SOURCE: City of San Jose, California

June 17, 2008 14:11 ET

San Jose Bioscience Sector Experiences Tremendous Growth, Tops Nation in Venture Capital Raised

Milestones Attributed to Confluence of Science, Capital, Research, Talent and Lifestyle and Local Government Investment

SAN JOSE, CA--(Marketwire - June 17, 2008) - With more than $19 million invested in business incubator programs, the San Jose Redevelopment Agency and the City of San Jose are getting a return on their strategic investments.

According to a preliminary report, the bioscience sector in San Jose experienced a year-to-year growth rate of approximately 28 percent from 2002 to 2008 -- a rate that outpaces the Bay Area and the U.S. by a healthy margin.

"As a crossroad for ideas, talent and business, San Jose is delighted to attract and grow companies working in biosciences," said Mayor Chuck Reed. "With the Redevelopment Agency funding over the past decade, we have created the largest, most successful and comprehensive business incubator program in the nation -- which includes the San Jose BioCenter. We welcome a variety of bioscience companies to San Jose, from global powerhouses to small companies. For innovators who envision their start-ups becoming global leaders, San Jose offers access to talent, capital, and an entrepreneurial spirit that is unmatched around the globe."

A recent PriceWaterhouseCoopers' MoneyTree survey found that of 40 investments in the first quarter of 2008 in biosciences, $436.5 million was raised from the San Jose region. These are more investments and dollars raised than any other region in the nation. According to BayBio, a nonprofit trade association serving the life sciences industry in Northern California, Santa Clara County has the largest concentration of bioscience companies of all counties in the Bay Area. Further, according to the Milken Institute, $5.9 billion or 50 percent of the life sciences gross product of the entire metropolitan Bay Area, $12 billion, is generated here.

"We are proud to see that our business incubators, including the San Jose BioCenter and the Environmental Business Cluster, which was recently selected as the top incubator in the nation, have flourished," said Harry Mavrogenes, Executive Director, San Jose Redevelopment Agency. "Their success shows that our Agency is providing the right supportive environment for industries critical to the long-term prosperity of San Jose and Silicon Valley."

A strong driver of this growth has been the San Jose BioCenter, the cornerstone for a life science cluster located in San Jose's Edenvale Technology Park. The San Jose BioCenter opened in 2004 and currently has 22 tenant companies and 10 affiliate companies, and has created more than 150 jobs. These companies have raised more than $700 million in growth capital, a type of funding that will help a company accelerate its growth.

"We have a world-class facility providing wet labs, capital equipment and laboratory services which normally are only available to large companies. In addition, we provide business expertise to first-time scientist-entrepreneurs as they turn their innovations into commercial products," said Melinda Richter, executive director, San Jose BioCenter. "Our goal is to ensure our companies reach their goal of getting their research to market."

To further promote San Jose's bioscience unique strengths and programs, the City of San Jose Office of Economic Development, the San Jose Redevelopment Agency and the San Jose BioCenter will participate in the 2008 BIO International Convention in San Diego, California occurring all this week.

About the San Jose BioCenter

The San Jose BioCenter is a life sciences and emerging technologies incubator providing state-of-the art laboratory facilities, specialized research equipment, and best-in-class business support services. The BioCenter's mission is to provide entrepreneurs with that "Big Company Advantage" through facilities, equipment, resources, contacts and expertise they need to commercialize their technology. Established in 2004 by the Redevelopment Agency of the City of San Jose and operated by the San Jose State University Research Foundation in partnership with Prescience International, the San Jose BioCenter provides a comprehensive suite of laboratory and business services for emerging biosciences companies. For more information, visit www.sjbiocenter.com.

About the San Jose Redevelopment Agency

The Agency is dedicated to expanding quality jobs and building infrastructure to strengthen communities in San Jose. Governed by the Redevelopment Agency Board, the Agency facilitates and oversees comprehensive programs for development to revitalize and strengthen quality of life and competitiveness for San Jose's downtown, neighborhoods, and industrial areas. For more information on the San Jose Redevelopment Agency, contact us at (408) 535-8500 or visit our website at www.sjredevelopment.org.

About the City of San Jose's Office of Economic Development

The City of San Jose's Office of Economic Development (OED), part of the City of San Jose's Office of the City Manager, is committed to a vital, competitive San Jose economy that increases prosperity for people and companies and enhances City revenues. The Office guides the City's economic strategy, provides assistance for business success, helps connect employers with trained workers, and provides art and cultural resources to our community. For more information, please visit, www.sjeconomy.com.

About the City of San Jose

From its founding in 1777 as California's first city, San Jose has been a leader, driven by its spirit of innovation. Today, San Jose stands as the largest city in Northern California and the Capital of Silicon Valley -- the world's leading center of innovation. The city, the 10th largest in the U.S., is committed to be a top-ranked place to do business, work, live, play and learn. For more information, visit, www.sanjoseca.gov.

Contact Information

  • Contact:
    Helen de Runa
    (408) 795-1807
    San Jose Redevelopment Agency
    Email Contact

    Steven Brewster
    (415) 577-8851 mobile
    Email Contact
    San Jose Office of Economic Development