some of the cells it produces through its synthetic biology platform, Fishburne says. Through advanced genetic engineering, Bell Biosystems has introduced an artificial, self-replicating organelle into cells. These synthetic spheres called Magnelles attract iron and generate a magnetic nanoparticle. The cells can then be tracked in the body through magnetic resonance imaging (MRI). Researchers might use such cells in preclinical studies to follow the fate of cell transplants in the body. Bell is also testing methods of selectively destroying cells containing Magnelles with heat from external magnets.
As its near-term project, CytoVale is working with UC San Francisco researchers to develop a diagnostic test for sepsis, a life-threatening over-reaction of the immune system to an infection. The condition is hard to diagnose, and even a half-hour’s delay in treatment can significantly affect a patient’s outcome, Shah says.
Pareto is pursuing partnerships with food flavoring companies to develop yeast cells that can produce traditional flavor compounds at lower cost, or make molecules that deliver a novel taste, Mendez says. [Corrected 11/27/13: A previous version of this paragraph stated that Pareto has already formed partnerships with food flavoring companies.]
Fishburne describes the Breakout Labs financing model as “impact investing,” to distinguish it from the practices of venture philanthropists who invest in non-profits. Startups chosen by Breakout Labs receive tax-free “philanthropic dollars,” and in turn agree to contribute to Breakout’s revolving fund for the support of future startups.
The grant recipients agree to return a 3 percent royalty on sales to Breakout Labs after their revenues exceed $100,000. The royalty payments are capped at three times the original grant. Breakout Labs also receives an equity stake in the companies according to a standard formula in the agreement. The startups retain intellectual property rights, but if a company folds, Breakout Labs would gain non-exclusive rights to commercialize its inventions.
The targeted return for Breakout Labs is 50 percent of the money it invests, Fishburne says. The program expects to wait a while for its money.
“We’re in for the long haul because we’re pushing really good ideas early,” she says.
