Following the overview of the fundraising process inChapter 12, we get into some of the nitty-gritty areas and explore a few common pitfalls and how to avoid them. Chapter 13 discusses the importance of getting on the road or hitting the phone to engage with relevant investors, and why it’s important to ensure that all the investor prospects you speak with are kept in context regarding the deal. Finally, the chapter explores how to prioritize your prospects to use your runway time most effectively while raising money.
A laboratory science and services company makes venture investments in early stage companies that could enrich the firm’s future pipelines, as well as connect with more mature companies that may be targets for M&A. For venture rounds, the firm co-invests with other venture firms and will typically contribute in the range of $2-5 M for Series A, and $5-6 M for Series B and/or C. Overall, the firm will contribute $10-15 M throughout the lifetime of the investment. The firm typically makes around 2 investments per year.
The firm looks for opportunities related to research tools, diagnostics, centralized labs, and CROs that address the areas of toxicology, forensics, food and supplement testing, biopharmaceutical services, and molecular diagnostics. Some particular indications of interest are hematology, oncology, pain management, cardiology, and behavioral health. The firm is also interested in opportunities related to animal health.
The firm looks for an established management team and defined strategic plan for their raised capital. For venture investments, there should be pre-clinical data or prototypes available. If the company is a university spin-out, there should be some data acquired outside the academic setting already.
If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com
A healthcare focused venture capital firm based in China, with offices in Shanghai and Beijing, makes venture investments in early and growth stage companies and occasionally invests in PIPE deals. The firm recently raised a USD 300 million fund in 2014. The firm is flexible regarding the investment size; the firm can invest anywhere from several hundred thousand dollars up to USD 10 million or more. The firm generally invests in Chinese companies but will look at opportunities from around the world. The firm is actively seeking new investment opportunities.
The firm invests opportunistically in the life sciences. The firm is interested in biopharmaceuticals, medical devices, diagnostics, and mobile/digital health. For therapeutics, the firm considers all molecules and biologics, including biosimiliars and reformulated drugs. In terms of stage of development, the firm looks for products in early to late stages of clinical trials. For medical devices, the firm considers all classes of devices and generally looks for devices in later stages of development or close to market.
The firm invests in both private and public companies.
If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com
The venture and expansion capital arm of a US-based wealth management firm is investing from a 2014-vintage fund, and has around $270 million in total assets under management. The firm is current seeking new opportunities in the healthcare space. The firm’s initial equity investment range from $3-7 million, but are typically $12-$15 million total through subsequent rounds. The firm will only consider investment into US based firms.
The firm is currently most interested in the healthcare IT companies, but will also make select investments into later-stage medtech and diagnostic technologies that have no regulatory or reimbursement risk and proven commercial traction.
The firm generally invests in series A, B and C rounds. For HCIT businesses, the firm typically looks for companies with $3 million or more of revenue. As for medtech and diagnostics, the firm is opportunistic given the technology is post-approval and reimbursement.
If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com
A Venture Capital company founded in 2006 is currently making investments out of its 2nd fund that had its first close in 2013. The firm makes primarily equity investment into seed and early stage rounds ranging from $500,000 to $1 million initially and up to $1.5 million over the lifetime of the investment. The firm is focused on companies located in the Southwestern United States although they are open to review companies from throughout the US. The firm could make as many as 3 new investments over the next 6-9 months.
The firm is looking for companies in sectors of Therapeutics, Diagnostics, Medical Devices, Life Science Tools and Healthcare IT. The firm is agnostic in terms of subsectors and indications within these areas and is also interested in orphan indications and wireless medical devices. The firm looks to invest in very early pre-clinical stage companies and prefers to see some supporting in-animal data, although it is not a requirement.
The firm is looking for privately held companies with experienced management teams. The firm looks to play an active role as an investor and generally looks to take a board or board observer seat following investment.
If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com
After the huge success of RESI Boston, which attracted over 700 attendees for an unprecedented number of face to face meetings, it’s time to look ahead to this winter’s conference season. RESI will be joining the JPM fray for our largest event yet. The 11th Redefining Early Stage Investments (RESI) Conference will take place on January 10th in San Francisco.
2016 has seen a grand RESI tour, beginning with a sellout event in San Francisco, then to Houston, and up to Toronto for our first international RESI event, and home to Boston in the fall. For 2017 we’ll once again open the year with a splash in San Francisco. With other events focusing on late stage or publicly traded companies, RESI San Francisco will offer early stage companies and investors an opportunity to get the most out of the wild week when the biotech and medtech world gathers by the Bay. As RESI SF is highly likely to hit capacity again, we encourage you to register early.
RESI is a venue for entrepreneurs to meet with 10 categories of investors that LSN tracks including Family Offices, Corporate Venture Funds, Angel Groups, Venture Philanthropy, Venture Capital and more. Through the RESI Partnering, fundraising executives can have up to 16 scheduled meetings as well as many more ad-hoc meetings with diverse life science investors who fit their company’s technology sector, indication and stage of development. Additionally, through an expansive series of panels and workshops, attendees will have the chance to hear firsthand accounts from investors explaining their current investment mandates and process for identifying and qualifying candidates.
By Shaoyu Chang, MD, MPH, Senior Research Manager & Asia Business Development Liaison, LSN
On September 13, a record number of 700 entrepreneurs and investors entered the exhibition hall at Westin Copley Place, Boston, MA. They were greeted by 30 Innovation Challenge finalists—companies from the biopharma, biotech, medical device, diagnostics, and digital health sectors. The teams were screened and selected from over a hundred applicants; all were very strong competitors, but only one winner could emerge from the all-day exhibition-style contest!
First Place: BioMedomics, Inc. (Durham, NC, USA)
BioMedomics, Inc. is a point-of-care (POC) diagnostics company focused on unique, disease-specific tests and highly advanced quantitative detection platforms. BioMedomics has successfully developed and marketed 3 novel tests for hemoglobinopathies: Sickle SCAN®, alpha-Thal SCAN®, and Hemo SCAN®. We also recently received regulatory approval, and are working towards product launch for a novel POC quantitative test for hemoglobin S (HbS) which is used in the treatment of Sickle Cell Disease. Additionally, quantitative POC tests for TSH, testosterone, vitamin D and troponin based on our patented high sensitivity Time Resolved diagnostics platform and a rapid POC test for beta-thalassemia, are also under development.
Frank Wang, PhD, CEO, BioMedomics
Second Place: Epitel (Salt Lake City, UT, USA)
Epitel develops wireless transmitter and data logging systems for both pre-clinical animal models of human disease and validated clinical wearables. Epitel currently sells its EpochTM wireless biopotential monitoring system for rodents through a network of research product resellers. Epitel spun out of the University of Utah to develop medical devices based on its patented miniature wireless technology. This technology enables very low power transmission of biopotentials which translates to discrete wearables. Epitel’s clinical market is long-term monitoring of EEG with discreet wearables focusing on seizure counting in epilepsy and sleep quality monitoring for sleep disorders and sleep health. Epitel’s team includes biomedical, electrical, and regulatory engineers with experience in the healthcare industry, as well as business and healthcare advisors.
Michael Quigley, VP of Market Research, Life Science Nation | Jean Marie Wheeler, Regulatory Science and Engineering, Epitel | Mark Lehmkuhle, CEO,CTO, Epitel
Third Place: Novoron Bioscience, Inc. (San Diego, CA, USA)
Novoron Bioscience, Inc., is a pre-clinical stage biotech startup committed to developing the first ever neuro-regenerative therapies. The mechanistic foundation of our therapeutic platform has been shown to be effective at regenerating multiple cell types in the central nervous system, and we are currently developing our lead biologic molecule for multiple sclerosis (MS) and spinal cord injury. To date we have raised $1.25 MM in non-dilutive funds and are currently looking to raise $2.5 MM to complete lead optimization for our MS indication. Novoron has assembled a strong team consisting of the inventors of the technology, experienced biotech executives, and renowned clinicians and researchers that will be able to successfully develop our novel therapeutic platform into a neuro-regenerative human drug.
Michael Quigley, VP of Market Research, Life Science Nation | Dr. Travis Stiles, CEO & President, Novoron Bioscience
Thank you to all who competed in RESI X Innovation Challenge, and to all the RESI attendees who took part by investing their votes in their favorite competing companies. If you’d like to be part of the RESI San Francisco Innovation Challenge, apply now.
