ANN ARBOR – The Executive In Residence program has named the Southwest Michigan First Life Science Fund as its most recent loan award recipient. The EIR program was developed in 2007 by the Michigan Venture Capital Association to help Michigan venture capital firms support the placement of qualified leadership, an EIR, into a firm’s operations. The amount was not disclosed.

The Kalamazoo-based SWMF Life Science Fund will receive a loan to partially support the annual salary of EIR Paul Neeb. Neeb, formerly with Pfizer and most recently a vice president with the Fund’s General Partner, Southwest Michigan First, will identify and then join a new SWMF Life Science Fund portfolio company within one year.

“Paul has all the requisites for a great CEO – years of experience in the life sciences sector, a background in commercialization and an understanding of the practical side of running a business,” said Patrick Morand, Managing Director of the SWMF Life Science Fund. “We expect him to find several potential portfolio companies, perform the due diligence on the most interesting opportunities and lead the one that’s best fit. We’re betting on him.”

A graduate of the Kellogg Graduate School of Management at Northwestern University, Neeb spent most of his career with GD Searle (later Pharmacia and Pfizer) in finance, sales and leadership roles. Most recently, Neeb served as vice president at Southwest Michigan First, supporting the life science cluster, working with early stage companies and founding First Angels, a Kalamazoo-based angel group.

“My background is both leading and building companies that are close to commercialization. This experience is applicable to medical device firms or companies nurturing technology that’s further along in the regulatory process�??but I’m open to other opportunities,” Neeb said. “I’m already guiding ten life sciences companies through our investment process. Whether any ultimately join our portfolio or not, I feel very optimistic that we will find the right investment target for the fund, as well as an appropriate leadership role for me.”

Morand credited the MVCA and the State of Michigan for allowing funds like the SWMF Life Science Fund to access capital to retain and nurture high-level talent: “Paul is highly motivated and extremely disciplined, and he’ll make a great CEO for an early stage life sciences company. Thanks to the MVCA and the MEDC, we are able to make that happen.”

Neeb agreed: “I feel extremely blessed to be given this opportunity. The full support of the MVCA, MEDC and SMF will ensure that my experience is a success and hopefully pave the way for other individuals to be given similar opportunities.”

The SWMF Life Science Fund follows a slightly different capital model from the standard venture fund, accessing capital on a rolling subscription basis. Morand says the fund’s limited partners are keenly interested in venture investing right now, given the industry’s low valuations and a talent surplus in the region. The portfolio includes companies working in therapeutics, medical devices, bio-IT, ag-bio and diagnostics.

The SWMF Life Science Fund is the fourth Michigan venture capital firm to receive the MVCA EIR award. Past awardees include Arboretum Ventures, Plymouth Management Company and Venture Investors.

The MVCA received a 21st Century Jobs Fund award from the MEDC to implement the EIR and CEO Placement programs. This grant award allows the MVCA and the MEDC to work together to foster an environment to help entrepreneurs and Michigan-based venture-backed companies succeed. Under the EIR program, Michigan venture capital firms may apply for a loan award to assist with the first year salary of an EIR. Under the CEO Placement program, the loan award may be used to pay the one year salary of a newly recruited CEO in one of their Michigan-based portfolio companies. The CEO Placement loan award may also be applied toward the recruiting fees incurred in finding an entrepreneurial CEO.

For information about the MVCA EIR or CEO Placement programs, visit the spotlight section at MichiganVCA.Org

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