Archive | August, 2016

Partnership Building: First Step of a Successful Asia Strategy for Your Startup

25 Aug

By Shaoyu Chang, MD, MPH, Senior Research Manager & Asia Business Development Liaison, LSN

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The momentum of cross-border investment from Asian countries such as China, Japan, and Korea continues to grow. China has picked up steam in overseas M&A with $122.57 billion in deal value in just the first half of 2016, shattering its record and surpassing that of the US and Germany.

The LSN team regularly travels to major innovation hubs in North America, from Boston and San Francisco to Houston and Toronto. Everywhere we go, we are seeing a growing number of Asian investors and corporations in search of innovative healthcare products. The healthcare sector has become increasingly attractive for its long-term growth as well as solutions to the buyer’s domestic unmet medical needs.

The cross-border investment scene not only has seen quantitative changes, but qualitative ones. A decade ago, only a small number of state-owned entities or large corporations went outbound to acquire strategic resources. In recent years, the arena has been filled by publicly traded or private-owned companies . The changing landscape reflects a new mindset that views overseas activities as a part of regular business strategy.

As the diversity of buyers increases, so does the scope of their investment. Backed by highly trained workforce and ‘returnee’ scientists, Asian biopharma industry has demonstrated strong ambition in innovation. Instead of focusing on snatching mature businesses, Asian biopharma companies are now active in swapping assets with their US and West European counterparts. According to LSN Licensing Deals Platform, Asia accounts for 40 percent of all global cross-border biopharma licensing deals from January to August this year (see Figure 1).

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What does it all mean for early-stage entrepreneurs? For US- and Europe-based businesses, Asia may present as a potential funding source. However, effective collaboration would never happen if you do not have thorough understanding of how your product fits into a different patient population, healthcare environment, distribution channels, and regulatory system.

Though stories of cultural clash are sometimes heard, one cannot deny that a trustworthy and experienced Asia partner can be of great help with navigating the uncharted waters and avoiding unforeseeable pitfalls. To build any business relationship, physical interaction is a critical first step, which is especially true in the Asian business cultures. For entrepreneurs with an Asia strategy, they should strive to grab every chance to get in-person time with potential Asia partners.

RESI Boston conference is offering such an opportunity, where a group of highly reputable investors and corporations from China, Hong Kong, Taiwan, Japan, and Korea are attending. Entrepreneurs working on novel therapeutics, medical devices, diagnostics or other healthcare technology will be able to find investors in your sector and engage in dialogue with them. You can find speakers on RESI Asia panels through the following links:

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Digital Health: Two Panels Showcase the New Innovation Frontier at RESI X

25 Aug

By Lucy Parkinson, Director of Research, LSN

Boston is known for being the hub of the biotech world. But as software is eating the world, innovators are finding new avenues for digitization of healthcare. Some are tackling inefficiencies and bottlenecks in the healthcare delivery system; others are using big data algorithms to explore biological processes, make new discoveries, or find new signals in population health data.

RESI Boston will feature two panels that explore this collision between software and health. The Healthcare IT session will look at the current landscape in digital health investment. What kind of solutions are investors excited about, and how do they assess startups in this increasingly crowded sector?

Moderated by Michael A. Greeley, General Partner, Flare Capital Partners, the panelists are:

In Big Data in Healthcare, RESI will take a laser focused look at the new possibilities that data science is creating in biotech and health innovation. Five investors will explore what they’re looking for in a big data opportunity. The participants will be:

If you’d like to catch these panels in person, you can register for RESI now.

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LSN Summer Reading Series Chapter 11: “Email Campaigns”

25 Aug

By Nono Hu, Director of Marketing, LSN

This week, the LSN Summer Reading Series covers one of the most powerful tools in your fundraising arsenal: the outreach email.

From basics like mail merging and segmenting your list to sophisticated tools such as delivery scheduling and analytical tracking, this chapter covers how to use email to introduce your company to an audience of potential investors. This chapter also explains the importance of targeting the right contacts when you send an email and of including clickable links in order to uncover which recipients are engaging with your message.

Click here to download/print the chapter PDF

We hope you find this chapter useful in moving your fundraising campaign for us. Next week, join us to read “Chapter 12: Anatomy of an Allocation Process.”

Enjoyed the preview? Buy now from Amazon.com or Barnes & Noble

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Hot Investor Mandate 1: Australia-Based Firm Invests in Clinical-Stage Drugs & Marketed Devices

25 Aug

A venture capital firm based in Sydney, Australia makes early-late stage investments into several industries with a focus on transformative technologies, including: Life Sciences, IT, education, mobile, media, cloud computing and data, security and privacy, machine learning, software, sensors and robotics, and food security. The firm has raised 2 funds to date and currently has A$ 200M in funds under management, and is investing with a primary focus on companies raising Series B rounds onwards, though will consider companies raising Series A. Depending on the stage, the firm can invest from A$ 4M up to A$ 20M per company. Most of the firm’s investments are in Australian-based companies but 20% of investments are for off-shore investments outside of Australia, as the firm has looked at technology in the USA, Israel, and Singapore. The firm is actively seeking 3-4 new investment opportunities within the next year.

In the Life Sciences, the firm seeks to invest in biotech, specialty pharma, medical technology/device, diagnostics, and healthcare IT. The firm looks at post-Ph I clinical-stage products that have a strong proof-of-concept at a minimum, and typically invests in products with well-progressed and well-defined regulatory and reimbursement pathways. If a medical device, the product should be approaching profitability with capital required to fuel growth and global expansion. The firm is only interested in indications with a significant global market, and will not look at biosimilars, generics, and indications and technology that require large rounds in their Ph III-study.

In Healthcare IT, the firm is interested in eHealth apps, self-management and CRM software technology. The firm is also interested in food and environmental biotech opportunities.

The firm requires board representation post-investments. The firm will actively help with hiring a full management team, senior management team, and board, if necessary.

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

Hot Investor Mandate 2: Pharma Seeks Therapeutics in Cardiology, Metabolism, Oncology, and CNS

25 Aug

A Europe-based pharma firm is interested in partnerships with with early-stage biotech companies, usually structured in the form of rights, co-marketing, or R&D collaborations. The firm is open to partnering with companies globally.

The firm focuses on 5 disease areas; cardiovascular disease (heart failure, ischemia, atrial fibrillation), metabolism (type 2 diabetes and complications of diabetes), oncology (apoptosis, immunotherapy, proliferation & differentiation pathways, protein degradation, and epigenetics), CNS (cognitive impairment, neurodegenerative diseases such as Alzheimer’s and Parkinson’s disease, multiple sclerosis, and ALS), and rheumatology (osteoarthritis, inflammatory and immune diseases, and muscle pathologies). Within these disease areas, the firm focuses on unmet medical needs and will consider partnering on any molecule type (small molecule, biologic or cell therapy), but is only interested in novel therapeutic products; the firm does not invest in drug delivery or biosimilars. The firm will consider opportunities from target stage to late clinical trials.

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

Hot Investor Mandate 3: New Fund Seeks Disruptive Innovations in Synthetic Biology, AI and Molecular Data Science

25 Aug

A Venture Capital firm based in California has raised its first fund in 2016.  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.

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

Hot Investor Mandate 4: Tech Fund Looking for Healthcare IT Deals

25 Aug

An early-stage venture capital firm founded in 2008 and based in San Francisco, CA has recently closed a $125M fund, and will invest in series A rounds with initial investments in the range of $2M-$5M, with access to additional capital for follow-on investments if needed. The firm prefers priced equity rounds, and acts nearly exclusively as a lead investor.

The firm is traditionally a tech-oriented VC, however the firm is open to evaluating companies in the health IT space, whether they are developing consumer facing products or enterprise solutions for health systems with the caveat being that the core business can scale with capital efficiency. The firm is looking for capital efficient technology solutions, with the number one disqualifier of potential portfolio companies being capital intensity.

The firm is most interested in U.S. companies, and will consider companies located globally only if they are based near a trusted colleague/investor that can interact with the company. While the firm values experienced entrepreneurs with an exit on their résumé, the firm is open to working with entrepreneurs of all experience levels.

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