UNM Foundation makes venture capital play

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Courtesy PPC

This black powder could change how fuel cells work. The company that makes it is part of a first-time funding round from the UNM Foundation.

Dan Mayfield

Reporter- Albuquerque Business First

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The University of New Mexico Foundation is now in the venture capital game.

The foundation has approved its first co-investment of $100,000 with Pajarito Powder LLC, a company using UNM technology to reimagine how fuel-cell motors work, Pajarito Powder CEO Tom Stephenson said.

"This is the UNM Foundation's first entry into this type of investment and partnership with the university, and we are pleased to be a part of this effort to help promote technology and entrepreneurship," Jennifer Kemp, communications manager for the UNM Foundation told Business First on Friday. "The $1 million allocation of funds is part of the Consolidated Investment Fund, the university's endowment which the foundation manages. Depending on how well this works, the board of regents and board of trustees may decide to make additional commitments with STC in UNM technology."

The $1 million co-investment fund is part of the $410 million Consolidated Investment Fund, and this is the first time CIF money has been invested like this, Kemp said.

"As investors, we hope to receive a return on investment, and it is quite possible that the return could be significant depending on the type of startup, but that is not the foundation's primary goal for participating," she said. "The goal is to partner with UNM in achieving its mission."

For Pajarito Powder, the $100,000 investment will give the firm more time to grow and develop its technology.

"It's going to give us a year's worth of additional runway to grow the business," CEO Tom Stephenson told Business First. The Verge Fund and local angel investors helped fund the company, he said.

505.348.8308 | dmayfield@bizjournals.com
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