Next Phase Newsletter

By Shaoyu Chang, MD, MPH,  Senior Research Analyst, LSN

Angel investors are some of the earliest and most important allies for entrepreneurs. They supply early stage companies with the much needed capital along with their sector expertise, business acumen, and professional network.

We have seen a growing trend of angels syndicating and participating in larger deals. Angel investment round sizes increased sharply in 2014. The healthcare sector showed the largest growth, where the median angel round reached $2 million, up from $1.57 million in 2013. However each angel group comes with unique membership composition, professional knowledge, and investment focus. It is an often daunting task for a scientist entrepreneur to identify and build relationship with the right angel who will move their new ideas forward.

LSN have gathered the most prominent angel groups in life sciences for two panel sessions to be held simultaneously at RESI Boston: Biotech Angels and Medtech Angels.

The Biotech Angels Panel will be focused on current trends in angel investment in the biopharmaceutical field. The panel will be moderated by Pravin Chaturvedi from TIE Angels, and will hear from:

• Jennifer Seibert, CEO, GAP Ventures
• Mic Williams, President, Boston Harbor Angels
• Richard Anders, Co-Managing Director at Mass Medical Angels
• Jeffrey Arnold, Member, Boston Harbor Angels & Mass Medical Angels

The Medtech Angels Panel will discuss trends in angel investment in medical technologies including devices, diagnostics, and smart devices. The panel will be moderated by Steve Goodman, Co-Founder at Mid Atlantic Bio Angels, and will hear from:

• David Verrill, Founder & Managing Director, Hub Angels Investment Group
• Michael Harsh, Limited Partner, Golden Angels Investors
• Patricia Gray, Member, Mass Medical Angels
• Richard Yules, Vice President, New World Angels

These sessions will help scientist entrepreneurs to better understand the perspective of an angel. What types of deals are most attractive to each angel? Who is the right group for my technology and how to initiate a dialogue with them? What to expect in the due diligence process? For early stage entrepreneurs considering angel capital, this is an excellent opportunity to meet them face-to-face.

By Shaoyu Chang, MD, MPH,  Senior Research Analyst, LSN

Life Science Nation unveiled the finalists that were hand-picked to enter the RESI Boston Innovation Challenge: an exciting group of innovative life science companies in therapeutics, diagnostics, medical devices, and healthcare information technology (HC IT).

As RESI returns to the Boston-Cambridge life science hub, the Innovation Challenge has received unprecedented amount of interest. The RESI scientific team has gone through rigorous review and independently hand-picked top companies, who will showcase their innovations in the RESI exhibition hall.

Many of the selected companies emerged from top-tier universities, have obtained initial validation through government grants or nonprofit organizations, have established external collaborations, and are on the path to commercializing their research and technology. “The RESI Challenge is shaping up to be one of the best group of innovators with the latest technology across the health care domain,” says Dennis Ford, LSN’s CEO.

RESI Boston Innovation Challenge features a diverse mix of technology sectors. Biopharmaceutical startups make up the largest sector. These companies leverage advanced cell therapy, novel molecules, and untapped pathways to combat cancer, immune disorders and infectious diseases. The competition also features advanced diagnostic, medical device and HC IT technologies, from novel molecular tracers that monitor T cells in immunotherapy, to analytical software that improves magnetic resonance imaging.

“RESI has become a beacon that attracts scientist entrepreneurs to showcase their latest products and services to global early stage life science investors,” says Dennis. LSN expects over 200 investors at RESI Boston. “Investors use this vehicle to keep abreast of the latest technology and teams that are surfacing in the life science arena.”

The companies will be given a presentation space in the RESI exhibition hall, where they will be able to engage in in-depth, face-to-face conversation with investors and strategic partners throughout the one-day event. All conference attendees will be given “RESI Cash” to invest in the most attractive companies in their mind. At the end of the conference, the top three companies receiving the most RESI Cash will be announced winners of RESI Innovation Challenge.

The full list of RESI Innovation Challenge companies can be found below.

By Michael Quigley, Director of Research, LSN

Venture philanthropy has become an increasingly significant source of capital for the earliest stages of company development in the life science space. Often looking to help bridge the gap between angel and venture capital financing, these groups have improved patient outcomes as their bottom line and look to use their financial returns from investments to improve that metric further. Financing is far from the only thing venture philanthropy groups can bring to an early stage company; they can often supply access to patients and experts in their field, access to tissue banks, and connections to donors.

At RESI in Boston this Sept. 16^th we will be bringing together 5 experts in the venture philanthropy space to discuss the various ways that they can work with and help early stage life science companies.

In a panel moderated by Chris de Souza, Director of Broadview Ventures, the audience will hear from:

• David Sandak, VP of Strategy and Research, Accelerate Brain Cancer Cure
• Daniel Smith, President, Autism Speaks
• Jit Patel, VP of Research and Business Development, JDRF [Juvenile Diabetes Research Foundation]
• Usha Arunachalam, VP Business Development for Research, Leukemia & Lymphoma Society

If venture philanthropy investment is part of the plan to get your company funded or to its next inflection point, this panel presents a great opportunity to broaden your network while expanding your understanding of these organizations.

By Michael Quigley, Director of Research, LSN

The RESI Conference was built on helping fundraising entrepreneurs connect with a diverse set of early stage healthcare investors, and with 200 anticipated investors, our next RESI in Boston this September 16^th is no exception. Figure 1 below breaks down the types of investors that are currently attending the conference.

Figure 1 | as of August 13, 2015

While Venture Capital does represent the single largest group in attendance, the remaining 77% of investor groups belong to Family Offices, Large Pharma/Medtech, Corporate Venture Capital, Venture Philanthropy, Angel, and Private Equity Investors. As many venture capital firms have moved to later stage, more risk averse investments or have adopted a company building strategy, many of the entrepreneurs we work and interact with are getting more traction with investors outside of the traditional venture capital investor class. There are still many venture capitalists who are active in the space; however, in today’s competitive fundraising environment it is highly beneficial to target all relevant investor types, and RESI allows entrepreneurs to do just that.

Due to the work done by LSN’s dedicated investor research team, we also have visibility into the types of companies that these investors will be looking for at the event. (As many investors are interested in multiple sectors, the percentages are over 100%.)

Figure 2 | as of August 13, 2015

As can be seen above, RESI will provide an opportunity for companies across the early stage healthcare spectrum to meet with relevant investors. It is this diversity of investors attending paired with the forward-looking investor mandate information used in our partnering platform that really makes RESI stand out in terms of being able to book meaningful meetings. With partnering going live on Monday, the best time to register for the event is now before any investor meetings get booked. To see a demonstration of just how effective the partnering system can be at finding a match, please check out this video.

By Shaoyu Chang, MD, MPH,  Senior Research Analyst, LSN

Corporate venture capital (CVC) funds are playing an increasingly important role in the early stage ecosystem and now are participating in one out of every five VC deals in the US. Almost all major pharmaceutical companies have now established CVC funds; meanwhile giants from other industries are exploring the life sciences horizon through their CVC arms.

Moderated by Donnie Mcgrath, VP of Business Development, Bristol Myers Squibb, this panel will feature:

• Mark Powers, CFO, Integrium
• Martin Heidecker, Director and Investment Manager, Boehringer Ingelheim Venture Fund
• Ann DeWitt, Senior Director, Sanofi-Genzyme BioVentures
• Ed Hu, Chief Financial Officer & Chief Investment Officer, Wuxi Venture Partners

What technologies are on CVC managers’ dreamlist? What are their key motivators and strategies? How should entrepreneurs start a dialogue with them? Experts from five prominent CVC funds will get together on the Corporate Venture Capital panel at RESI and speak their minds on these questions. You may have read our tips on partnering with CVC funds; RESI Boston will be a unique opportunity to meet them face-to-face.