BioCrossroads Inc. announced Thursday morning that its newest seed fund has made its first two investments.

Indianapolis startups Esanex Inc. and Algaeon Inc. received $500,000 and $250,000, respectively, from Indiana Seed Fund II.

Esanex is developing a therapy that inhibits the ability of cancer cells to grow and survive. The investment will be used to complete a Phase 1 study in patients with tumors and to conduct multiple Phase 2 trials.

Esanex is part of the portfolio of Lilly Ventures, the venture capital firm spun out of Eli Lilly and Co. in 2009.

Algaeon developed patent-pending technology used to make micro-algae-based products used in human supplements and in animal and fish-feed stocks. The company will use the investment to expand operations and produce additional products.

Algaeon is located on the northwest side on West 82nd Street.

BioCrossroads, the Indianapolis-based life sciences development group, launched Indiana Seed Fund II in April after raising $8.25 million to help fledgling life sciences companies grow.

Its first seed fund raised $6 million that was invested in 11 companies.