Clay Blair III, of Olathe, is a KU alumnus, Johnson County real estate developer and former head of the Kansas Bioscience Authority.

A Johnson County real estate developer has made the largest donation so far to a new Kansas University fund created to support university startups.

KU alumnus Clay Blair III, of Olathe, gave $100,000 to the KU Venture Fund, which was developed by the university recently to provide initial capital to new ventures started by KU faculty, students and staff. Blair owns Clay Blair Services Corp. and served as the first chair of the Kansas Bioscience Authority.

Julie Goonewardene, president of KU Innovation and Collaboration, which partnered with KU Endowment Association to establish the KU Venture Fund, said money from the fund will help companies get to the stage where they can more easily raise capital on their own.

“One of the challenges we face is that so many of the companies we are starting at KU are really, really early and often don’t have revenue. It’s very difficult to get investment into the company because the risk profile is so high.”

While money from the fund is raised philanthropically, Goonwardene said the fund will invest strategically, with an eye for the commercial potential of the company. “We won’t just be making these decisions willy nilly,” she said.

Outsiders with backgrounds in business, technology and science and experience in investing and starting companies will make recommendations for investments. Meanwhile, KU faculty and others trying to start businesses can get experience with working with investors, Goonwardene said.

Investment returns will go back into the fund. The eventual goal is to raise $500,000 for the fund, bringing it, with university matching funds, to $1 million. With the university investing, it could cash in on future profits if a company takes off, Goonwardene said.