A Venture Capital firm based in California held a first close of a new fund in late 2015 of $75M, and expects to be fully closed in 2016 at $150M. The fund’s investment strategy is somewhat flexible, but seeks to initially invest in series A rounds in the range of $2M-$3M then provide capital throughout the company’s life via additional investments. The firm may write smaller checks (in the range of $250K) to companies that are of very high interest to the fund, but are deemed as too early, to serve as a placeholder for subsequent financing rounds. In terms of capital structure, the firm prefers to participate in priced equity rounds, however convertible notes or other structures may be considered in certain cases. The firm will act as a lead or follow-on investor depending on the nature/terms of the deal and other investors participating in the round.
The firm is most interested in disruptive technologies that target extreme inefficiencies in the healthcare system, such as digital health solutions based on artificial intelligence or big data platforms, as well as cutting-edge technologies and applications in the field of synthetic biology, or other technologies taking elements of data science to improve molecular processes. The firm is not interested in traditional medical devices and diagnostics, but rather devices whose core IP lies within in the backend or software component of the technology.
The firm is open to companies globally, but prefers to invest in companies based on the West Coast. Typically, companies that aren’t located in the U.S. would need to have some operations based in the United States. A lot of emphasis is placed on the strength of the management team when making an investment decision, and the firm seeks to work with entrepreneurs who have a strong understanding of their market and sound logic behind why their vision and business model will be successful. Although successful, repeat entrepreneurs are highly valued, the firm will work with entrepreneurs of all experience levels. Board seats are not required along with an investment, but may be sought depending on the deal.
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