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Investor Participation is Taking Off at RESI NYC

20 Sep

By Lucy Parkinson, VP of Investor Research, LSN

With RESI returning to NYC on November 5th, investors are flocking to sign up to participate. RESI’s unique high-touch partnering and breadth across the four key life science verticals of biotech, medtech, diagnostics, and digital health have attracted an audience of active investors from all over the globe.  The ratio of startups to investors at RESI events runs close to 1:1; there’s no better opportunity to find the right investor for your life science technology. See below for a selection of the registered investors.  We hope you can make it to RESI NYC to meet them.

Confirmed Investors and Strategic Partners

As of September 20, 2018

How to Be Successful in the RESI Innovation Challenge

20 Sep

By Gregory Mannix, Vice President International Business Development, LSN

LSN holds a high-profile life science competition at every RESI conference – the Innovation Challenge. Thirty early-stage fundraising companies with top-tier life science technologies are selected as finalists to exhibit a poster display of their programs to hundreds of investors and other conference attendees.  These companies compete for the exposure and visibility of being named as the top Innovation Challenge company. So you might ask: out of the hundreds of applications we receive, how do we choose the top thirty?  The LSN scientific review team has compiled a list of attributes we look for in a company and its IC application.

While the following applies to the Innovation Challenge application itself, the criteria and the tips we provide are also guidelines for companies to use in their fundraising efforts. Much of our evaluation and the questions we ask are based on standard criteria that entrepreneurs will face when speaking with investors.

What are the key elements of a high-scoring company?

The LSN scientific review team uses a detailed rubric with a 200-point scoring system. Our evaluation process is based not only on scientific merit, but also on how ready the company is to present to an investor (“investor-readiness”). A perfectly scored company would have a transformational technology that can achievably address a highly unmet need using a differentiable, novel approach or target. Alongside high innovation, differentiation, unmet need and market fit, the 200-point company would have a broad IP position, an experienced management team and CEO with top-tier advisors and strategic alliances with manufacturing, commercial or clinical partners. The company will also receive high marks for having what we call “investor-ready” marketing collateral (executive summary, pitch deck, website).

Application Tips

Clearly describe your technology.

Like any marketing material, you need to be clear. Be sure you understand and answer the questions fully. The team has seen unclear descriptions of a company’s technology is and its significance in improving on current technology, making it difficult to evaluate.

Be forthcoming in your answers.

The team frequently reviews applications that state they have no competitors in the space, when that is not actually the case. Even novel products have competitors; there is a standard-of-care for any given disease or condition.  If your product represents an incremental improvement, just say so.  It can still be compelling!

For example, competitors for your disease-modifying therapeutic may be symptom-treating therapeutics in the same indication that are either commercialized or being developed. You should identify these symptom-treating therapeutics and highlight your novel, targeted approach that makes your product disease-modifying.

Explain your current status in detail.

Outline everything you have in terms of your current standing, while also providing your outlook on where you hope to go. Avoid ambiguous statements such as, “CEO is an experienced entrepreneur”. Instead, provide details that highlight the CEO’s experience – years as an entrepreneur, number and names of companies exited, background expertise, etc.

Provide near-term and-long-term projections.

If you do not have certain criteria, such as a strategic alliance or IP, it’s OK. State your current standing and provide what steps you are currently taking to reach those milestones. For Alliances and Collaborations, state your partners and likely partners (even if you just have a verbal commitment); for IP status, state how many patents you have filed or are planning to file. Providing us with your strategy is better than a simple yes or no.

Provide sufficient detail, but no need to overdo it.

You shouldn’t finish this application in 5 minutes, nor should it take you 5 hours. Your answers should be brief but detailed.  We have received hasty, effortless applications that were subsequently quickly given a low score. On the other hand, as a fundraising company, you shouldn’t need to spend an excessive amount of time on the application. These are all straightforward questions that you should be familiar with and be comfortable answering, as your executive summary should contain all of this information. This application is the backbone of our evaluation process and is, essentially, your executive summary to us.

Send us your marketing collateral.

If you have marketing collateral, send it. This includes your pitch deck, executive summary, website, videos – any supplemental material that can boost our understanding of your technology and whether your company is investor-ready. The application provides limited space – while this forces you to get straight to the point, supplemental material explains what an application cannot (i.e. figures, graphs, pipeline, non-confidential data, etc.).

Overall, applying for the Innovation Challenge is great practice for fundraising companies. For those who have yet to apply, be sure to take note of these suggestions and apply here by October 3rd!

Health Systems Partners Panel at RESI Boston, September 6th, 2018

20 Sep

By Claire Jeong, Senior Research Analyst, LSN

claireAn increasing number of health systems are seeking to form strategic partnerships with early-stage companies that could serve as a meaningful solution for the various complexities within the healthcare system. These strategic partnerships would be tremendously valuable for a start-up entrepreneur, as the value-add that health system organizations can provide are not limited to direct equity investment. Through working with large health/hospital systems, companies gain access to various channels, abundant resources, and relationships with key clinicians or medical professionals that they otherwise may not be able to manage on their own.

So how can companies seek to access these channels, and what exactly does each organization have to offer? At RESI Boston on September 6th, we had the tremendous pleasure of inviting 5 panelists from health systems – all with a unique approach to working with early-stage innovations – to speak about their work and perspectives in fostering novel innovations that can impact the course of healthcare.

For those who missed this session, we have prepared a shortened video of the panel that highlights the main discussion points. If you are someone seeking to leverage relationships with health systems, I hope you find these insights helpful!

Our panelists included:

  • Brent Stackhouse, Vice President, Mount Sinai Ventures, Inc. (Moderator)
  • Richard Gordon, Director, Inova Strategic Investments
  • Anne Wellington, Managing Director, Cedars-Sinai Accelerator
  • Eric Feinstein, Investment Director, Northwell Ventures
  • Sarah Lindenauer, Product & Portfolio Manager, Boston Children’s Hospital IDHA

A brief profile for each organization:

Mount Sinai Ventures – Mount Sinai Health System is a hospital system in New York. Their venture arm, Mount Sinai Ventures, started in 2008 with the goal of investing in care delivery (urgent care, ambulatory services). About 4 years ago, their interests diversified into medical devices and digital health. The group invests $500K in average, as little as $50K and as much as $1.5M, with about 20 investments in the portfolio. Mount Sinai Ventures is constantly trying to find ways to partner with other individuals within the health system and build or create value for portfolio companies.

Inova Personalized Health Accelerator (Inova Strategic Investments) – Inova is a hospital system in the Northern VA area, and IPHA is their accelerator arm. Inova has historically made several strategic investments, generally to drive innovation into the hospital system. They have a $150M balance sheet commitment which they are aiming to allocate over a 24-month period. The firm invests in multiple ways – they are a fund of funds and have a LP position in several like-minded funds. With regards to their seed portfolio, the average investment size is around $500K-1M. IPHA has a fixed price, fixed equity structure ($75K for 10% equity stake, with potential for $250K investment in follow-on).

The Cedars-Sinai Accelerator – Cedars-Sinai Accelerator is the accelerator program of Cedars-Sinai Medical Center, through which they invest $120K in participating companies. This has been in partnership with Techstars in the past but they will soon be operating independently. In partnership with MemorialCare, Cedars-Sinai is also involved with seeking investments through Summation Health Ventures that focus on Series A/B investments in the $5-10M range.

Northwell Ventures – Northwell Ventures is a venture equity practice at Northwell Health. Northwell is the largest health system in NY state, with 23 hospitals in the network. They are about to close on their 16th investment. Their investment areas of interest ranges from medical devices through digital health and other services. They also participate in corporate carveouts, where they put seed capital into non-core assets within the system and partner with external capital in efforts for revenue cycle management.

Boston Children’s Hospital IDHA – Based in Boston, MA, Boston Children’s Hospital’s Innovation & Digital Health Accelerator (IDHA) is Boston Children’s Hospital’s accelerator arm and is supported by a 50-person team. Of this team, about 25 people are technologists, software developers, etc. and is very deep on team/resources. While there is no investment arm, IDHA provides very high-touch, customized support, and software development resources that provides strategic value beyond capital.

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