University of Kansas often result in marketable products, but developers must rely on outside sources to "commercialize" those products.
The sound studio is just one example of new opportunities available to KU staff and faculty through venture capital companies.
Venture Medical Associates and Campbell-Becker both have established agreements with KU in which they review developed technology and determine its market possibility and also can seek financial sources for projects or establish new companies when or project is a big success.
Charles Becker, partner in Campbell-Becker, said his company's agreement with KU was informal. "We have a broad relationship with the University," Becker said. "We are just at the threshold of this relationship, but our main focus is in advanced technology."
Becker said the company was in the final process of establishing financing for a new sound studio with the Oread Entertainment Group.
"We're hopeful that after the completion of the funding, we will break ground in late spring or early summer," Becker said.
He said his firm also was working
on a computer software project developed through the Kansas Geological Survey.
Vickie Thomas, University general counsel, said the relationships with venture capital companies were fairly new for the University.
"We have an agreement with them that they are able to look at technology developed at the University." Thomas said. "If the specific research results in a product, device or drug that is marketable, they find a group of investors to market the technology."
9
Thomas said the University saw research as a teaching tool and a public service.
Under the Regents patent policy, a person who conducts research at the University must sign a patent to the University. The researcher gets a portion of the profits if a product is marketed, Thomas said.
"Our primary function is not to make money, but there are situations when the University has developed a marketable product," Thomas said. "The purpose of the research is ultimately as a teaching device."
Martin Smoler, general partner of Venture Medical, said his company offered a $30 million investment.
Venture Medical has a two-year contract, signed in July, 1987, with the University of Kansas Medical Center.
"We have met with most of the departmental chairmen and are in the process of compiling a list of opportunities for further speculation." Smoler said.
He said that his company was considering between 20 and 30 options at the Med Center but that Venture Medical was just starting to establish a working relationship with KU.
"It's a several-year process. If one company is started in 1888, that will be completed by 1952."
examined 88 opportunities and committed to one." Smoler said. "Research is even a smaller needle in a bigger haystack."
Smoler said that he met with people from the Lawrence campus and that he also was interested in putting on a market any technology developed here.
"We want to help foster business growth in Lawrence, and we have no intentions of competing with Campbell-Becker." Smoler said. "If we don't put in all the money, we will syndicate the deals with other venture capital companies."
Becker agreed that his company was not competing with Venture Medicine.
Al Chapman, dean of graduate studies and research at the Med Center, said venture capital companies provided a conduit for the Med Center's research.
"It is mutually beneficial with three parties," Becker said. "There's a possibility for us both to fund projects, secure financing and provide a financing package for the University."
"They're providing a way to transfer technology from our lab to a laboratory as a hospital," Chapman said. "Other's it sits in a laboratorium without use."
Chapman said he was encouraging the faculty to become aware of venture capital.
"The investigator should have a number of options." Chapman said. "If they find a better avenue, then they should take it."
But he said faculty members had to be careful not to become carried ahead.
"We have to keep the basics intact," Chapman said. "We're here to teach. We still do research for the sake of research."
Concert to feature Dead Milkmen
Kansan staff writer
By Jeff Suggs
The Milkmen, along with Yo La Tengo and Foodhead, will play at the Kansas Union Ballroom at 8 p.m. The band is on tour to promote its latest release, "Bucky Fellini."
The Philadelphia band Dead Milkmen will bring its version of satisternic bark to campus tomorrow night.
Tickets are $5 in advance and $6 at the door with a valid KUID. Tickets for the general public are $6 in advance and $7 at the door.
"Instant Club Hit," a parody of dance music, attacks artsy British bands such as the Communards and Depeche Mode.
The Milkmen include vocalist Rodney Anonymous, guitarist-vocalist Joe Jack Talcum, bassist Dave Blood and drummer Dean Clean. They have several college radio hits, such as "Takin' Retards to the Zoo," "Bitchin' Camaro," "The Thing That Only Eats Hippies" and "Instant Club Hit (You'll Dance to Anything)."
"Overall in college radio, they are very popular because they are not afraid to blatantly make fun of people," said KJHK station manager Brad Schwartz. "The Dead Milkmen are a band that are hanging on to their youth, and they refuse to let go of it."
Local record stores were upbeat about sales.
"They sell pretty well," said Steve Wilson, manager of Kief's Discount Records and Stereo Supply, 2100 W. 25th St., "For a band that's more or less a college radio, alternative kind of band, they sell pretty consistently."
Peter Gray, manager of Pennylane Records and Tapes, 844 Massachusetts St., said sales of Dead Milkmen albums had been steady.
"It'll probably pick up after the show," Gray said. "It's a pretty hot item."
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