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Hot Life Science Investor Mandate 2: VC Creates Relationships with Universities for Spinoff Concepts – June 27, 2013

26 Jun
A venture capital fund that has relationships with nearly 50 university partnerships has around $100M in assets, and acts very opportunistically within the life science space. The firm also acquires participation rights for university spinout companies.

About 70% of the VC’s life sciences investments are in therapeutics, 30% of which are distributed between devices, diagnostics, and discovery platforms. Currently, the firm is most interested in therapeutics, and is avoiding med-tech opportunities due to an internal perspective of unpredictability of the FDA’s activities in the med-tech space.

Though they do not have a strict mandate in terms of subsector or indication, therapeutics for oncology, cardiovascular, anti-inflammatories, and ophthalmology drugs have historically done well, and are favored by, the investment team.

The VC does not have a specific timeline for allocation, and will make investments as opportunities arise. Typically, they will invest $500K – $1.5MM initially and reserve 1-3x initial invested capital for follow-on rounds, however the firm is comfortable investing broadly across stage, from seed to late stage, and will selectively invest $100K – $250K in angel rounds on an opportunistic basis. The firm prefers to be a co-investor alongside other firms or syndicates, and lays significant value on investing alongside notable “top-tier” firms.

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Hot Life Science Investor Mandate 3: Pre- and Seed Stage Fund Interested in Medtech & Diagnostics – June 27, 2013

26 Jun
A pre-seed and seed stage fund that was established when its state government allocated $7 million in order to promote life science within its borders has managed to grow their initial investment to $20 million. The firm is now seeking new investments in the life sciences space, and typically initially invests around $500,000, but has the ability to invest upwards of $1 million. The firm has an evergreen structure, and thus is always looking for new investment opportunities. With that being said, the firm has no strict timeframe to make an allocation, but would invest in a firm within the next 6-9 months if a compelling opportunity is identified.

This particular firm is interested in the biotech therapeutics and diagnostics space, as well as in medical technologies. Although the firm does invest in therapeutic companies, they are most interested in the diagnostics and medical device space currently. Additionally, they are interested in companies that are developing research tools.

The firm makes seed and seed stage investments, and therefore does not consider firms that have raised a significant amount of venture capital, or more research-oriented projects that are better suited for an NIH grant. Consequently, the firm will consider companies that have a prototype of their medical device, or diagnostics companies that are in the pre-clinical phase of development.

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Hot Life Science Investor Mandate 1: Government Provides Foundation $2b to Fund Sustainable Tech – June 20, 2013

19 Jun
A government foundation in North America that was created to provide funding for novel technologies has been provided $2 billion in assets to further this mission.

The foundation is currently looking for new firms in the life sciences space for potential allocations. Although they do not have a set number of firms they wish to allocate to over the next six to nine months, they typically will provide capital to around 20 firms annually. With that being said, they will allocate to a number of firms over the next 6-9 months if some compelling opportunities are uncovered.   Currently, the foundation is most interested in the biotech space, specifically in firms focused on environmental biotechnology. In particular, the firm is seeking firms that are developing anti-pollution or waste remediation technologies.

The foundation is only looking for companies that are pre-revenue, and thus provide seed funding to these. The foundation is willing to provide up to one-third of the capital required to develop the technology. However, they must demonstrate that they will be able to obtain funding for the remaining two-thirds of the financing.

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Hot Life Science Investor Mandate 2: PE Group with Available Dry Powder Seeks CROs – June 20, 2013

19 Jun
A private equity group with offices in the US and Canada recently closed its 3rd fund at around $300 million, and is seeking new life science firms to invest in. The group currently has over $500 million in total assets under management. Although they have no set timeframe to make allocations, they do have a good amount of dry powder on hand, and would make an allocation within the next couple of quarters if a compelling opportunity were identified. They typically write equity checks ranging from $10 million to $30 million.

Currently, the group is most interested in the medtech and biotech R&D services space. Within the medtech space, the firm is very opportunistic, and will look at companies that are developing any kind of device. Within the biotech R&D services space, the firm is particularly seeking partnerships with contract research organizations (CROs).

The group executes recapitalization, growth equity, and buyout transactions. They are currently only looking for companies that have products on the market within the medtech space, and in the biotech R&D sector, they prefer companies that are cash-flow positive. With that being said, the firm is looking for firms whose EBITDA exceeds $4 million.

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Hot Life Science Investor Mandate 3: PE Group Interested in Analytical Services, CROs for Upcoming Investments – June 20, 2013

19 Jun
A private equity group based in the Eastern US has over $250 million in total assets under management, has raised three funds, and is currently looking for new investment opportunities in the life sciences space. While the firm has no set time frame to make an investment, they would allocate to a firm within the next 3-6 months if a compelling opportunity were identified. The group typically invests around $5-20 million per company.

Currently, they are looking for firms within the R&D services space. The firm is most interested in analytical services companies, as well as contract research organizations (CROs) that specialize in toxicology, however would consider other companies that fall within the umbrella of the biotech R&D services space as well.

This PE group executes recapitalization, growth equity, and buyout transactions. The firm is only interested in companies that are cash flow positive. With that being said, the firm is looking for firms whose EBITDA is in the $1-10 million range, and has annual revenue that does not exceed $75 million.

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Hot Life Science Investor Mandate 1: CROs, CMOs Prime Targets for Opportunistic PE – June 13, 2013

10 Jun

A healthcare investment firm based in the Eastern US, which runs both a private equity fund and a hedge fund, is currently looking for new investment opportunities for their second private equity fund, which recently closed at $200 million. The firm has more than $500 million in assets, and has raised two private equity funds and one hedge fund in the past year. They have plans to invest in 3-5 new firms by the end of 2013, typically making equity investments ranging from $10-25 million.

The firm is currently most interested in firms in the biotech R&D services and medtech space. Within biotech R&D services, the firm is looking for contract research organizations (CRO’s) and contract manufacturing organizations (CMO’s). They have also recently started looking for firms within the medtech space, specifically those that are producing medical devices. The firm mainly invests in US-based companies, but has allocated to international firms in the past; they would consider European firms on a case-by-case basis.

The firm provides growth equity, expansion capital, and engages in buyout and recapitalization transactions. The firm only invests in established, cash-flow-positive companies. With that being said, the firm will not consider any companies in the medtech space that do not currently have a device on the market.

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Hot Life Science Investor Mandate 2: VC Arm of Larger Fund Looks to Grow in 2013 – June 13, 2013

10 Jun

A fund located in North America with around $200 million in current AUM will grow to $400 million in assets by the end of 2013. The fund is the venture capital arm of a larger fund with AUM upward of $50 billion. Over the last 12 months, the group has allocated to more than 10 firms, making the VC number one in its region. The firm is currently looking for new opportunities in the life science space within the next 6-9 months. They typically allocate anywhere between $500,000 and $50 million per firm. The group is a lifecycle investor, which allows them to deploy capital throughout a firm’s entire financing lifecycle, and thus participate in every round of financing.

The firm is currently looking for companies in the information provider space, and is particularly interested in healthcare IT firms. The firm has a global investment mandate, but prefers North American targets for allocation.

The firm almost entirely invests in companies that are pre-revenue, but will consider companies that are not cash-flow-positive. The fund will consider firms with products on the market on a discretionary basis, but has no strict requirements in terms of their EBITDA or annual revenue.

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