LSN Research Puts Boots on the Ground in Asia

6 Nov

By Michael Quigley, Director of Research, LSN

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At the beginning of October, LSN established a presence in the Asia-Pacific region so we could increase the number of mandates from investors who are unreachable during our normal business hours. Since that initiative began, we have interviewed more than 25 deal-sourcing executives interested in the life science space. These investors are based in several countries, including Australia, China, India, Japan, Korea, New Zealand, and Singapore. A significant reason for this success could be that the investors in these countries tend to be much more responsive to cold calling, which is less common in the region, and emailing. However, when analyzing the mandates from these investors, it appears that their desire for quality deal flow from U.S. and European companies is also motivating them to share their investment criteria with us.

Of the investors we have spoken with in the Asia-Pacific thus far, over 50% are global in their investment mandate. This is a higher figure than we have seen throughout North America and Europe, where about 30% of investors we’ve contacted are open to investing globally. Asia-Pacific investors maintain broad investment horizons to focus on the best opportunities available. In other respects, Asia-Pacific investors have broadly similar interests to investors in other parts of the world, with a slight advantage in overall interest in devices over therapeutics, and opportunities with early clinical data showing the strongest level of interest. . Unlike U.S. and European investors, however, many of the investors in this region are looking for companies with technology that is being developed for their local marketplace or could be adapted to it—a strategy worth considering if you haven’t already.

The Asia-Pacific region represents a massive pool of capital that entrepreneurs in the highly competitive market for life science venture capital should not be ignoring. If your company is in therapeutics, diagnostics, or medtech-devices, and if it is looking for a lead investor or the last member of a syndicate, be aware that Asia-Pacific investors are looking for such opportunities. LSN looks forward to uncovering more mandates from this region and will keep you updated on our findings.

 

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