Todd McLean stands in front of Beck Venture Center, a Colorado School of Mines hub that provides support for startups. (Max Scheinblum/BusinessDen)
The Colorado School of Mines thinks it’s dug up a gem.
The Golden engineering and science institution is set to raise $10 million in venture capital money to deposit in Mines-affiliated startups.
“We want to be well recognized and we want to contribute research to further the human mind and advancements in all kinds of fields,” said Todd McLean, who will manage the fund. “And we also want to have an equal dedication and commitment to taking those ideas to reality.”
McLean said about $3 million has been raised so far for the aptly named Mines Venture Fund I and he hopes to add $7 million more by the end of the year.
Though universities with a venture arm aren’t uncommon at high-level research institutions like Mines, where the engineering school plans to put profits is.
The 20% “carry” fee that venture firms usually take off returns will go to the school’s foundation and be used for things like scholarships and programming.
“In every environment I’m aware of, the (general partners) are outside individuals who have been in VC themselves,” McLean said, referring to other university venture arms, like the University of Colorado Boulder-affiliated Buff Gold Ventures.
“(The money) could go back to a lot of things, and it simply reinforces the ecosystem of helping engineers and applied scientists become entrepreneurs and innovators,” added McLean, who also is the managing director for business enterprise at the Colorado School of Mines Foundation.
He said he is optimistic the fund will see returns on the $50,000 to $200,000 checks it plans to write.
Though anyone can invest in the fund, its portfolio will almost entirely comprise companies founded by Mines students, faculty or alumni. McLean said businesses that spin out of West Gate, a two-year entrepreneurial program at the federally funded National Renewable Energy Laboratory in Golden, will also be considered.
All of those startups will be in the pre-seed or seed stage, which means they either are not selling a product yet or have less than $1 million in annual revenue. McLean said business students will help with the due diligence process in what he considers a win-win for the academic, research and entrepreneurial aspects of the school.
“If the founders have a background in applied science and/or engineering, areas that (Mines) has strong disciplines in, then we’re willing to look at the startup,” McLean said.
McLean said the fund already has invested in four companies, including GelSana, which was founded by Mines professor Melissa Krebs and makes a highly elastic wound treatment.
The other three are Infinite Outdoors, a hunting and fishing tool that connects landowners with outdoor enthusiasts; AndrenaM, a maritime drone monitoring company; and XtremeX Mining Technology, whose tech aims to speed up the mining process.
“Ideally, we have a unicorn, and that creates a return for our (investors) and creates profit that gets recirculated into the program to benefit the next generation,” McLean said.
McLean has extensive experience in the startup world, having founded a data analytics company in the early 2000s before leading turnarounds at two fledgling companies. He then went into banking, most recently working for a subsidiary of BOK Financial, before starting at Mines, where his two sons went, in late 2023.
He came on months before the April 2024 opening of the Beck Venture Center, a university hub providing support for startups. McLean said the Beck building is home to 53 companies and several hundred members, including venture capitalists, attorneys, faculty and students.
McLean hopes to raise Mines funds every three to five years to create a “virtuous cycle” of capital and entrepreneurial pursuit alongside Beck.
“The goal is to set a solid platform,” McLean said. “And then we can make it even stronger, be more influential in the world and have more advancements taking place.”
Todd McLean stands in front of Beck Venture Center, a Colorado School of Mines hub that provides support for startups. (Max Scheinblum/BusinessDen)
The Colorado School of Mines thinks it’s dug up a gem.
The Golden engineering and science institution is set to raise $10 million in venture capital money to deposit in Mines-affiliated startups.
“We want to be well recognized and we want to contribute research to further the human mind and advancements in all kinds of fields,” said Todd McLean, who will manage the fund. “And we also want to have an equal dedication and commitment to taking those ideas to reality.”
McLean said about $3 million has been raised so far for the aptly named Mines Venture Fund I and he hopes to add $7 million more by the end of the year.
Though universities with a venture arm aren’t uncommon at high-level research institutions like Mines, where the engineering school plans to put profits is.
The 20% “carry” fee that venture firms usually take off returns will go to the school’s foundation and be used for things like scholarships and programming.
“In every environment I’m aware of, the (general partners) are outside individuals who have been in VC themselves,” McLean said, referring to other university venture arms, like the University of Colorado Boulder-affiliated Buff Gold Ventures.
“(The money) could go back to a lot of things, and it simply reinforces the ecosystem of helping engineers and applied scientists become entrepreneurs and innovators,” added McLean, who also is the managing director for business enterprise at the Colorado School of Mines Foundation.
He said he is optimistic the fund will see returns on the $50,000 to $200,000 checks it plans to write.
Though anyone can invest in the fund, its portfolio will almost entirely comprise companies founded by Mines students, faculty or alumni. McLean said businesses that spin out of West Gate, a two-year entrepreneurial program at the federally funded National Renewable Energy Laboratory in Golden, will also be considered.
All of those startups will be in the pre-seed or seed stage, which means they either are not selling a product yet or have less than $1 million in annual revenue. McLean said business students will help with the due diligence process in what he considers a win-win for the academic, research and entrepreneurial aspects of the school.
“If the founders have a background in applied science and/or engineering, areas that (Mines) has strong disciplines in, then we’re willing to look at the startup,” McLean said.
McLean said the fund already has invested in four companies, including GelSana, which was founded by Mines professor Melissa Krebs and makes a highly elastic wound treatment.
The other three are Infinite Outdoors, a hunting and fishing tool that connects landowners with outdoor enthusiasts; AndrenaM, a maritime drone monitoring company; and XtremeX Mining Technology, whose tech aims to speed up the mining process.
“Ideally, we have a unicorn, and that creates a return for our (investors) and creates profit that gets recirculated into the program to benefit the next generation,” McLean said.
McLean has extensive experience in the startup world, having founded a data analytics company in the early 2000s before leading turnarounds at two fledgling companies. He then went into banking, most recently working for a subsidiary of BOK Financial, before starting at Mines, where his two sons went, in late 2023.
He came on months before the April 2024 opening of the Beck Venture Center, a university hub providing support for startups. McLean said the Beck building is home to 53 companies and several hundred members, including venture capitalists, attorneys, faculty and students.
McLean hopes to raise Mines funds every three to five years to create a “virtuous cycle” of capital and entrepreneurial pursuit alongside Beck.
“The goal is to set a solid platform,” McLean said. “And then we can make it even stronger, be more influential in the world and have more advancements taking place.”
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