Fundraising Season 2016: Making the Most of January – June

By Dennis Ford, Founder & CEO, LSN

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Let the Fundraising Begin! It’s January 2016 . . . Oops . . . We are almost into February! Where did January go? JPM preparation, JPM attendance, JPM recuperation (from the flu or cough or whatever that was), and then JPM follow-up. The swathe of time ahead from February to June is very important to a scientist-entrepreneur or a life science fundraising CEO, and you should be contemplating making hay while the sun is shining.

I know from firsthand observation that the game is afoot. RESI@JPM had over 900 investor meetings in just one day. 350 investors met with over 400 early stage life science entrepreneurs. Based on my back-of-the-napkin estimate, these entrepreneurs were seeking a total of several billions of dollars in development capital—and the investors in attendance have, in total, billions of dollars ready to allocate. The question therefore is: how do you get into the fray?

The first point you have to understand is that fundraising isn’t something you kinda sorta do on the side. It’s a full-time commitment that needs focus and attention and an organized, budgeted campaign.

LSN is now entering our 4th year in the life science arena, and we have supported hundreds of entrepreneurs in using the LSN Investor Platform to prepare to get on the road and raise money. We’ve also met another thousand or so who’ve attended LSN’s RESI Conference events over the last three years. Our consistent advice to entrepreneurs has been to decide honestly if you are committed to raising capital. If so, the next step is to assess your team. Do you have the science maven, the experienced business development person, and a resource available to make the initial phone calls and set up the meetings and follow-up meetings? This is where many campaigns fail: not getting the team straight.

The other key preparation point is to get the right campaign resources together. You need to make sure you have a list of global early stage investor targets that are a fit for your indication and stage. To get the attention of these investors successfully, you must have cogent messaging and a compelling web presence that allows interested parties to net out your value proposition and clearly see where you are in the developmental process.

As a life science entrepreneur, you are up against many competitors for capital, and if you are not up to date with new developments in the life science investment world, then you may be out of step and inefficient in your efforts. At LSN we have seen an unprecedented worldwide investor interest in all facets of early stage life science. It’s real and it’s happening now. It’s a global playing field, and you have to get in front of as many investors as possible that are a fit for your company. Staying regional or focusing on just one category of investor is extremely limiting. Take the time to learn the investor categories that are a fit for you; don’t build barriers, build bridges to success.

Consumer Health Investors Define Their Space and How They Evaluate Opportunities

By Cole Bunn, Research Analyst, LSN

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At RESI@JPM, LSN put together our first ever Consumer Health panel.  The session spotlighted investors who focus their allocations on companies that are developing technologies aimed at the consumer health market. The firms represented on the panel are Johnson & Johnson Innovation, HealthQuest Capital, Montreux Equity Partners and Astarte Ventures. These experienced investors speak to how they see the consumer health market developing and what proof points they typically look for prior to investing.  Participants also give firsthand insight on the investments they’ve made in this burgeoning sector.

To hear directly from the investors, watch the RESI video recap here:

Avoiding Roadblocks on the Way Out of San Francisco

By Lucy Parkinson, Director of Research, LSN

In the biotech and medtech worlds, January is a key month for meeting with potential partners and investors. At RESI and other events in San Francisco, I talked to many entrepreneurs about their experiences in fundraising during the healthcare conference season and found a few common challenges.

Meet the Right People

Especially during the January whirlwind of meetings, it’s easy to say that you’ve been meeting with investors and building your network. I’ve found that it’s more useful to ask not if you’ve had meetings or even how many, but if you’ve been meeting with the right people. It’s important to find out in advance of an event whether there are investors attending who are a fit for your company and your technology. Some of the major January events are well known for focusing on later stage, publicly traded companies, so early stage companies often have to do more legwork to find the right investors to book meetings with. This might involve booking meetings in locations away from events or arranging to meet at a smaller event or reception.

Take a Broad Approach

January is a good time to get exposure to the full scope of the life science investor world. Investors gather from all over the world to join the annual San Francisco biotech circus, and they all bring their own unique mandate and life science investment insights with them. Unfortunately, not all the entrepreneurs I spoke to were open-minded about investors. I met one medical technology entrepreneur who had been trying to book meetings with family offices. At LSN, we work with many family offices that invest in the life sciences, but they’re only one among the many investor categories to which we reach out. I suggested that the entrepreneur contact a particular corporate VC that specializes in his type of technology and have since heard that he’s entered a dialogue with them.

Don’t Become Complacent

There’s a great temptation to put on an upbeat facade about the meetings and events that occur in January. Even if you’ve met with many investors who seemed very interested in your company, you have to consider that they also met with many other exciting entrepreneurs as well! It’s a bad idea to count your chickens when it comes to seeking investment. Investors generally see far, far more good quality life science assets than they’re able to fund, and even if you’re progressing through their deal process, you can’t assume you’ll get the allocation. It’s important to keep pursuing as many leads as possible until the check hits your bank.

RESI@TMCx Take 2: LSN, JLABS and TMCx Team-up Again for Early Stage Investor Event

By Michael Quigley, VP of Market Research, LSN

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On April 11th, Life Science Nation will be bringing together hundreds of senior level executives from investment firms, corporate strategics, and emerging biotech, medtech and digital health companies to the TMCx accelerator space at the Texas Medical Center in Houston. The recent RESI Conference in San Francisco had nearly 800 registrants and a full partnering floor. The event drew so much interest that registration was shut down a week prior to the event – and we received many regretful notes from those who wished they’d signed up sooner!

In addition to the firepower that LSN brings to the table, TMCx will be showcasing their second class of digital health and medical device technologies which will be announced later this month, and JLABS will be bringing senior executives from Johnson & Johnson and a number of entrepreneurs from the JLABS incubators.

RESI@TMCx will be a venue for entrepreneurs to meet with all 10 categories of investors LSN tracks including Family offices, Corporate Venture Funds, Angel Groups, Venture Philanthropy, Venture Capital and more. The RESI Partnering Forum will allow fundraising executives to identify and book up to 16 meetings with those diverse life science investors who fit their company’s technology sector and stage of development. Through an expansive series of investor panels, RESI @ TMCx will present current topics covering investment mandates and procedures for identifying and qualifying candidates. Additionally, RESI’s workshops will provide more in-depth advice on every aspect of the fundraising process.

 

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RESI@TMCx: Innovators Are Invited To Apply

By Lucy Parkinson, Director of Research, LSN

Congratulations to Clearsight, Eve Medical, and Briteseed for their success in the RESI Innovation Challenge last week; at LSN, we hope that the success of these companies in RESI’s virtual fundraising challenge translates into real investor dollars!

If you’re interested in seeing your company’s name up there on the winner’s list, you can now apply to the RESI@TMCx Innovation Challenge for the conference on April 11, 2016. Successful applicants will be provided with a spot in the RESI Exhibitor Hall, and the challenge provides entrepreneurs with a way to engage with RESI’s audience of active life science investors throughout the event. All RESI attendees are provided with “RESI Cash” tokens that they can allocate to the entrepreneurs whose technologies they expect will be most successful. At the end of the day, the capital invested will be tallied up and the top 3 participants will be announced.

This exhibition-style, interaction-focused format was developed by LSN because we’ve found more traditional “pitch contests” to be of poor value for startups. If there are any active life science investors viewing a pitch session (and we’ve found that many investors just aren’t interested in this format), they don’t have a direct way to interact with the pitcher and offer their feedback. RESI therefore focuses on providing startups with the opportunity to meet investors face to face, both through one-on-one meetings and informal networking, and the RESI Innovation Challenge provides entrepreneurs with an eye-catching way to make those in-depth conversations happen.

Previous RESI Innovation Challenge winners include:

Clearsight (Aurora, CO)

Rna Diagnostics (Toronto, ON)

Redox (Madison, WI)

Empiriko (Newton, MA)

ORIG3N (Boston, MA)

Kineta (Seattle, WA)

If you’re developing a cutting-edge biotech or medtech product, apply to the RESI Innovation Challenge to put your technology into the spotlight. We’ll look forward to seeing you at RESI@TMCx.

RESI@JPM – The Good News, And The Bad News

By Dennis Ford, Founder & CEO, LSN

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With LSN’s Redefining Early Stage Investments (RESI) conference coming up next Tuesday, I am delighted to announce the good news is RESI seems to have caught fire in the early stage global investor community, with investors making up half of the registered attendees.

The bad news is, when you add that to the fundraising CEOs, RESI Innovation Challenge participants, exhibitors and sponsors, we’ve reached capacity at our venue. We’re therefore unable to take any more registrations.

However, here’s the program guide; we hope that if you didn’t make it to RESI@JPM, you will be able to join us at one of our three events later this year in Houston (April 11th), Toronto (June 23rd), or Boston (September 13th). If you’d like to attend a future RESI event, plan early!

 

Who Will You Meet at RESI San Francisco?

By Cole Bunn, Research Analyst, LSN

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Life Science Nation’s mission of connecting scientist entrepreneurs with capital gave rise to the Redefining Early Stage Investments (RESI) conference nearly 3 years ago. As we approach our seventh RESI conference, during the highly anticipated JP Morgan week in San Francisco, we’re expecting a record of well over 300 investors representing over 200 different firms in attendance. Figure 1 shows a breakdown of investors by type who will be at RESI San Francisco on January 12, 2016. You can also view the firms represented here.

Venture capital is the most represented investor type, and this includes a growing number of non-traditional venture firms in today’s investment landscape. For instance, the relatively new emergence of the “micro VC” has more capital flowing into seed and series A stage companies. As shown here, several other investor classes looking for early-stage life science technologies that don’t fall under the venture capital umbrella also have a large presence at the RESI conference. This diversity of investors means that RESI Partnering can provide RESI’s great variety of attendees with the opportunity to make a connection with a financing partner that’s the right fit for their round.

Life Science Nation’s network of varied investor types will be showcased on an assortment of panels throughout the day. The 16 panels scheduled to take place at RESI San Francisco will cover the full range of companies in the life science space (biotech, medtech, diagnostic and health IT) and the different investor class’ tactical guidance for navigating the investment process of their respective niches and outlook on the future of each sector. The LSN research team’s unique perspective on the investment landscape has spurred a new panel that will be held for the first time at RESI San Francisco, Consumer Health “Investing in Innovative Products for Healthy Living,” and the return of two panels from former RESI events, Asia-Pacific Investors, “Forging Cross-Border Collaborations in Healthcare,” and Orphan & Rare Disease Investors, “Seeking Returns On Investing In Small Patient Populations”.

The fundraising process is typically a lengthy one, therefore multiple interactions with prospective investors and strategic partners are essential to a successful campaign. The RESI conference is an ongoing series that provides just that, allowing entrepreneurs to interface with a diverse field of investors, foster existing relationships and make new connections throughout the year, at multiple events. RESI San Francisco is just the first stop for 2016, with additional RESI conferences being held in Houston, Toronto and Boston, later in the year.

This ongoing chain of conferences coupled with the forward-looking investor mandate information used in our partnering platform really makes RESI stand out in terms of the ability to make meaningful connections. To see a demonstration of just how effective the partnering system can be at finding a match, please watch this video.