By Dennis Ford, Founder & CEO, Life Science Nation; Creator of RESI Conference Series

From my experience in the fundraising arena, there is a pervasive lack of understanding regarding what it actually takes to raise capital. Entrepreneurs underestimate the associated time and resource commitment needed for a successful fundraising campaign, and that exacerbates the capital-raise dilemma. Part of the overall challenge is how to raise awareness among entrepreneurs as to the true effort required for a fundraising campaign. The first issue is that a campaign should be treated as a full-time undertaking – one or two people in the company have to commit to this endeavor as their primary focus. You can try and do it part time or catch-as-catch-can, by attending a few conferences a year as many companies do, but this is much more likely to be ineffective and unsuccessful, especially if your company has a limited runway left.

The fact of the matter is, fundraising takes a full-time commitment. Of course, a CEO or CSO has to continue their supervisory roles and company tasks (that’s the other 40 hours), but make no mistake about it, the majority of the setting up, launching and then executing a campaign should be your “primary effort” if you want to see results. Consequently, the BD staff at LSN spend most of our time explaining this critical fundraising dynamic to fundraising CEOs. The LSN mantra is:

• Fundraising is not a part-time proposition
• Before starting your campaign, make sure your branding and messaging is lucid and cogent. Your marketing collateral should be able to garner investor interest on the first read – this involves really working on your story
• Fundraising is a numbers game, and because it’s a numbers game you need to move from a regional to a global mindset to increase statistical probability – your local region may give you 50 investors that are a fit for your firm, where looking globally will give you 500 or more targets
• Get a list of investors that are a fit for your stage of development and product, The Global Target List (GTL)
• Set up a CRM to manage the list of 500 or so global investor targets
• Canvass and work the GTL: Get a “people person” resource to canvass the targets through phone and email campaign. It is great when CEOs cold call but much more productive when a professional admin or BD staff canvass and set up the calls
• You need to get out of the building and out in your turf. LSN has six global RESI events that can make meeting partners very efficient. Fundraising involves creating a dialogue that turns into a relationship and then, potentially, a capital allocation.
• Follow up is a great challenge and also another universe unto itself. Following up (or neglecting to) makes or breaks a campaign on many levels.

Most entrepreneurs fail because they think a fundraising campaign is just a side project. Part-time fundraising doesn’t scale and elongates the effort, increasing the timeline. On average, it takes 9-18 months to raise capital, data LSN has aggregated from discussions with many fundraising CEOs and early-stage investors. I am always shocked when, during my fundraising boot camps, I ask the audience how long they think it takes, and the answer is 6-9 months. Some people do get funded in that timeframe, but it is the exception and not the rule.

LSN has been in the middle of the early-stage life science fundraising arena for the past seven years and I am happy to share what I have learned. My challenge is trying to help educate startup executives in what it takes to do a fundraising campaign. Fundraising is a universe unto itself and isn’t a kinda sorta part time thing. The most shocking realization that a fundraising CEO has to deal with is that if you want to raise capital, make it your main priority, or find someone in your company who will, to maximize your chance of success.

By Jessica Yang, Investor Research Analyst, LSN

Life Science Nation (LSN) is going to exhibit and organize a series of Fundraising Workshops during the BIO ASIA Taiwan International Conference and Exhibition on July 25-28 in Taipei Nangang Exhibition Center, Hall 1, 4F. Come join us for two complimentary workshops on July 25 and July 26.

Workshop Venue: Taipei Nangang Exhibition Center, Hall 1, 4F, Number N930, Room 1

July 25, 2-3 PM (GMT+8)

Fundraising Boot Camp

A fundraising workshop that explains the nuances of creating and managing an effective outbound fundraising campaign. The content is tailored towards emerging and experienced scientist-entrepreneurs seeking to raise capital.

• About Life Science Nation (LSN)
• Raising Capital: The 3 Most Important Questions
• The Changing Investor Landscape
• Debunking the Top 10 Old Myths in Fundraising
• Planning & Infrastructure for an Outbound Fundraising Campaign
• Building Your Brand Through Consistent Messaging
• Key Components of Fundraising Marketing Collateral

July 26, 10-11 AM (GMT+8)

Branding & Messaging Workshop

To win capital, you must stand out from the crowd. The first way to do that is to have top-notch marketing collateral. The workshop discusses how to provide potential investors with high-quality, professional materials—materials that engage them, communicate your message clearly and concisely, and present the information they want to see in a way that helps them to decide quickly and easily if you are a potential fit for their needs.

We also welcome everyone to visit our booth at number M628! Simply leave your business card when you visit our booth, and you will get a chance to win a free ticket to the RESI Asia Taipei Conference on November 14 2019.

Speakers:

Dennis Ford, Founder & CEO, Life Science Nation; Creator of RESI Conference Series

Dennis Ford is an entrepreneur and author with expertise in sales, marketing, and business development. He has spent most of his career finding, vetting and launching a myriad of technology-based companies. Over the last decade, he has worked extensively with global alternative investors and is deeply interested in getting funding for high-growth early-stage technologies. He is a big proponent of using profiling and matching technology to find that all-important business fit in the marketing and selling process. In today’s context Dennis can connect early stage life science companies with 10 categories of global partners thus making the finding of capital and distribution channels very efficient. Dennis created the Redefining Early Stage Investments conference series to facilitate an interactive ongoing dialog between buyers and sellers in the life science arena. Before LSN, Dennis was the President and CEO of a company that improved the way hedge fund and private equity fund managers raised capital and marketed their funds to investors.

Ford is the author of The Peddler’s Prerogative and The Life Science Executive’s Fundraising Manifesto, two well-received sales and marketing books.

Greg Mannix, VP of International Business Development, Life Science Nation

Greg Mannix is VP of International BD at LSN. After graduating from the University of California, he moved to Europe where he began a career in the life sciences and obtained a Master’s degree from IE Business School in Madrid. He has extensive experience in sales and marketing management in large medical device corporations and small start-ups alike, giving Greg a well-rounded international experience in the healthcare field. He has worked extensively in Europe, North America and Latin America and he speaks English, Spanish and French.

Greg relocated to Boston 3 years ago to set up the US affiliate for an early-stage Med-tech company from Spain and he immediately took to the vibrant startup community there. Working for LSN is a great way to stay involved in that exciting space.

Jessica Yang – Senior Investor Research Analyst, Life Science Nation

At LSN, Jessica Yang is responsible for curating the LSN Investor Platform and manages relationships with an extensive network of investors and Asia strategic partners across the globe. Jessica also leads LSN’s business development efforts in Taiwan and recently led collaboration efforts with the local government organization in bringing a large delegation of Taiwanese start-ups to RESI. Jessica also organized a series of fundraising workshops in Taiwan to help over 100 fundraising companies. Prior to joining LSN, Jessica has worked in GENEWIZ in New Jersey and Roche Diagnostics in Taiwan with product marketing projects, where she became passionate about becoming more involved in the life sciences industry. Jessica received a Master of Science Degree from New York University in Biotechnology and Entrepreneurship and a Bachelor of Science Degree from Chang Gung University in Medical Biotechnology.

By Dennis Ford, Founder & CEO, Life Science Nation; Creator of RESI Conference Series

I used to teach an entrepreneurial sales class at a local university in Boston. The first day of my class I would pose a question right out of the box: ‘OK class, show of hands please! How many of you would jump out of an airplane without a parachute? Simple question, show of hands please.’ Inevitably in every class I would have one or two who for one reason or another may be considered on the margins (as entrepreneurs can be) would raise their hands. I would point out that there are one, maybe two, hands, the rest are just sitting there looking confused and anxious. At that point I would say ‘OK! Thank you class, the two that raised their hands can stay and the rest of you can go.’ This would lead to more confusion and fidgeting and finally, I would say, ‘let me give it to you all straight – you have joined this class because you have an idea or a company that you want to start. Taking an idea and starting you first company is the equivalent of jumping out of an airplane without a parachute.’

Yes, you may figure out something on the way down. Yes, you could somehow miraculously survive the fall. But, realistically the odds are, you are probably going to hit the ground and die. That is the world of the startup. It’s a learning process. It’s getting experience in something totally new and different. It’s learning from your mistakes. And then I would say ‘You are all welcome to stay, and now we have to figure out how not to kill your company.’

That is precisely the chances of you getting your first startup off the ground. The odds are stacked against you from the get-go. There is so much to learn and know. The good news is, if you have tried a few times and learned lots along the way, the better chance you have of figuring it out and surviving your next company. The message here is of course you will strike out the first few times you get up to bat, but if you persist, you adjust and eventually you make it, you get there. I’ve done about a dozen startups over the years: the first one died and the last one is heading into its seventh year.

By Lucy Parkinson, VP of Investor Research, LSN

RESI’s panel and workshop sessions explore many topics in early stage life science funding.  At RESI Philadelphia, the Investing in Cell & Gene Therapy panel took an in-depth look at how investors approach the most complex new therapies.

The panel was moderated by Shyam Patel (Associate Director, Portfolio Development and Review, California Institute of Regenerative Medicine), and the panelists were:

• Jane Hollingsworth (Managing Partner, Militia Hill Ventures)
• David Xu (Chief Business Officer, Viva Biotech)
• Peter Young (Venture Partner , Pappas Capital)
• Hannah Shen (Associate Director, BridgeBio)

While the cell and gene therapy space is still at the cutting edge of life science technology, the field is inching closer to mass adoption.  As Shyam Patel says, following recent landmark drug approvals, there is now a huge pipeline of potentially transformative cell therapies and gene therapies in development, with a thousand clinical trials ongoing right now, and $13 billion in investment in this space last year.  “There’s a lot of money, a lot of products, and a lot of choice for both investors and companies.”

However, these therapies present unique challenges for investors.  Peter Young noted the difficulty for traditional VC investors of managing a fund with a 10-year life cycle and investing in science that takes a generation to mature to the point where it’s it’s suitable for routine use.  Additionally, the industry needs time to adapt to these new technologies, in terms of regulation, manufacturing and reimbursement.

According to David Xu, manufacturing is a key piece of the puzzle.  How can a company consistently and effectively produce a cell therapy or a gene therapy?  As an investor, he pays attention to this technical angle, along with the unmet need involved.  “If you are addressing a problem in which the unmet medical need is not obvious and you don’t have a new angle addressing the manufacturing/technical side of the problem, it’s probably not a good project to look into.”  By investing in technical improvements, it will also be possible to reduce the cost of these therapies, which at present can run to over a million dollars per treatment.

The investors also explored the regulatory issues involved, and noted that the FDA are adopting policies that enable innovation, such as being open to trials that involve fewer patients.  But there’s a challenge for startups in terms of getting the right regulatory expertise.  Per Jane Hollingsworth, “The regulatory part is difficult as there are only so many people out there who really know this space from an FDA perspective.  The FDA is overwhelmed as the result of the successes of this sector.  Now there are many clinical trials taking place and it’s incredible how busy they are.  They want to work with people who understand the pressures they’re under in this sector.  It’s important to attract the right regulatory consultants who can help your company navigate the FDA.”

Circling back to the issue of how an investor’s fund structure can make investments in new fields difficult, Hannah Shen described how her firm BridgeBio has found benefits from using a different structure, in which a subsidiary company is created for each of the assets they invest in.  Hannah says that one benefit of this model is that it makes it pososible for the firm to focus on rare disease programs as part of the portfolio.

So how do investors find the right opportunities in cell and gene therapy?  The investors’ dealsourcing methods include referrals, conferences like RESI and also scientific conferences, tech transfer outreach and academic collaborations, and of course inbound inquiries.  David said that of the pitches his team received, half didn’t pass initial screening.  As his firm (Viva Biotech) is a very early stage investor, they focus on the quality of the team and the market potential of the product.   For dealscreening at BridgeBio, Hannah Shen focuses on the scientific understanding of the asset, and whether BridgeBio’s resources are a good fit for moving the product forward.

Jane Hollingsworth went into depth on Militia Hill Ventures’ strategy – and said that issues like manufacturing and pricing are not as important in their consideration: “Either we identify a problem and look for the best way to solve it by gathering the best scientific expertise around the world, or alternatively, a really hotshot scientist comes and tells us the problems they’re working on.  It’s always the problem and the people.  If those two factors get through our screening, then manufacturing is just a detail – and reimbursement is even less so. If it’s an unsolved problem that gene therapy could solve, and the best team in the world is working on it, and scientifically it looks viable, we’re going to assume that if it’s successful it will be paid for.”

So will these new technologies become a significant piece of the biopharmaceutical market soon?  Shyam Patel has some pause.  “I would differentiate between clinically promising and commercially promising projects.  The most clinically advanced projects that CIRM [California Institute of Regenerative Medicine] has supported are focused on diseases with small patient populations, and it’s not clear if these projects will be commercially successful.  That’s where they see the most clinical success right now.  What’s commercially promising could be something completely different.”  Nevertheless, the investors continue to look for revolutionary new technologies in this space that could become success stories for their portfolios.

By Nono Hu, Director of Marketing, LSN

Boston is the home town of Life Science Nation (LSN) and the RESI conference series, and RESI has never officially been part of “other” events going on in Boston that week. LSN relishes being independent, bringing over 350 global investors to Boston, with a unique one-to-one investor to CEO ratio in RESI Partnering. LSN’s annual RESI Boston event typically brings over 5 billion in vetted early stage investment mandates to the RESI Conference.

The RESI Boston event is September 11^th at the Westin Copley Place, and LSN is proud to announce we already have signed up many top life science venture capital firms including NEA, ARCH Venture Partners, 5am Ventures, Bain Capital Life Sciences, and Deerfield Management. Once again, LSN will be bringing the First Coast Innovators’ Gathering which showcases technology hubs, incubators and accelerators from the Boston to DC corridor this year we will feature a bevy of the top hospital, university, state and federal early-stage technology innovators.  Last year RESI Boston held over 1200 meeting between fundraising CEOs and investor channel partners. You can review the agenda here.  Early sign up offers are available – register now.

Confirmed RESI Boston Investors

As of June 13th

And More…

By Karen Deyo, Investor Research Analyst, LSN

RESI’s focus is on gathering hundreds of investors together to meet with entrepreneurs.  In addition to one-on-one RESI Partnering meetings, RESI’s panel tracks provide entrepreneurs with the opportunity to hear advice and candid insight on the fundraising process directly from experienced investors.

You can view the agenda below – this RESI event provides the opportunity to hear from medical device exit partners in Medtech Strategics, a panel of Impact Investors who seek opportunities to have a positive social outcome as well as financial return on their investments, a gathering of First Coast Tech Hubs that will explain how they support the earliest stage companies up and down the East Coast, and a new special session on the complex field of China Cross-Border Partnerships. Join us at RESI Boston to see these and other exciting panels and workshops!