Hot Life Science Investor Mandate 1: Seed Stage VC Seeks Medtechs for Partnerships

A seed stage venture capital firm located in the Eastern United States, which makes equity investments of up to $100,000 into seed stage organizations, is focusing on emerging spinouts from Universities. The firm’s fund has an evergreen structure, and is currently looking to make one additional investment in 2013.

The VC is currently most interested in investing in a therapeutics company, as they have the most experience in that sector. However, the firm would also consider allocating to a company developing a medical technology or diagnostic. Within these sectors, the firm is opportunistic in terms of subsector and indication, and will evaluate these companies on a case-by-case basis.

The firm is always looking to make a strong partnership with their partner’s science teams, so having capable leadership in place that is willing and able to work alongside them is paramount. As they are looking for companies fresh out of the university setting, they exclusively invest in pre-revenue companies.

Hot Life Science Investor Mandate 2: Family Office Seeks Opportunities in Medtech Space

A family office located in the Western US with around $100 million in assets is looking for a compelling opportunity for allocation within the next 6-9 months. The office invested in more than five deals in 2012, typically between $1-5 million per firm.

The foundation is most interested in medical devices, and will look at firms within the full gamut of medtech subsectors. Typically, the office allocates to firms that have at least one product on the market. They have no strict criteria in terms of a firm’s EBITDA or revenue, but require that any firm in which they invest has goals to lower the cost of healthcare.

Hot Life Science Investor Mandate 3: Experienced PE Looking for Medical Device Companies

A private equity company based in the Central United States has invested over $700 million throughout its lifetime, and is currently making investments out of its 12th fund, which raised $100 million. The firm is looking to make a growth equity allocation of around $3-$5 million initially, and up to $10 million over the lifetime of the investment. The firm will consider companies in any location, and is looking to make 4-5 investments over the next 12 months.

The PE invests in approved medical devices, healthcare IT, biotech R&D services and diagnostics. They have experience in delivery devices, implantable devices, and reusable instruments, so companies within these subsectors would be ideal. However, other medical devices may also be considered. The firm also has interest in the biotech R&D services sector, and in subsectors of CRO’s & diagnostic instrumentation.

The firm is looking to invest in a company with approximately $5 million in yearly revenue with a strong management team. They will consider small public or private companies for investment, and seek to acquire an active position on the company’s board.

Hot Life Science Investor Mandate 1: Eastern US Angel Group Targeting Orphan Indications

An angel group based in the Eastern US currently has around $15 million in total assets under management, and is currently deploying capital from its third fund. The firm is looking for new opportunities in the life science space, but has no set timeline to make allocations. The group typically allocates between $250,000 and $2 million per company.

Currently, the angel group is most interested in the biotech therapeutics and medtech space, but only those that are targeting orphan indications. The group will not consider therapeutics and diagnostics that are treating any other indications besides orphan diseases due to the current difficult FDA regulatory framework.

The group is looking for pre-revenue companies within this area. However, they would consider companies in the biotech therapeutics space that have products in the preclinical stage through phase III of development, and in the medtech space the firm is looking for companies that have a product in development, or have a prototype.

Hot Life Science Investor Mandate 2: Opportunistic PE Seeks CMO for New Allocations

A private equity group based in the Eastern US has around $200 million in assets, and has raised two funds. The firm is currently looking for new opportunities in the life sciences space, and although the firm has no set time frame to make allocations, they are always opportunistically looking to source new investments in the space.

The firm’s typical equity investment size ranges from $10-40 million. Currently, they are most interested in information providers as well as Biotech R&D services firms. In the information provider space, the group is seeking healthcare IT firms, and in the biotech R&D services space, the firm is looking for contract manufacturing organizations (CMOs). The firm solely invests in firms based in North America, and will consider companies headquartered in either the U.S. or Canada.

The firm is looking for companies that have $5-15 million in EBITDA, and $35-100 million in revenue, and $25-125 million in enterprise value, however EBITDA is the most important criteria in terms on the firms investment requirements. Accordingly, the firm does not invest in pre-revenue companies.

Hot Life Science Investor Mandate 3: Venture Arm with Strong Backing Deploying Capital to Healthcare IT

A venture and expansion capital arm of a larger organization based in the Central US has around $300 million in total assets under management, and is currently deploying capital from its third fund, which closed at nearly $200 million. The firm is currently seeking opportunities in the life science sector, and while they have no strict timeline to make investments, they would invest in a new firm within the next 6-9 months if a compelling opportunity were identified. The firm’s equity investments range from $3-10 million, but are typically in the $8-10 million range.

Currently, this firm is most interested in the medtech, biotech diagnostics, and information providers spaces. Specifically, they are looking for healthcare IT firms within the information providers space. The firm is very opportunistic within the areas of biotech diagnostics and medtech, and would be willing to look at companies that fall within the full gamut of the medtech and diagnostics subsectors. The firm, however, will only consider US based firms within the venture and expansion capital space.

The firm is most interested in early stage companies, and is interested in pre-revenue firms. With that being said, they will look at firms that have products that are in-development, or firms that have a prototype of their product, but will not consider firms that have a device that is on the market.

Hot Life Science Investor Mandate 3: Generalist PE Fund Interested in CROs, CMOs

A private equity fund located in the Central US with roughly $1 billion under management intends to make allocations in the tens of millions on a case-by-case basis in 2013. The firm is generalist and invests across sectors, but has a specific interest in life sciences & medical technologies. Within this space, the firm is opportunistic in almost every aspect, but does require that an issuer be EBITDA-positive. This means that a firm must have at least one product on the market generating revenue to be of interest. Though the firm has looked at and invested in therapeutics and medtech companies historically, a primary interest currently is service providers such as CROs and CMOs.