RESI’s Innovation Challenge Drove A Seed Round for This Medtech Startup – Interview with Yuan-Ren Cheng, COO of Heroic-Faith Medical Science

20 Feb

Yuan-Ren Cheng

An interview with Yuan-Ren Cheng, COO of Heroic-Faith Medical Science

– By Jessica Yang, Investor Research Analyst, LSN

Jessica Yang

International early-stage companies often seek cross-border investment opportunities and strategic partnerships. How do these companies start at the beginning? What can they do to meet global investors and expand beyond regionally available resources? LSN invites 10 different types of investors from across the globe to meet with early stage companies at the RESI conferences, allowing companies to take advantage of the chance to meet many investors who are a fit for them in one day. I recently spoke to Yuan-Ren Cheng, COO of Heroic-Faith Medical Science, who won second place in the RESI San Francisco 2019 Innovation Challenge and successfully raised their seed round. Heroic-Faith Medical Science is a Taiwan-based medical device company developing AI-powered respiratory monitor for the critical care medicine.

Jessica Yang (JY): Congratulations on raising your seed round! What is the recent progress of your company?

Yuan-Ren Cheng (YRC): Thank you! We raised our seed financing round of $2.96 million, and we are looking to raise our Series A round for $7 million this year. Our exciting story was that, before we attended RESI SF last year, we had secured only $900K for our seed round, and after RESI SF, we raised an extra of $2.06 M to make it $2.96 M in capital. We grew from 7-8 team members to 21 employees now. We also received our key patent in the US recently, and we expect our device to receive US FDA clearance this year.

JY: That’s amazing! How do you think RESI helped you?

YRC: I think applying for Innovation Challenge was an important decision for us. We got selected as a finalist at our first RESI and won second place. This helped us gain a lot of exposure via RESI’s newsletter announcement and promotion for the top 3 Innovation Challenge winners, and RESI’s media partners also promoted our company and technology. I think this make our respiratory monitor became more famous.

Besides some investors from Taiwan that we’d seen before, most investors are new to us. We got 11 confirmed meetings at our first RESI, including big firms like Siemens. Interestingly, though the VP of Business Development from Siemens told us we weren’t a fit for their investment focus, she still sees our product promising and further introduced her connections in the patient monitor area. This is the power of RESI! You get to meet right people in similar industries at RESI, and if you are well-prepared, you could get even more opportunities from these people. That’s why we always recommend other startups that we know to apply for Innovation Challenge and proactively attend RESI.

JY: What was your strategy of sending out meeting requests in the RESI partnering platform?

YRC: We sent 100+ meeting requests through the partnering platform. We especially increased our efforts in the week before RESI. We noticed that many investors start to lock down their schedules in the week prior to the conference, and that’s why we sent follow-up messages in the partnering system to grab their attention. Also, we regularly researched the partnering system for newly added investors. We searched and sorted hundreds of investors in the partnering system, then we prepared three kinds of executive summaries targeting different categories of investors that fit us. For example, we had executive summaries specifically for Medtech investors, Healthcare IT investors, and investors who are interested in pulmonary and cardiovascular sectors.

JY: How do you think Innovation Challenge is different from other startup competitions? What is the key advantage of Innovation Challenge?

YRC: Overall, I think RESI really organizes the Innovation Challenge very well! The RESI team provided instructive information to let everyone know the purpose of this competition is for startups to network with investors at their poster. It’s very straightforward and condensed, and the Innovation Challenge allows us to have interactions with many RESI attendees. We got tons of business cards and recognized new business opportunities because of the Innovation Challenge. This is crucial to us because we know whom to contact and with whom to follow up after the conference. After all, you need a list to send your emails with company updates.

Speaking of this, I will also recommend that two people from the same company attend RESI together, to allow one to focus on partnering meetings and the other to stay at the Innovation Challenge poster. I think this is the most productive way to attend RESI.

JY: In your seed round you also raised money from non-Taiwan investors, what is your suggestions to international companies who are currently fundraising?

YRC: I think one point is that international startups have to step out and attend global conferences like RESI. Looking for cross-border partnership isn’t an easy task. We know that some investors with geographical restrictions of their investments could be the barrier. But if you have strong arguments to convince other global investors with your actual execution and performance, I think there are always chances to get funding. For example, you really need to understand the unmet medical needs, digitize your company’s progress, and even find out the advantages from where you’re based. This is also why RESI is such a great platform that you can keep attending the conferences and following up with potential opportunities. Otherwise, you won’t know where to start and find targets that aren’t based in your region. You can also learn what other early-stage companies are developing in RESI and analyze your competitiveness.

JY: Thank you so much for sharing your story!

Established in June 2018, Heroic-Faith Medical Science Corp., LTD. is focused on the development of medical devices for the critical care medicine. The total annual spending on ICU care in North America in 2018 reaches $108 billion USD, being second only to cancer care which totals $158 billion USD, making it a key market that is marked by costly spending, as well as one that is open to new ideas. We hope to combine Taiwan’s advanced medical expertise with its cutting-edge electronics capabilities to develop break-through products, so that we can realize the ideal of our CEO, “Saving lives through innovation”, in the global market.

 

RESI Partnering Opens Soon – Look Who You Could Be Meeting In Paris

20 Feb

By Lucy Parkinson, VP of Investor Research, LSN

On Monday, Partnering for RESI Paris will open.  Registered startups will be able to message and book meetings with vetted, active, early-stage investors and strategic partners who are focused on investing in biotech, medtech, diagnostics and digital health.  RESI’s unique investor profiling process and search ontology help entrepreneurs make the right connections and get the most out of their 16 available meeting slots at RESI.  Look below to see who’s already registered – we are expecting over 200 investors in total.  Want to get in on the first round of RESI Partnering?  Register now!

Confirmed RESI Europe Investors

As of Feb. 20, 2020

 

LSN’s Philosophy: 海纳百川

20 Feb

By Dennis Ford, Founder & CEO, Life Science Nation; Creator of RESI Conference Series

Yishaonan Chai, LSN’s Finance Manager, has a dad who teaches calligraphy at a University in China.  LSN received a scroll which we framed of a poem that reflects the basic nature  of LSN. Although LSN is small we are mighty as we have reach around the world.  We are currently getting ready for our  28th RESI conference in Paris on March 23, 2020.  The calligraphy featured below is a poem:

纳百川,有容乃大;

壁立千仞,无欲则刚”

—–林则徐

Hundreds of rivers run into the sea, its greatness contains everything;

Thousands of cliffs stand sheer, it’s indestructible with no greed.

—–Lin Zexu

(Lin Zexu was the Governor-General under Emperor of the Qing dynasty best known for his role in the First Opium War of 1839–1842. He destroyed 1,000 long tons of allegedly illegal opium to save people from addiction).

It advises people should be broad-minded to accept diversities and differences, connecting with them all; And people be dedicated to what you are doing, not being distracted by other thoughts, so that your work will be undefeatable.

I would say that is a good metaphor for LSN and what we are fighting for.

Hot Investor Mandate: China Investment Firm with Big Pharma Connections Invests in Global Life Science Companies from Angel to Series B Rounds

20 Feb

An investment firm headquartered in China manages three venture capital funds in RMB with a total of 1,400 MM RMB (~200MM USD); the firm is still raising a fund in U.S. dollars of 50MM~100MM USD, with the confirmed limited partners from well-known Chinese big pharma.

The firm has 24 portfolio companies, and is open to investing globally in the angel to series B round, with a focus on series A round. For therapeutics, the firm is interested in pre-clinical to phase III, mainly the pre-clinical stage. For each fund, the firm selects 10-15 companies to invest, and each investment ranges from 10MM RMB (1,420,000 USD) to 40MM RMB (5,700,000 USD); the rest of the fund will be used to invest the follow-on rounds of those selected companies to help them grow.

The firm has a general interest in the early-stage life science technology assets, including therapeutics, diagnostics, medical devices, and digital health, especially MRA, gene diagnostics, AI in healthcare, cell/gene therapy. The firm prefers projects in novel developing areas, but has less interest in technologies that are already in the field of very fierce competition, with big players already in.

The firm has no specific requirements for the company or management team.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com.

Hot Investor Mandate: Life Science Venture Arm of Global VC/PE Group Invests in All Life Science Sectors With Strong Interest in IND-Ready Therapeutics

20 Feb

A group of globally acting venture capital and private equity firms with an operating track record of over 30 years manages multiple funds globally. The group’s Life Science Venture arm is looking to provide seed, venture and growth capital to companies in the life science space. The firm’s investment size is highly variable depending on the stage and financial needs of each company and the firm has no target number of investments it plans to make over the next 6-9 months. The firm is willing to consider investment located globally.

The firm is a dedicated provider of venture capital to the international pharmaceutical, medical technology and healthcare diagnostics industries, hence looking to invest in companies in sectors of Medical devices, Diagnostic Tools and Platforms, and Specialty Pharmaceuticals that are later stage with strong in human data (Phase IIb and III or on the market) and have very little regulatory risk. The firm’s most recent Life Science Venture Capital Fund is a venture capital fund registered in North America, which focuses on a new investment approach to developing pharmaceutical assets in a capital efficient fashion, to a human proof-of-concept in single asset companies  that are anywhere from 12-18 months to IND to proof of concept (Phase IIa). The fund is currently most interested in small molecule therapeutics or IND-ready biologics for indications of metabolic disease, diseases of the blood, inflammation, and oncology. The firm is also willing to invest in highly differentiated biological compounds if compelling opportunities arise. The firm is also less inclined to invest into orphan indications.

The firm’s requirements for management teams vary on a case by case basis and the firm is open to discussion in this area.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com.

Hot Investor Mandate: Large USA-Based VC Firm Seeks Investment Opportunities in Oncology & Orphan Disease Therapeutics, Medical Devices, Digital Health, and Healthcare Services

20 Feb

A global venture capital firm based in USA with additional offices throughout USA and Asia is investing from its newest fund (vintage 2017).  The firm invests broadly in the healthcare and technology sectors, in both venture and growth-stage financing rounds. Due to the firm’s large fund size, the firm generally only invests in rounds that raise $10 million or more. The firm makes investments globally.

Within healthcare, the firm focuses on biopharma, and also invests in medical devices, healthcare IT and healthcare service providers. The firm is generally not seeking opportunities in diagnostics.  In biopharma, The firm prefers to invest in companies that have obtained data from human clinical trials; however, the firm also invests in breakthrough therapeutic technologies at the preclinical stage.  In medical devices, the firm only invests in growth-stage companies with an approved product and initial revenues; the firm prefers to invest in breakthrough device technologies and avoids commodity markets.  The firm has a broad portfolio and is open to any indication area, but has a particular focus in oncology and orphan diseases, and typically does not invest in infectious diseases.

Within the service provision and IT sectors, the firm is focused on opportunities that provide cost savings to the healthcare system; in this sector, the firm’s expertise is primarily in companies that target healthcare providers as customers, but the firm is also open to considering other areas of the services/IT space.

The firm has no fixed requirements for companies or management teams.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com.

Hot Investor Mandate: USA & Asia-Based Firm Seeks Early-Stage Investment Opportunities in Therapeutics, Molecular Diagnostics, Digital Health

20 Feb

An early stage investment firm with offices in USA and Asia focuses on facilitating the development and commercialization of high-potential, high-impact life science innovations arising from the U.S., Canada, South Korea, China and other markets that represent a significant source of opportunities for outsized value creation. The firm makes initial seed investments of US$100K – 1M and can bring in strategic capital from Asia to facilitate global development and market entry. The firm expects to make 2-3 new investments in the coming year.

Within life sciences, the firm is mostly interested in therapeutics, molecular diagnostics and digital health. The firm takes an opportunistic approach when it comes to disease areas and targets early stage innovation on the cusp of preclinical proof-of-concept or validation.

The firm is looking for capable teams developing innovative technologies. The firm works actively with entrepreneurs to devise and implement development and commercialization strategies, help assemble management personnel, and secure additional capital. For more mature opportunities, the firm will add value by using its fundraising, monetization, business development and licensing expertise to help secure investments and partnerships that will fund and expedite eventual commercialization.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com.

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