LSN Summer Reading Series Chapter 12: “Anatomy of an Allocation Process”

By Nono Hu, Director of Marketing, LSN

In recent weeks we’ve covered how to make a global target list of potential investors, and the basic techniques of phone canvassing and email outreach required to initiate dialogue. This week, LSN takes a look under the hood of the investment process. How do you turn that initial spark of interest into an allocation check?

This chapter explains how you can move the process forward through the pipeline and describes the people you’ll have to work with in order to make the allocation happen—from the initial gatekeepers to the final decision-makers. We look at how to make a good first impression and how to run a productive meeting with an investor, and explore what will happen during the due diligence process. If you’re preparing to meet with a potential investor in the near future, this chapter will be invaluable.

Click here to download/print the chapter PDF

Next week, join us for Chapter 13: “Straight Talk About Finding, Vetting, and Closing Capital.”

Enjoyed the preview? Buy now from Amazon.com or Barnes & Noble

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Hot Investor Mandate 1: Family Office Invests in Healthcare IT Opportunities

An evergreen private equity firm launched by a wealthy European family is headquartered in Paris, France with additional offices in China and the USA. The firm was created with an aim to invest in high growth opportunities in healthcare and multiple other sectors outside of retail. The firm typically makes minority investments of US$2-10 million in Series A and B rounds (either as lead or co-investor in a round), and is currently seeking new opportunities in France, United States, and China.

Within healthcare, the firm is interested in healthcare IT applications that improves quality or efficiency of care, such as telemedicine, patient-doctor interface workforce coordination, and analytics software. The firm prefers enterprise solutions, but can also consider consumer products. The firm is not interested in insurance, cosmetics, nutraceutical or well-being products. For hardware devices to be considered, it must have a strong software/data component as its core technology. The firm is agnostic to disease areas and is currently most interested in elderly care. The firm prefers to work with growth-stage companies that are revenue-generating.

The firm is looking for companies formed by a team of founders with expertise in the medical, technology, and sales and marketing sectors. One-person companies are less likely to be considered. The firm seeks teams that are able to work across cultures and grow into international markets. The firm is a long-term investor that works closely with its portfolio companies and strives to create a sharing culture together.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Investor Mandate 2: Venture Firm Seeks Connected and Wearable Devices in Cardio, Genetics and Mental Health

A venture capital firm based out of Palo Alto, California is investing from a fund closed in 2015. The firm is flexible in terms of capital structure and seeks to lead Series A rounds in the $2M to $20M range with appropriate reserves for follow-on rounds. The firm is seeking to make 3 new investments within the next year. The firm is actively looking to invest in private companies, and will consider companies anywhere in the United States, but strongly prefers companies to be nearby San Francisco, New York or Boston.

The firm is interested in Healthcare IT, Wearable Devices, and Integrated Medical Devices. The firm is not interested in stand-alone device companies, and is only interested in devices with a software component. The firm may be interested in technology with a mobile app component, though that is not their focus. The firm will look at 510K devices only, though has a preference for technology that does not require FDA approval. The firm looks for disruptive technologies past prototype stage; it is not necessary for the technology to have FDA approval, but it must have solid data that shows its ability to drive valuable clinical outcomes. The firm has active interest and more inclination towards: cardiovascular/hypertension, obesity and weight loss, mental health, genetics, and heart failure.

The firm looks to invest in companies that have experienced management teams. The firm looks to take a board seat and play an active role in its portfolio companies.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Investor Mandate 3: Private Wealth Fund Seeks Diagnostic, Biotech and Device Deals Worldwide

A venture fund formed by a group of high net-worth individuals in China has team members and portfolio companies located in Shanghai, Nanjing, Silicon Valley, and New York. The fund is currently seeking investment opportunities globally with a focus on China and the US. Projects based in Canada and the DACH region may also be considered.

The fund pays close attention to investment opportunities from seed and early stages to growth stage. For seed and early stage projects, the fund makes investments in convertible notes and equity and is flexible on investment size. For growth stage projects, the fund makes equity investments of US$1-5 million in businesses with valuation of up to US$18-20 million. Due to its evergreen fund structure, the fund takes a long-term approach to investment. The fund typically syndicates in a financing round and would like to partner with local co-investors in case of overseas investments.

The fund focuses on high-growth fields in biotech therapeutics, medical devices, digital health, and consumer products with an elevated interest in diagnostics. The firm is agnostic to disease areas. In diagnostics, the fund is interested in portable imaging devices, high-intensity ultrasound, point-of-care diagnostics, and molecular diagnostics. In digital health, the fund is interested in technologies that can be applicable to the Chinese market, such as connected devices, telemedicine, and patient-physician platforms. In consumer products, the fund in interested in OTC, nutrition and dietary supplements that have proven efficacy and are on market.

The fund is looking to work with serial entrepreneurs from seed and early stages to growth stage to form complete and strong teams. The fund typically cooperates with local co-investors who play a supervisory role in overseas operations.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Investor Mandate 4: Global Pharma Corporate VC Invests in Aesthetics and Anti-Aging Tech

A private specialty pharmaceutical company with offices all around the world has a venture fund that focuses on early stage companies.  The firm positions itself to be a strategic corporate partner to develop and support innovative technologies in the aesthetics and cosmetics space. The firm typically makes $1-$5 million investments. The firm is seeking 4-5 investments in early-stage companies, start-ups including spinout companies from academia. The firm is geographically agnostic, and is open to investments from all over the world.

The firm focuses only on aesthetics with an anti-aging focus, including skin rejuvenation, body shaping and modification. The firm is open to all therapeutics, medical devices, and healthcare IT, as long as the technology serves an unmet need/gap in the aesthetic marketplace. The firm historically invested in injectables, toxins, topicals, cosmetics, and devices. The firm typically looks at seed to early stage companies, and specifically focuses on pre-clinical to clinical stage technology with substantial data.

As a strategic corporate partner, the firm hopes to bring its own expertise and internal resources to the table. As not only an investor, but also as a strategic partner, the firm anticipates being able to offer advice, support, and consultation for the early-stage company to leverage its global comprehensive network of experts within the firm, and can offer R&D, clinical, regulatory through to commercial, sales and marketing expertise.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Redefining Early Stage Investments Conference Series – Boston 2016 Program Guide Announced

By Nono Hu, Director of Marketing, LSN

Next week, RESI is heading home for the 10th conference in Boston, where the LSN team hosted the very first RESI three years ago. So far, we have over 900 meetings booked through the RESI Partnering Platform, and have registered nearly 250 early stage investors.

LSN would like to present the RESI Boston 2016 Program Guide. If you’re planning your day in Boston and want to see full lists of the speakers, RESI Innovation Challenge participants, exhibitors and sponsors you could meet, look no further!

resi-boston-program-guide-09-08-2016

 

Hot Investor Mandate 1: Family Office Invests in Healthcare IT to Lower Cost of Care

A private investment firm based in New York, NY has launched a health technology fund to invest in early stage companies that are developing innovations that can significantly reduce healthcare costs. The firm makes equity investments where the investment size is highly variable depending on the stage of development and particular need of each company. The firm invests in companies that are based in the US and is actively seeking new investment opportunities.

The fund focuses on early-stage healthcare IT projects that could substantially lower the cost of healthcare delivery in the United States. Examples of good candidates include projects that help consumers make more informed decisions when selecting local service providers (cost transparency); use remote monitoring technology to help patients better manage illness; or provide more meaningful tracking of health metrics for patients (health and wellness analytics).

The firm is an active and engaged investor.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com