March Mandate Madness: 90 Investors Seeking Diagnostics, Medtech, and Therapeutics Globally

9 Apr

By Lucy Parkinson, Senior Research Manager, LSN

lucy 10*10In March, LSN Research spoke with the investment staff at 90 firms that directly invest in life science companies. As always, we reached out to a wide variety of investors; many were from the venture capital or private equity space, but we also gathered mandate information from investors of every type that LSN tracks. Figure 1 shows the range of investors we contacted in March.

figure 1

Figure 1 | Source: LSN Investor Platform, Data as of March 31, 2015

These 90 conversations represent a truly global dialogue. In addition to speaking to investors in the U.S., Canada, and throughout Europe, LSN Research also spoke to investors from as far away as Korea and New Zealand. (See Figure 2).

figure 2

Figure 2 | Source: LSN Investor Platform, Data as of March 31, 2015

As Figure 3 shows, we found that the largest sectors of focus for these investors were the diagnostics and medical technology sectors, with 65 investors interested in each of these fields. We also spoke to many investors looking for therapeutics opportunities, and also those with an interest in other life science opportunities, such as engineering and healthcare IT, biotechnology R&D services such as CROs, and other biotechnology fields, including industrial biotechnology and agricultural biotech.

figure 3

Figure 3 | Source: LSN Investor Platform, Data as of March 31, 2015

LSN’s focus is on early stage opportunities, so we have concentrated on cultivating relationships with investors that have demonstrated interest in the preclinical and early clinical phases of development. However, many investors take an interest in companies at a range of stages. A large number of the therapeutics investors we spoke to in March were also looking at later stage opportunities, as Figure 4 shows.

Figure 4

Figure 4 | Source: LSN Investor Platform, Data as of March 31, 2015

We see a more even distribution in the medical technology and diagnostics fields, perhaps due to the shorter timelines involved in bringing a product to market. A slight preponderance of the investors we spoke with in March are interested in medtech and diagnostics products undergoing clinical trials, as Figure 5 demonstrates.

Figure 5

Figure 5 | Source: LSN Investor Platform, Data as of March 31, 2015

Over a third of the investors we contacted are interested in accessing life science opportunities all over the world. The rest have particular areas of focus, from a single city or region to one or more entire continents. The majority of these non-global investors have an interest in opportunities in the U.S., but we also spoke to investors who focus on Europe, Canada, Asia, the Middle East, and Oceania (see Figure 6).

Figure 6

Figure 6 | Source: LSN Investor Platform, Data as of March 31, 2015

LSN Research finds that there is continuing investor enthusiasm for direct life science opportunities, and also a great deal of nuance in the specific details regarding what investors are looking for. These reports show general trends among life science investors, but every investor is different and has their own unique approach to the field, whether it’s focusing on a certain inflection point or a specific area of medicine. No one opportunity could spark the interest of all 90 of these investors; therefore, it’s important to thoroughly vet each life science investor and assess whether they are a fit for your company before pitching your opportunity.

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