Hot Investor Mandate 2: Crossborder Firm Focuses New Fund On Healthcare IT Deals

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A firm with offices in the USA and Middle East has raised a new $50 million fund in 2016. The firm invests $500K to $2 million in late seed stage to Series A rounds, with reserves for follow on investment. The firm primarily invests in private Healthcare IT companies. Their target ownership level is 10-20%. The firm has a flexible capital structure, and is open to investing in the form of convertible notes, debts, or equity, and will consider investments across the globe.

The firm’s primary focus is on Healthcare IT companies; companies with an integrated medical device technology component will also be considered. However the firm prefers a strong focus on the software aspect, and looks for companies in which software is the proprietary technology. Historically the firm has invested in integrated devices such as diagnostics, sequencing, healthcare analytics, and tele-medicine. The firm is highly interested in investing in technologies that are beneficial to healthcare, to improve patient experiences, and reduce healthcare costs.

The firm looks to invest in companies with established and experienced teams. The firm prefers to work with companies that are experts in their respective area. 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: Pharma Firm Invests in Therapeutics in Oncology, Ophthalmology, and Nephrology from Preclinical Onwards

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A fully integrated public biopharmaceutical company with over 20 years’ operation in China’s pharmaceutical industry is interested in equity investments, in-licensing clinical stage assets for development, and will also consider collaborative R&D. Typical equity investments range from $2-3M per deal. The firm has partnered with companies in Japan, the US and Europe, and is currently looking for new opportunities globally with a focus on US and EU.

Currently, the firm is seeking therapeutics in oncology, ophthalmology, and nephrology. The firm is most interested in new formulation and is open to small molecule, biologics, biosimilar, and repurposed drugs. The firm currently focuses on assets in phase 2 clinical trials, but can consider assets from pre-clinical to on-market stages.

The firm is seeking innovative assets that address a large unmet medical need. When making an investment, the firm generally seeks development and/or commercialization rights in China and Southeast Asia.

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: VC Raises New Therapeutics Fund Targeting Clinical Stage Drugs

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A life science investment firm with offices in New York and San Francisco. The firm is currently making investments out of a new $250 million venture fund backed by strategic LPs, which closed in 2016. The firm typically makes investments ranging from $5-$20 million into selected companies, most commonly in the form of equity. The firm is open to companies globally.

The firm is looking to invest in the therapeutics space and is open to considering both small molecules and biologics. The firm is looking for companies in the clinical stage that are at least post proof-of-concept. The firm is generally open to all therapeutic subsectors and indications and is particularly interested in unmet needs.

The firm is looking for management teams with experience that are backed by strong science and a solid strategy. The firm looks to act as a hands-on investor, generally taking a board seat following investment.

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

Canadian Venture Investor Appetite

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By Cole Bunn, Senior Research Analyst, LSN

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As we are preparing for our first ex-U.S. RESI event, on June 23rd in collaboration with Johnson and Johnson Innovation (JLABS) at the MaRS Discovery District in Toronto, we wanted to take the pulse of the early-stage investment community in Canada by taking a look at some data from the LSN investor platform.

One thing that distinguishes Canada’s venture landscape from the U.S. and elsewhere is the high level of involvement from the Canadian government in the venture world. This is underscored by injections of capital into two separate fund of funds that will invest in several Canadian venture funds as well as venture funds in the U.S. which invest in Canadian companies.

The level of life science innovation in Canada, Toronto in particular, is impressive, with 50% of the country’s life science companies located there, among several other statistics that highlight the economic capabilities of the industry. Major investments in the Toronto Discovery District’s infrastructure from the private sector and the provincial government will also help bolster the early-stage life science ecosystem by adding to and improving the existing resources available to life science startups, including everything from hospital systems and access to patients to incubators and mentorship-type services.

Below is some data on the Canadian investment vehicles, from the LSN investor platform, with the majority of the funds being in $100M-$300M range, arguably the right size for a venture fund to produce the best returns.

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The Canadian investors we’ve spoken to have fairly evenly distributed interests, with the most widespread interest being in medical technology.

Another interesting feature of Canadian investors is that 56% of Canada’s therapeutic investors are interested in pre-clinical assets, and 57% of medical device/diagnostic investors will look as early as products in early development (that is, not yet in the clinic). This bodes well for the entrepreneurs working to commercialize technologies in this region, given that a large portion of the projects are early in their life-cycle.

It seems that Canadian investors recognize the vast amount of opportunity in their backyard, with nearly half of the Canadian investors in the LSN platform being focused solely on Canada.

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We’re excited to bring the RESI conference to Toronto and get a firsthand look at the innovation that is happening in this rapidly developing life science hub, as well as expose the technologies to a diverse group investors and strategic partners.

How Should Startups Navigate Healthcare Systems: Advice from Hospital Innovation Officers

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

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More and more healthcare institutions are opening their doors to innovation, eyeing on the opportunity to save costs, increase efficiency, and boost patient satisfaction. Partnership with large and reputable institutions can provide valuable, sometimes make-or-break, resources to startups such as patient data, pilot testing, clinician endorsement, and early validation.

However, unlike big vendors who easily know their way around large institutions, it is a daunting task for startup teams to navigate such massive healthcare institution as MD Anderson or Texas Children’s Hospital. How to engage large institutions? How to align incentives? Is there is a right time to start a dialogue? In the most recent RESI conference at TMCx accelerator on April 11, innovation officers from four top-tier medical centers gathered to shed some light on these questions.

Moderated by Rebecca Kaul, Chief Innovation Officer, MD Anderson, this session will feature:

Key takeaway points on this panel:

  • Finding the right champion for your technology.

Many startups get referred around an institution without building real relationships. Entrepreneurs need to find an insider who will endorse your product. Usually that person is not a C-level executive, but someone who has done research in your field and understands the value of your product. The initial buy-in is critical to get traction.

  • Understand each party’s incentive and set the right value proposition.

Academic institutions are motivated to adopt innovation that can help them serve their mission. But they are also concerned about liability and long-term maintenance costs. Startups need to lay out their added value in tangible, quantifiable measurements. For example, administrative products could offer efficiency gains, cost saving, or revenue gains; clinical products could demonstrate improved patient outcome, and clinician time saving; and patient engagement products could show impact patient on satisfaction scores.

  • Come in with a partnership mindset.

Healthcare institutions are willing to engage in dialogue with companies at all stages. However, there is a significant difference between a partnership discussion and a typical vendor-customer sale. Startups seeking a partnership need to clearly state what they are seeking from a healthcare system partner, whether it is data access, pilot testing, or clinical expertise. In return, startups also need to know what levers they are willing to pull, such as free use of the product, downstream royalty on the sales of the product, and equity in the company.

Hot Investor Mandate 1: Multinational Device Company Seeks PMA Devices & Remote Monitoring in Respiratory, Cardio and Orthopedics

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The healthcare subsidiary of a multinational conglomerate is seeking innovative medical technologies to strengthen its pipeline while expanding into new areas. The company is looking for in-licensing and collaborative R&D opportunities in the US, Canada, EU, and Israel.

The firm is seeking innovative medical device, diagnostic, and monitoring products to strengthen its pipeline in respiratory diseases, cardiovascular disease, and orthopedics. The firm is also interested in neurological disorders such as stroke and Parkinson’s disease, cancer, wound care, and rehabilitation for home care. The company is most interested in PMA therapeutic devices or remote monitoring devices in the homecare settings. The company prefers assets with initial patient data.

The firm is looking for assets that are compliment to its portfolio. The company prefers to own rights in the Japan market, while its partners can keep US or EU rights. The firm’s regulatory team, clinical team and support system can assist its partners with product registration and distribution in Japan.

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: Family Office Seeks Healthcare IT Companies in USA and Europe

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A family office based in New England manages over $1 billion in total assets, and is currently seeking to identify new investment opportunities in the life science space. The firm has no set time frame to make an allocation, however would invest in a firm within the next 3-6 months if a compelling opportunity was identified. Because the firm is backed by a single family and is not a typical fund that must go through the fundraising cycle, the firm has the ability to deploy capital as soon as an opportunity is sourced. The firm typically makes initial investments in the $500,000 to $1 million range although they are capable of providing more due do their funding structure and co-investor network. The firm is open to investing in companies that are based in either the US or Europe with a focus on companies based in the US.

The firm is currently most interested in companies operating in the healthcare IT space with little to no regulatory risk. The firm is willing to invest in seed and ventures stage companies often as a member of a syndicate of angels investors. For investments in medical technology or diagnostics, the firm would only participate as co-investor.

The firm prefers companies that have a pre-money valuation ranging from $3-5 million. The firm has a long-term investment horizon and likes to hold companies in their portfolio for much longer than a typical private equity firm.

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