Archive | August, 2017

Get Ready, RESI Partnering Opens Monday, August 21st – New Premier Partnering Plus Is On The Docket

17 Aug

By Natasha Eldridge, RESI Conference Manager, LSN

natasha-wp-new

On Monday August 21st, Partnering for RESI Boston will open and all the entrepreneurs and investors attending the event will be able to start filling out their dance cards for RESI’s one-on-one meetings.  While RESI Partnering has always been the heart of the event, RESI also offers dozens of educational panels and workshops and also an engaging venue for ad-hoc networking.

The new Premier Partnering Plus will feature deep profiles of investors and strategic players that can be used to ensure attending startups get in front of the most relevant, best-fit buy side players possible.  Below is a partial list of investors who are already signed up to take part.  These investors range from family offices to major pharma players, from local funds to international cross border investors. Entrepreneurs can meet an incredible diversity of global investors at RESI Boston and continue the dialogue 6 weeks later at RESI NYC November 15.

While all attendees can use RESI Partnering to send meeting requests to attending investors, Premier Partnering Plus registrants will have a new unique tool to vet investor fits through viewing full mandate data for each investor.  This additional service will inform entrepreneurs as to what kind of opportunities these investors are most focused on, and for the first time, will also provide entrepreneurs with access to direct contact info.  In a previous edition, we took a closer look at what Premier Partnering Plus adds to the RESI experience.  If you’re already registered and would like to talk about upgrading your registration, please contact us at resi@lifesciencenation.com.

CONFIRMED INVESTORS AND STRATEGIC PARTNERS

Pitch Deck Pitfalls – To Get Investor Meetings, Avoid These Common Errors

17 Aug

By Lucy Parkinson, Director of Research, LSN

The LSN team reviews a lot of pitch decks on behalf of our clients, and we also hear many investor responses to startup presentations. We therefore have a unique window into what catches an investor’s eye, and what makes them lose interest. In this article, we’ll take a look at some common mistakes we’ve seen recently.

 

Tell Your Story

It’s all too easy to fill a deck with information on your science and the market but not have any unifying message that brings this information together. A deck is much more likely to get you a meeting if it tells a cohesive story. What motivated you to start this company? What goal is your company working towards? How did your fellow founders get involved? The answers to these simple questions can build your deck’s story and convince an investor to take a meeting. Remember, investors allocate to people rather than to assets – they need to know what your vision is and why you believe in this company. If you do this right, the investor will begin to believe in your company too.

It’s Not A Science Presentation

We often see pitch decks that are laden with graphs, data and images from preclinical studies. Often, these decks are produced by career scientists who have much more experience in presenting at scientific conferences than in marketing a startup to investors.

It’s important to remember that the purpose of a deck is first and foremost to get an investor interested in meeting with you. Every slide should have some important information that you and the investor can then discuss in more depth if there’s an interest. So for example, your slide might briefly summarize the results of your study or state that you found a positive result, then in conversation with the investor you could share these results in more depth if the investor wanted to see them.

Remember that life science investors, even if they’re not scientific experts personally, have access to expert reviewers who will assess your scientific case in great detail if the investor is interested in your company. Neither the deck nor the meeting has to make that deep scientific case for your startup.

Don’t Forget To Talk Business

Some pitch decks devote a lot of space to demonstrating why the scientists believe that their product will successfully demonstrate safety and efficacy in humans, but reserve little space for talking about the business that the product will power. Be realistic about the investor’s motivation: return on capital. Investors will want to know that you’re looking at the competitive landscape for your product, how your product will compete with the current standard of care (or any late-stage assets that might become a new standard of care), and how many patients your product can reach.

Don’t Miss The Exit

Investors will also be focused on how/when your company might be able to exit. Show the investors some comparable companies that IPOed or were acquired recently. In our experience, early stage biotechs benefit from starting discussions with strategic partners as early as possible – how are you positioning the product to such partners to align with their pipeline needs?

Don’t Lose Focus

Early stage biotech companies are often formed around several assets, either related via an underlying platform or created by the same scientist or academic institution. Many new entrepreneurs therefore assume that investors will be interested in the breadth of their portfolio as an opportunity to get several “shots on goal”. However, our experience is that investors generally prefer to see a clear focus on 1 or at most 2 highly promising lead programs. It is useful to mention that you have other assets as well – many strong pitch decks include a ‘Pipeline’ slide that shows all the company’s assets and the stage of development that they’ve reached – but investors primarily value the company according to the development of a lead program.

If you’re interested in getting some feedback on your deck and your investor outreach campaign, we’d be happy to provide a free consultation – you can find more details here.

Need Seed Stage Device Capital? Meet the Medtech Angels at RESI Boston

17 Aug

By James Huang, Research Analyst, LSN

james-wp

With medical technology entrepreneurs facing a challenging capital landscape, angel capital remains a vital source of early stage funding in the sector.  According to studies by the Angel Resource Institute, of every angel dollar invested in the USA, nearly 20 cents goes into healthcare and life sciences.  In recognition of the importance of angel financing to early stage companies, RESI features two angel panels, and today we would like to announce our Medtech Angels panel for RESI Boston.  If you’re interested in how to pitch to an angel group, what makes a medtech opportunity suitable for angel investment, or how angels work with their portfolio companies to hit subsequent milestones and follow-on raises, this panel is for you.

LSN has brought together five highly experienced angels who have a focus on medical technology investment.  The participants are:

Hot Investor Mandate 1: Southeast Family Office Looks US-Wide for Medtech Deals

17 Aug

A family office based in the southeast USA focuses its investment interests in healthcare, real estate, energy, and IT. The firm makes equity investments ranging from early-stage to full on commercialization, but also provides debt and convertible loan financing. The firm generally looks for USA-based opportunities but may consider deals outside of the USA and has a track record of working with companies globally. The firm seeks to make approximately 6-10 investments per year.

In the life sciences, the firm has a strong interest in medical device and diagnostic companies. The firm considers healthcare IT opportunities to a lesser degree, and will not consider biopharma companies for the most part. The firm is open to devices of all FDA regulatory pathways including 510k and PMA. The firm is very opportunistic regarding the company’s stage of development and will consider products that are both on- and off-market.

The firm is looking for privately held companies backed by an experienced management team. Companies should have a strong exit strategy, including having a direct line of contact with strategic or financial buyers. The firm is open to both leading and co-investing in a financing round.

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: China Investor Founds US VC to Invest in Seed Stage Life Science Deals

17 Aug

A California-based venture capital firm was founded in 2014 by a parent company based in China. The firm’s strong connection with Chinese partners enables the firm to support companies with market entry in China. The firm prefers to participate in seed/pre-series A financing rounds with check sizes of no larger than $500K, and hopes to invest more capital in later rounds (i.e. Series A to B) as follow on investments to portfolio companies. The firm seeks investment opportunities globally.

The firm is opportunistic and will seek companies in all parts of the life sciences space: therapeutics, medical devices, diagnostics, healthcare IT, etc. The firm has not invested in therapeutic products so far but is actively seeking new opportunities in the biopharma space, focusing on pre-clinical to phase I assets. The firm focuses on early-stage deals and will consider pre-FDA device products. The firm is open to companies developing products in all indications.

The firm seeks to work with privately owned companies with experienced management teams with a track record of success. The firm likes to see companies with intentions of entering the China market as the firm has a network of resources to support this, but this is not a requirement. The firm generally acts as the co-investor in financing rounds.

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: Global Venture Firm Invests in Early Stage Digital Health Opportunities

17 Aug

A venture capital firm with offices worldwide closed a $500M fund in 2016. The firm invests mainly in early-stage technology companies (i.e. internet, SaaS, consumer-tech, etc.) with high disruptive potential and seeks to be the first institutional investor, but dedicates a small amount of capital (about 20% of the fund) to later-stage companies as well. Typically, first checks fall in the $2-5M range in Seed to Series A rounds, but the firm has made investments as small as $250K. Overall, the firm invests in over 20 companies per year across North America and Asia. In terms of healthtech specifically, the firm makes 1-2 USA-based and 1 China-based investments per year.

In the healthcare sector, the firm is mainly interested in healthcare IT opportunities and will not consider therapeutics or medical devices. The firm will stray away from anything that involves FDA regulatory approval. Previous investments of the firm have included tools to improve physician workflow, healthcare AI applications, and wearable health trackers for a consumer market. Companies do not need to be generating revenue prior to investment.

The firm invests in private companies with strong technology and can work with different kinds of management teams that are ideally devoted full-time to the company. The firm will almost always act as the lead investor and seek board representation, staying actively involved in their portfolio companies. The firm prefers to have a syndicate of co-investors invest alongside the firm, but this is not an absolute requirement.

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: Venture Firm Invests in Therapeutics, Diagnostics and Devices in North America and Europe

17 Aug

A venture capital firm based in Europe with an additional office in New York manages €176 million in total assets across two funds. The firm typically makes equity investment into early-stage life science companies. The typical investment size ranges from €0.5million-€8million ($0.7million-$10million). The current fund aims to make 10 to 15 investments. The firm generally invests in companies based in the US and Europe.

The firm is currently looking for new investment opportunities in the life science space. The firm focuses on Therapeutics, Diagnostics and Medical Devices sectors. The firm is very opportunistic in terms of subsectors and indications, and it is most interested in companies in pre-clinical and clinical stages. In the past, the firm was active in therapeutics companies targeting drug delivery and gene therapy. The firm was also active in device companies developing single use cardiovascular devices and implantable devices.

The firm primarily invests in private companies with experienced management teams, but it will also consider public companies, depending on the opportunity. The firm seeks to take a board seat in its portfolio companies.

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