Penn is launching its second funding source for university-affiliated companies in the last two months — this time to support local life sciences startups.
The University of Pennsylvania announced today a new $50 million fund managed by local venture firm Osage University Partners and in partnership with global biopharmaceutical company BioNTech. Called the Penn-BioNTech Innovative Therapeutics Seed (PxB) Fund, this initiative aims to support early-stage life science companies spun out of the university.
“[The fund] will allow us to move faster and more intentionally to support our faculty and other members of our research community as they build high-impact life science companies here in Philadelphia and beyond,” John Swartley, chief innovation officer at the University of Pennsylvania, said.
The PxB Fund will distribute seed and Series A investments to university researchers developing therapeutics, diagnostics, digital platforms and research tools.
Penn already has a reputation for spinning out successful life science companies, like the region’s gene and cell therapy darling Spark Therapeutics. Oncologist and researcher Carl June, notable for his work developing the first CAR T-cell therapy approved by the FDA, is also affiliated with the university.
The announcement of the fund follows Penn’s launch of its StartUP Fund in December. This $10 million investment fund also aims to support early-stage companies spun out of university research.
“If we can nurture and establish companies that set down roots here and grow here into major successful businesses,” Swartley previously told Technical.ly. “That’s great, not only for Penn and our technology and our faculty, but it’s great for the local economy.”
Life sciences startups struggle to secure funding
This funding comes at a time when life sciences companies face a scarce VC landscape.
The region’s life sciences community experienced wins last year, like investment from major players Eli Lilly and Thermo Fisher Scientific. But 2025 also saw major layoffs and local companies shutting down.
While the region touts its success in research and workforce development, local companies still struggle to bring in cash, especially from local investors. In general, venture capital was hard to come by in 2025 as the market fluctuated.
Sectors like cell and gene therapy are especially expensive to push forward, but all life sciences companies need money to keep going.
“This is an industry that runs on capital,” Ira Spector, CEO of SFA Therapeutics, previously told Technical.ly. “It requires capital to prove that a drug or a therapeutic or a diagnostic or device works.”
