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Allied Minds Announces Groundbreaking Agreements with U.S. Dept. of Defense Federal Labs & FFRDC

11-Sep-2012

The historic agreements with U.S. Army RDECOM, Naval Surface Warfare Center, Crane Division and The Aerospace Corp. will create a new process for the smooth and efficient transfer of leading technologies to the commercial marketplace, and marks the first public-private partnership formed as part of the Defense Department’s new initiative to use its R&D resources to benefit the nation’s economy.

Boston, MA – Allied Minds, a premier U.S. investment company, is pleased to announce that it has reached agreements with U.S. Department of Defense federal laboratories and research centers to create a series of groundbreaking public-private partnerships that will use technology transfer as a driver for economic growth and spur the global competitiveness of U.S. industry.

Boston-based Allied Minds, through its new subsidiary Allied Minds Federal Innovations Inc. (AMFI), has reached agreements with U.S. Army RDECOM (Research, Development, and Engineering Command), Naval Surface Warfare Center, Crane Division (NSWC Crane), and The Aerospace Corp. to create a new process for the transfer and commercialization of some of those labs’ leading technology innovations.

Allied Minds is the only U.S. private investment firm to reach agreements with federally funded labs as part of a new initiative by the Defense Department to use its research and development resources to benefit the nation’s economy. These partnerships extend beyond the norm for typical commercialization agreements: Each agreement creates a partner-tailored platform for successful technology transfer and new-company growth. Traditionally, intellectual property and cooperative research and development agreements (CRADAs) were devised to connect agencies with private companies to develop only a single product or service.

The agreements build on a partnership that AMFI formed earlier this year with The Edgewood Chemical Biological Center (ECBC) to collaboratively research and develop new and existing intellectual property (IP) to produce commercial products, services and technologies. Under terms of all the agreements, AMFI will review technologies with commercial potential and license their use. The firm will then fully fund the establishment of new businesses to develop commercial applications for those innovations. The start-up companies that will be formed by AMFI across the U.S. will provide an important boost to local economies and a new source for job growth.

Allied Minds plans to initially deploy $100 million in the partnerships and anticipates establishing through its investment model 20 companies in the first year. Allied Minds aims to create a system that facilitates growth with the help and talent of other companies, investors and those with management expertise. At scale, the investment firm expects to develop as many as 100 companies a year.

“Federal research labs have long been a rich source of invention and innovation, and we believe that their intellectual output represents an underutilized national asset. Through our unique collaboration with these research facilities, AMFI will facilitate the successful transfer of new technologies to the commercial marketplace, keeping the U.S. at the forefront of technological innovation, and creating new opportunities to build businesses and jobs,” said Chris Silva, Chief Executive Officer of Allied Minds.

RDECOM manages more than 11,000 engineers and scientists that oversee research in such areas as human robotic interactions and advanced energy. The approximately 2,600 scientists at Aerospace Corp. of El Segundo, California, provide independent technical and scientific research and advisory services to the U.S. Air Force and a number of government agencies, including NASA. NSWC Crane is the third-largest navy installation in the world and develops innovative, leading-edge technical solutions with its more than 2,000 scientists, engineers and technicians.

“By partnering with AMFI, the Center is now poised to help improve the commercialization of critical technologies and also potentially stimulate our nation’s economy,” said Joseph D. Wienand, Acting Deputy Director of RDECOM.

The agreements formed between AMFI and the federal research centers aim to create a smooth and efficient system for technology transfer, dramatically increasing the general public’s access to the labs’ intellectual property. AMFI has conducted brainstorming sessions between the investment firm’s commercialization experts and the labs’ scientific leaders in order to direct new research and development and collaboratively develop new IP.

“This new technology transfer process will also provide a new benefit for the labs, allowing them to receive a return on taxpayer dollars without disrupting the mission-critical work they perform for the federal government,” said John Serafini, Director for AMFI.

Allied Minds was tapped as a trusted partner by the federal labs because of its proven unique investment model, which focuses on forming, funding and building stable and successful companies and jobs for the long term.

Allied Minds takes an ownership stake in each business it forms, and provides all funding and management so that it’s intimately involved at each stage of strategy and growth. Allied Minds currently works with more than 40 universities on a similar commercialization structure, and has provided funding and management expertise for the creation of more than 20 companies during the past six years. These businesses have so far generated at least 200 jobs across the U.S., and include:

  • Sound Cure – a maker of the first FDA-cleared device for treating tinnitus (San Jose, CA)
  • Spin Transfer Technologies – a technology company that’s poised to produce the first universal   computer memory (San Jose, CA)
  • Optio Labs – a company that builds transformational mobile security technologies for the federal and   corporate enterprise (Nashville, TN)
  • RF Biocidics – a company that offers a sustainable system for sanitizing and pasteurizing foods through the use of radio waves (Vacaville, CA)
  • SiEnergy Systems – a company developing thin film low temperature solid oxide fuel cells for affordable, clean energy (Boston, MA)
  • SciFluor Life Sciences – a drug development company that adds fluorine to therapeutics to improve drug profiles (Boston, MA)

We bring a unique ecosystem of capital, management, and long-term commitment to value creation,” Silva said. “Our partnership with the labs will allow us to help open new doors for company creation, providing a new basis for stimulating the U.S. economy through innovation.”


About Allied Minds
Allied Minds is a U.S. investment firm that deploys private equity to form, fund, manage and build start-ups based on early-stage technologies developed at renowned U.S. universities and federal research institutions. Allied Minds serves as a diversified holding company that supports its businesses with capital, management and shared services and is the premier investment firm to utilize this novel and fully integrated approach to technology commercialization. More information about the Boston-based company can be found at www.alliedminds.com.

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