Category: Hot Mandates

Hot Life Science Investor Mandate 2: Foundation Allocates to Companies Working to Cure Retinal Diseases

~ Next Phase Admin ~ Leave a comment

A foundation based in the Eastern US typically makes allocations to companies in the range of $1-$8 million, and is capable of providing $10-$15 million over the investments lifetime. The firm primarily funds companies located in the United States but will consider opportunities located globally as well. The firm provides equity capital, and does look for a return, though percentages taken are generally less than more financially-motivated investors, and all profits are reinvested back into the fund. Ideally, the firm would like to allocate to 3-4 companies over the next 6-9 months.

The foundation’s mission is to fund research that will provide preventions, treatments and cures for the entire spectrum of retinal degenerative diseases. Currently, they are looking to fund companies in the therapeutics sector, and will consider companies working in areas of Small Molecules, Biologics, Gene Therapy, and Regenerative Medicine that target those indications. The firm primarily funds companies that are just preparing to enter the IND enabling stage, but they will consider companies in all stages of clinical trials.

The foundation often invests into companies that do not have complete management teams, and looks to utilize the foundations expertise and network in the retinal disease space to help companies grow. The foundation has many experts in the field that will help aid companies as well as a registry of potential patients for clinical trials.

Hot Life Science Investor Mandate 3: VC Looks to Companies in Pre-Clinical Trials

~ Next Phase Admin ~ Leave a comment

A venture capital firm based in the Central US manages 2 funds for a combined total of more than $250 million in assets under management. The firm generally invests between $2-$6 million of equity capital per round, and up to $10 million over the life of the investment. The firm plans to invest in 2-5 companies over the next 6-9 months, and will consider firms located throughout the United States. The VC looks to syndicate with other venture firms, and often acts as the lead investor.

Currently, this organization is looking for companies developing Medical Devices, Therapeutics, Diagnostics and Healthcare IT products. For medical devices and therapeutics, the firm is open to the full spectrum of subsector and indication, and will consider companies developing orphan indications. They are interested in seed and venture stage companies, generally looking to invest in companies with a lead asset in pre-clinical trials. Only in certain cases of reformulation and repurposing would the firm consider investment into a company with a product in clinical trials. They are also willing to consider companies targeting orphan indications. In the Healthcare IT space, the firm has stated interest in areas of clinical sequencing and diagnostic platforms but will also consider other companies that fall into the Healthcare IT space as well with the exception of tradition EMR companies.

As such an early stage investor, they invest almost exclusively in pre-revenue companies. The firm also looks for experienced management teams and generally takes a seat on the company’s board.

Hot Life Science Investor Mandate 1: Corporate Venture Capital Arm Seeks Therapeutics Companies

~ Next Phase Admin ~ Leave a comment

The corporate venture capital fund of a larger firm based in the Western US is currently investing from its second fund of $100M. The arm invests in early-stage biotechnology companies focusing on discovering and developing human therapeutics primarily in the areas of the current therapeutic interest to its parent company. The firm typically invests (equity) $2M to $3M per round with $10M reserved for follow-on investments. The firm seeks companies that are based in the US and Europe. They also seek to make 2 or 3 allocations in the next 6-9 months.

The venture arm seeks early-stage companies developing human therapeutics. The firm is seeking companies with products in pre-clinical to phase IIa. The firm’s therapeutic areas of focus are: Cardiovascular (Acute Coronary Syndromes, Dyslipidemia, Heart Failure); Hematology (Anemia, Neutropenia, Stem Cell Mobilization); Inflammation (Asthma, Bowel Disease, Multiple Sclerosis, Osteoarthritis, Psoriasis, Rheumatoid arthritis, Systemic Lupus Erythematosus); Metabolic Disorders (Diabetes, Osteoporosis); Nephrology (Hyperparathyroidism, Renal Failure); Neuroscience (Alzheimer’s Disease, Cognition, Pain-Neuropathic & Inflammatory, Parkinson’s Disease, Schizophrenia); and Oncology. The firm is also interested in drug delivery therapeutics.

The firm seeks a company with a strong and experienced management team or technical experts in the relevant technology.

Hot Life Science Investor Mandate 2: CMO / Corporate VC Doubles as Seed, Venture Investor

~ Next Phase Admin ~ Leave a comment

A medical device incubator and contract manufacturing organization (CMO) that also provides seed and venture funding to medical device companies is headquartered in the Western US. Typically, they provide up to $7 million in equity capital into companies. They are willing to consider companies globally. The firm currently has no set number of planned allocations, but they are willing to invest in as many companies as their facilities can handle.

The incubator is looking for companies that are in the medical device space. Within the medical device space, the firm is currently interested in companies developing disposable devices, reusable instruments, and surgical devices, among other relatively low-tech devices. The firm also is very interested in indications of cardiovascular, perivascular, orthopedics and diseases of the nervous system. The firm is willing to work with companies that are still developing their prototype to those that are into clinical trials. The firm prefers that a company’s product be eligible for the 510K regulatory pathway – as well as being eligible for reimbursement.

This organization is willing to work with companies that have incomplete management teams to those that have established corporate leadership. The firm almost exclusively deals with companies that are pre-revenue. The firm is willing to participate in the formation of a new company to the takeover of a more established one, and looks to leverage the firm’s capabilities in areas of R&D, Marketing, Sales and Prototyping in order to expedite the process of getting the companies device on the market.

Hot Life Science Investor Mandate 3: Institutional Alternative Investor Seeks Companies At, Near Commercialization

~ Next Phase Admin ~ Leave a comment

An institutional alternative investment firm based in the Eastern US manages over $1 billion in total assets, and is currently making investments out of its second private equity fund. The firm looks to invest between $2 and $6 million into companies in exchange for an equity position preferably in the range of 10%-30%. The firm prefers to lead investments, but will co-invest with other accredited and established investment firms. The firm typically allocates to 3-4 firms in a given year and perfers companies located within the US.

The firm is currently interested in high-growth companies in the Medical Devices, Healthcare IT and R&D services sectors that have begun or are very near the commercialization stage. The firm is highly opportunistic in terms of subsector and indication in these areas, although companies that they have been involved with in the past include companies developing surgical tools, diagnostics devices, clinical trial analysis software, and companies developing platforms for identifying and screening potential therapeutic compounds.

This particular organization prefers to invest in companies with complete management teams that are currently earning approximately $1 million in annual revenue. That being said, the firm will also consider exceptional opportunities in companies that are pre-revenue on a case by case basis. The firm looks to be an active investor in selected companies seeking a board seat and often participating in follow on rounds on financing when required.

Hot Life Science Investor Mandate 1: CRO’s Corporate Venture Arm Leverages Services for Equity

~ Next Phase Admin ~ Leave a comment

The corporate venture capital arm of a global contract research organization (CRO) has the ability to allocate anywhere from $100,000 to $2 million of equity capital to companies. However, the arm only invests in opportunities where it can leverage its CRO services as a piece of the investment, and as such, looks to tailor its CRO services to the needs of its partners, helping them to reach key value-added milestones. The firm will consider opportunities worldwide, and plans to be involved with 6-10 companies over the next 6-9 months.

The corporate VC is willing to consider making investments into companies developing medical devices, diagnostics, and therapeutics that are able to utilize their parent company’s CRO services to advance their product into or through clinical trials. Currently, they are most interested in companies developing therapeutics and biologics with a lead asset anywhere from 6-9 months pre-IND, to Phase III of clinical trials. The arm is completely opportunistic in terms of subsector and indication, and is willing to consider companies targeting orphan indications.

The corporate VC often acts as a co-investor, and generally does not require a board seat. Despite not being active on the board, the firm is a long-term investor and looks to provide market, development, and regulatory insight and strategic advice into selected companies.

Hot Life Science Investor Mandate 2: US-based PE Invests Widely Across Healthcare Space

~ Next Phase Admin ~ Leave a comment

A private equity group based in the Central US has committed $150 million of capital, and typically invests in companies with EBITDA of $2-15 million; investments are generally acquisitions, and may consist of up to $20 million equity with the potential for leveraged investments of up to $75 million. The firm invests in the USA and Canada, and may consider investing in other countries on a case-by-case basis.

Healthcare is a focus industry for the group, and they invest widely across the sector. As the firm prefers to invest in companies that are cash-flow positive, investments are generally in companies that have products on the market. The PE group considers investments in any indication (including rare diseases).

The group prefers to invest in family companies or other companies that have a small number of shareholders. The firm looks for strong management teams, but has no fixed industry or academic criteria for assessing managers. Thus far, they have only invested in privately held companies, but the firm may consider investments in public companies.