Archive | October, 2016

It’s A Numbers Game: Why Some Folks Book Lots of Partnering Meetings and Others Don’t @ Investor Conferences

27 Oct

By Dennis Ford, Founder & CEO, LSN

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As the creator of the RESI conference series I am constantly getting and gathering both solicited and unsolicited feedback on how well the RESI Partnering apparatus is working. At RESI Boston we had 1400 meetings between investors and fundraising executives in one day. Make no mistake about it, people get funded through using RESI as a vehicle to get in front of the right investors that are a fit for their development stage and product or service offering.

I hear people tell me how great RESI is and how they met a bevy of investors and wound up getting funded. I also hear from some frustrated scientist entrepreneurs who catch up with me and complain they can’t get enough meetings or they wanted more. I usually reply “Send me a copy of the email you sent out – and tell me how many times you tried to connect with the investors you wanted to meet with.” When you have entered the fundraising arena you have officially entered the sales and marketing world. That means your personal view of what works can collide and not cross over into your new reality of sales and marketing.

Partnering is the backbone of RESI and of many other investment conferences. That means that in order to get the most out of attending these events, you need to figure out how best to get meetings with the investors who are a fit for your business. Here is the first fact of the sales and marketing universe: Fundraising is a numbers game. To prove this, we took a look at all our RESI Partnering data to find out how many requests it takes to get a meeting.

Here’s what we found: If your meeting requests are in the single-digits, odds are you will only get in front of one or two investors, if any. On the other end of the spectrum, companies who were able to connect with investors can have up to 16 meetings or more in a single day. What’s the trick to getting a lot of meetings? Companies that got 14, 15 or 16 meetings at RESI all sent out 40-60 invites. It’s a numbers game. Just take a look at the chart below.

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Many individuals fell in the middle, somewhere in the teens. There were indeed some premier companies who got a high hit rate with only a few requests, and of course a few less fortunate companies that did the work without seeing their desired yield. The positive relationship between request numbers and meetings, however, is clear. Just in case you were wondering, the median number of requests sent by fundraising entrepreneurs was 15, a number that might typically yield 3-6 meetings. There was one outlying individual who sent out a whopping 114 requests as well, and wasn’t counted in the final numbers. If that individual is reading this – kudos, I think you may have set a new RESI record…you get it!

Now, this is not to say sheer numbers are the end-all-be-all. The importance of branding, messaging, and especially your intro email/ partnering message cannot be understated. In my book the Life Science Executives Fundraising Manifesto click here for a free PDF ebook Fundraising Manifesto we have this table that we compiled from our sales and research departments totaling around 15 professionals who make 20-40 calls a day attempting to reach out to our target clients and investors. Here are the facts of how many phone attempts it takes to get hold of someone. Many other studies have found similar results. This is the harsh reality of the sales and marketing world.

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Getting investor meetings is hard, tedious work and a lot of the work can be for naught. The rules of sales and marketing dictate higher yields of meetings when you go after investors who are a good fit for your company, and if you exercise persistence until you get a yes or a no.

Antibodies: A Look at an Accelerating Landscape

27 Oct

By Lucy Parkinson, Director of Research, LSN

The LSN Licensing Deals data platform logs all pharma licensing deals provided that financial information regarding on the deal has been announced. Taking a quick look at 2016’s announced deals thus far, we found that while many new technologies are making waves through pharma – such as T-cell technologies and RNA therapies – antibodies are currently the most wanted technology in pharma.

As over a quarter of the licensing deals logged in 2016 involve antibodies, we decided to take a look into the LSN Company Platform to find out what antibodies are currently being used for. For this article, we look at a sample of development-stage antibody products, ranging from preclinical-Phase III. We found that an overwhelming number – over half – of development-stage antibody drugs are in the oncology space. Other top indications for antibodies include infectious disease, musculoskeletal diseases and immune diseases, but oncological use of antibodies dwarfs all these.

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Within cancer, many of the antibodies in development are targeting a specific type of the disease. Here’s a closer look at which areas of cancer are seeing the most antibody innovation at present:

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As is typical in drug development, we find that a plurality of the development-stage antibodies are still in the pre-clinical phase of development, with a drop-off occurring at each stage.

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While there’s a lot of excitement about new drug technologies such as gene and cell therapies, antibodies are still highly sought after by big pharma in 2016 and much innovation is taking place within the world of bispecific and monoclonal antibody development. The LSN Company Platform is keeping both LSN and our clients abreast of the latest new technologies out there, and how big pharma is driving demand.

RESI San Francisco 2017 Panel Announcement: Early Stage Therapeutics Investors

27 Oct

By Caitlin Kramer, Research Analyst, LSN

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The critical early years of drug development after lead compound selection see pre-clinical studies, IND-filing, and the design and implementation of clinical trials. While navigating the regulatory needs of the FDA may seem enough of a challenge, entrepreneurs must also consider how their drug addresses the needs of investors. Capital intensity, endpoint selection, timelines to inflection points – these are just a few topics beyond the scientific data that LSN researchers have discussed the importance of with investors.

Understanding what investors are looking for in the deal and business plan structure can help entrepreneurs immensely in their approach to funding. LSN is pleased to announce the Early Stage Therapeutics Investors panel for RESI SF 2017, where five therapeutics investors will share their perspective on evaluating deals and answer audience questions.

Joining moderator Doug Fisher, Partner, InterWest Partners:

Check out these investors’ bios, and if you haven’t registered yet, do so here or get in touch with us by reaching out to the RESI team at RESI@lifesciencenation.com.

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Hot Investor Mandate 1: Venture Firm Raises New Fund for Medical Devices, Diagnostics and Therapeutics

27 Oct

A Venture Capital firm based in Texas raised a new fund in 2016. The firm looks to make Series A equity investments ranging from $250,000 to $1.5 million in the initial round with up to $3 million reserved for follow on financing. Only on a case-by-case basis will the firm look to make seed investments. The firm focuses on companies in the United States and may also consider exceptional opportunities in Canada.

The firm is interested in investing in companies in the Medical Device, Diagnostics and Therapeutics spaces. The firm has a much stronger focus on devices with approximately 75% of the firm’s investments to date falling into those sectors. For Medical Devices the firm generally looks for companies that have either an early prototype or proof-of-concept data to support them. The firm is also currently interested in companies working with diagnostic devices and is not looking for companies in oncology. For therapeutics companies the firm generally makes investment in pre-clinical assets and will evaluate opportunities on a case-by-case basis.

The firm seeks privately held companies and maintains very positive and productive working relationships with its portfolio companies, providing as much assistance as needed. The firm is much more open to taking significant scientific and technical risk as opposed to sales and marketing challenges.

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: Seed Fund Invests Early in Digital Health

27 Oct

A digital healthcare-focused seed fund was founded in 2015 and is based in the US Midwest. The firm typically acts as the lead investor in a priced equity round. The firm’s team is made up of three partners and has collectively invested in more than a dozen digital health companies as individual investors. The fund currently focuses on opportunities in the Upper Midwest, with a target investment in the $500,000 range.

The firm seeks to fund companies working in the digital health space, including health data management systems, patient-physician interface, cloud computing, and software-enabled devices.

The firm looks for teams that have some healthcare experience in senior management. The firm prefers a strong founding team, possessing varied skills that include technical expertise, sales, operational and marketing experience in senior leadership. After investment, the firm actively advise portfolio companies in various ways, including helping with introductions to health system customers, building teams and advising on operations and management. As such the firm will usually hold a seat on the board along with the founders.

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: China PE Firm Invests in Medtech, Healthcare IT and Biotech R&D Worldwide

27 Oct

A private equity firm headquartered in China provides venture capital and growth capital to early-stage companies across various industries, including life sciences, Internet, software, and high technology sectors (i.e. drones). The firm is interested in all types of life science companies except drug development. The allocation size will vary, but the firm has the capability to allocate up to $40 million per company, depending on the opportunity. The investment is typically in form of equity, but convertible loan will be considered as well. The firm has an emphasis on technologies and products, and it is currently seeking new investment opportunities globally.

The firm is currently seeking to invest in medical device, diagnostics, biotech R&D services and healthcare IT sectors. The firm is very opportunistic in terms of subsectors and indications. Currently the firm will not invest in companies targeting drug development. The firm will consider companies at all stages of development, from pre-clinical stage all through to commercial stage; however, the firm prefers companies in the business proven stage, where the product is on the market and may already have customer feedback.

The firm primarily invests in early-stage private companies. The firm does not have specific requirements for companies’ management team or revenues. The firm will take a board seat post-investment.

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: Family Office Focuses on Healthcare Data Opportunities Across Diagnostics, Instruments and Healthcare IT

27 Oct

An evergreen fund backed by a family office is focused on seed to later-stage companies building infrastructure and value chains around big data, including but not limited to health and life science data. Initial investment sizes fall within a wide range. Additional capital for follow-on investments is available for portfolio companies. Along with capital, the firm also provides access to their Asian network for later-stage companies needing market expansion (once all other aspects of the company’s business have been resolved). There is not a requirement for a board seat along with investments.  The fund is focused on U.S. companies (with a focus on Silicon Valley), but will consider companies globally.

The firm invests in companies that are creating solutions to close the data feedback loop, including capturing data, analytics and instruments/robotics. The firm is interested in medical devices, diagnostics and healthcare IT products, with addressable markets of at least $1B. In the diagnostics field, m-health devices and genomics are of particular interest. The firm is open to all sub-sectors of health IT including consumer-facing hardware/software, data collection/management and data analytics. The firm will invest in medical devices and diagnostics that require FDA approval, with 510K regulatory pathway being the most common, although devices/services that require different regulatory pathways will also be considered. Companies developing hardware or robotics that automate scientific life science experiments are also of interest.

There are no formal requirements for management teams, but management teams with experience commercializing products are preferred.

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