Fund Structure
Unlike traditional venture funds, NextStep is structured as both a 501 (c)(3) non-profit and an LLP. Doing so allows philanthropic donations to fund the 501(c)(3), which in turn acts as the sole LP for the NextStep Ventures LLP. NextStep Venture Fund invests in start-ups and investment returns are paid back to the nonprofit.
We will make pre-seed and seed investments and discretionary follow-on investments. The fund life is 10 years with a 2-year extension and a 5-year commitment period. We will also make select investments in late-stage clinical research which has significant translational potential. To maximize investment efficiency, NextStep Ventures does not charge management fees. However, we budget our expenses and will draw those expenses from the 501(c)(3). The fund will retain a small carried interest and this will be used to incentivize scientific advisory board members and staff.
Deal Flow
We source deals by networking with translational research centers such as NCATS’ CTSA Program Hubs and NSF Seed Programs, through strategic networking with academic researchers, collaboration with incubators and startup accelerators and working with VC firms to help de-risk companies that are too early stage for them.