05 Aug Eli Lilly’s venture arm spins out with $200M fund
Posted at 09:03h in Biotech, Digest, Venture Capital 0 Comments
Lilly Ventures, the venture capital arm of Eli Lilly & Co., has spun out from its parent in an effort to compensate its members more like a traditional venture firm.
As part of the spinout, completed May 1, Lilly Ventures secured $200 million from its corporate parent to invest in new companies and to support its existing portfolio.
The move enables the firm’s investment team to earn carried interest and positions Lilly Ventures to compete with other firms for talent, Managing Director S. Edward Torres told VentureWire. Lilly Ventures, formed in 2001, previously could not take a cut of the profit from its investments because Lilly’s compensation policies did not permit it, he said.
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