GlaxoSmithKline (GSK) of London has teamed up with San Diego–based Avalon Ventures to establish up to ten early-stage life sciences companies. One of Avalon's funds will provide funding of up to $30 million in exchange for equity stakes in the companies, whereas GSK's commitment of up to $465 million in seed funding, R&D support and milestones gives the pharma the option to acquire each company after a clinical candidate is developed. Avalon, which plans to start two companies this year and one per quarter thereafter, is responsible for identifying the new technologies and fostering the startups in its incubator in San Diego. Avalon managing director Jay Lichter admits that the built-in deal with GSK isn't for every entrepreneur, but he says many people are “ecstatic” about a quick payout in three to four years after a compound is ready for the clinic. The program is modeled on GSK's Discovery Partnerships with academia, which seeks to find and fund early-stage opportunities at academic institutions, while facilitating the entrepreneurial nature of US investigators who prefer to start companies rather than accepting funding directly from GSK. “Hopefully we set a trend in the industry—instead of people trying to kill each other fighting over table scraps, we find ways to be more collaborative and share the spoils,” Lichter says.