Hot Life Science Investor Mandate 3: CRO’s Corporate Venture Arm Leverages Services for Equity

23 Jan

The corporate venture capital arm of a global contract research organization (CRO) has the ability to allocate anywhere from $100,000 to $2 million of equity capital to companies. However, the arm only invests in opportunities where it can leverage its CRO services as a piece of the investment, and as such, looks to tailor its CRO services to the needs of its partners, helping them to reach key value-added milestones. The firm will consider opportunities worldwide, and plans to be involved with 6-10 companies over the next 6-9 months.

The corporate VC is willing to consider making investments into companies developing medical devices, diagnostics, and therapeutics that are able to utilize their parent company’s CRO services to advance their product into or through clinical trials. Currently, they are most interested in companies developing therapeutics and biologics with a lead asset anywhere from 6-9 months pre-IND, to Phase III of clinical trials. The arm is completely opportunistic in terms of subsector and indication, and is willing to consider companies targeting orphan indications.

The corporate VC often acts as a co-investor, and generally does not require a board seat. Despite not being active on the board, the firm is a long-term investor and looks to provide market, development, and regulatory insight and strategic advice into selected companies.

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