Sandbox Industries
Sandbox Industries is a United States venture capital firm located in Chicago. The firm focuses on connecting established corporations, or incumbents, with disruptive startups, or innovators, across several lines of business: strategic corporate investment funds, new business accelerators, and innovation consulting.
History
Sandbox was founded in Chicago in 2003 by Bob Shapiro and Nick Rosa. At its outset, Sandbox ran a startup Foundry that employed entrepreneurs and tasked them with researching and testing the viability of a startup concept. These companies were provided with seed funding, mentorship, and office space in exchange for equity.[1] Portfolio companies include Lab42[2] and Marbles: The Brain Store.[3] The firm has since ceased the internal founding of its own startups to focus on connecting corporate partners with entrepreneurs outside its own walls.
Funds
Sandbox Industries manages five Funds. Two are traditional funds: Sandbox Venture Fund and Sandbox Advantage Fund; and three are Collaborative Investment Vehicles: Blue Cross Blue Shield Venture Partners I, L.P., Blue Cross Blue Shield Venture Partners II, L.P., and Cultivian Sandbox Food and Agriculture Fund II.
Sandbox Venture Fund
Sandbox Venture Fund (SVF) invested primarily in Sandbox Industries' Foundry companies.[4]
Sandbox Advantage Fund
Sandbox Advantage Fund (SAF) invests in consumer technology, food and agriculture, and healthcare-related startups.[5]
Collaborative Investment Vehicles
A Collaborative Investment Vehicle, or a CIV, is an investment model pioneered by Sandbox Industries; the first Fund to use this model was Blue Cross Blue Shield Venture Partners I, L.P. CIVs invest in new businesses that are of strategic relevance to the Fund's corporate investors. These investors then become potential customers or acquirers for those startups in which the fund invests. Sandbox Industries manages three CIVs: Blue Cross Blue Shield Venture Partners I, L.P.;[6] Blue Cross Blue Shield Venture Partners II, L.P.;[7] and Cultivian Sandbox Food and Agriculture Fund II.
Blue Cross Blue Shield Venture Partners Funds I and II
Sandbox has an exclusive partnership with BlueCross BlueShield Venture Partners to manage and invest BCBSVP Funds I and II.[8] This group sources healthcare-related startups which, if invested in or partnered with, could further BlueCross and BlueShield's own goals or provide it with insight into industry trends, and makes recommendations to the venture partners.[9]
Sandbox Industries is the Fund manager for BCBSVP Funds I and II, which are CIVs that invest in healthcare-related startups of strategic relevance to BlueCross BlueShield. BCBSVP has made investments in Bloom Health,[10] Nexidia,[11] and Patientco,[12] among others.[13]
Cultivian Sandbox Food and Agriculture Fund II
Cultivian Sandbox is a partnership between Cultivian Ventures and Sandbox Industries which invests in food and agriculture technology companies.[14] Fund II has made investments in Conservis,[15] Vestaron,[16] and EnEvolv,[17] among others.
New Business Accelerators
Sandbox Industries has founded two new business accelerators, Healthbox and Excelerate. Both programs aim to help teams grow their startups, advance their business models quickly, and get in front of potential investors.
Healthbox
Healthbox, founded in 2011 and a strategic partner of BCBSVP, began as a three-month startup accelerator program that provides seed capital, mentorship, office space, and advisors to healthcare-related companies.[18] In addition to the accelerator program, Healthbox has since evolved to include Healthbox Solutions, which expedites market entry for early-stage healthcare companies; the Healthbox Foundry, an evaluation and commercialization process designed to help organizations advance internal innovation; and Healthbox Collaborative Innovation Funds, which Healthbox develops alongside healthcare organizations to meet their individual needs.[19]
In November 2014, Healthbox announced a partnership with Intermountain Healthcare to work with its Intermountain Foundry, where hospital employees with entrepreneurial ideas can work to make them a reality.[20]
Excelerate
Excelerate, founded in 2010 and based in Chicago, was a three-month startup accelerator program for tech-enabled startups.[21] It has since become a part of the TechStars accelerator network as TechStars Chicago.[22] Excelerate was named one of Tech Cocktail's Top 15 USA Startup Accelerators in 2012.[23]
Innovation Consulting
In January 2014, Sandbox launched an innovation consulting initiative: Sandbox Innovation Partners. SIP sources startups globally to connect them with its corporate clients and helps establish investments, pilots, partnerships, etc.
References
- ^ Become an Entrepreneur--No Idea Required, Inc., April 2012
- ^ Who Will Social Media Users Vote For? (INFOGRAPHIC), Mashable, October 2012
- ^ Lost Your Marbles? Consider Them Found!, ChicagoNow, January 2012
- ^ doggyloot Raises Funding from Sandbox Ventures, FinSMEs, April 2011
- ^ CakeStyle Raises $1M To Bring Handpicked Women’s Fashion To Your Doorstep, TechCrunch, August 2012
- ^ BlueCross BlueShield Closes $116M Debut Fund, Dow Jones VentureWire, November 2008
- ^ BlueCross BlueShield Closes Second Health Venture Fund At $176M, Dow Jones VentureWire, June 2011
- ^ BlueCross BlueShield, BMW, Best Buy, And De Beers Venture Into New Investments, Fast Company, February 2012
- ^ Startup Fever Grips Chicago Companies, From Blues To Law Firms, Crain's Chicago Business, October 2012
- ^ Startup Bloom Health raised $5M, Minneapolis St. Paul Business Journal, January 2010
- ^ Nexidia Secures over $23 Million in New Equity Funding, BusinessWire, October 2010
- ^ Healthcare Expense Management Leader Patientco Receives $3.75M in funding led by BlueCross BlueShield Venture Partners and Sandbox Industries, PR Newswire, August 2012
- ^ BlueCross BlueShield Venture Partners on CrunchBase, CrunchBase, December 2012
- ^ Why Cultivian Ventures, Sandbox Industries invest in food production, Chicago Tribune, September 2014
- ^ Conservis Corporation Announces Initial Close on $10 Million Series A Financing, Businesswire, September 2014
- ^ Vestaron Corporation Closes on $10M Series C Preferred Stock Financing, Yahoo! Finance, August 2014
- ^ EnEvolv, A Genome Engineering Company, Completes Series A Financing PR Newswire, March 2014
- ^ Thinking Outside the Box About Healthcare, World Business Chicago, November 2011
- ^ Healthbox Raises $7M from Intermountain, HCSC, its first since founding MobiHealthNews, April 2014
- ^ Healthbox to help entrepreneurs inside and outside Intermountain get to “yes” MedCity News, November 2014
- ^ 150 Resources for Tech Startups, DailyTekk, April 2012
- ^ Excelerate Labs To Become TechStars Chicago, Technori, September 2012
- ^ Top 15 US Startup Accelerators Ranked; Y Combinator and TechStars on Top, Tech Cocktail, August 2012