Lokoya Capital LLC, a Minneapolis-based investment banking and venture capital company, is moving to Arizona--and it's ready to jump into the biotech-investment pool.

The company, which has signed a letter of intent with the Translational Genomics Research Institute, has previously been party to more than 40 transactions that have generated $7 billion in life-sciences capital, according to remarks by senior managing director Todd Nelson reported in the Arizona Republic.

Venture capital is seen as a key component of a successful biotech venture in the state. Lokoya has said that it aims to raise $300 million, anticipating its first round of venture-capital financing in 2005.

Lokoya already has an office at the TGen headquarters in downtown Phoenix, and is currently working on projects with TGen. Nelson told the Republic that they may form the first company within the next quarter and get institutional funding for it in a year.

"It is not exclusive, but it is a close working relationship," Richard Love, TGen's chief operating officer, told the Republic.

Lokoya and TGen each bring something different to the agreement. Lokoya brings its expertise in raising money, licensing discoveries, and developing businesses, whereas TGen offers its insight into potential investment opportunities. Lokoya could also invest in TGen spinoff companies, or the two could found companies together.

Love told the Republic that Lokoya could also bring companies to Arizona, particularly start-ups interested in working with TGen.

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For more information:

" Boost in state's biotech efforts," Arizona Republic, 07/15/2004