Tag Archives: biotech companies

Hot Investor Mandate 3: Venture Capital Firm with Strong Connections to China Seeks to Invest in Global, Early-Stage Biotech Companies with Opportunistic Outlook

21 Jun

A venture capital firm founded in 2014 has an office in the West Coast with its parent company based in Hangzhou, China. The firm currently has invested in over 39 companies across a wide variety of sectors including biotech, IoT, AI, etc. The firm’s strong connection with Chinese partners enables the firm to support companies with market entry in China. The firm is currently allocating out of its first fund of $20M and prefers to participate in seed/pre-series A financing rounds with check sizes of no larger than $500K.

The firm is currently raising a second fund with a target size of $50M, through which the firm hopes to invest more capital in later rounds (i.e. Series A to B) and provide follow on investments to portfolio companies. Through the second fund, the firm is also seeking to expand their interests in diagnostics, digital health, and novel therapeutics. Early in 2018, the firm has launched an accelerator program to support the growth of early-stage companies in the sectors mentioned above and provide these companies with valuable resources. The firm seeks investment opportunities globally.

The firm is opportunistic and will seek companies in all parts of the life sciences space: therapeutics, medical devices, diagnostics, healthcare IT, etc. The firm has not invested in therapeutic products so far but is actively seeking new opportunities in the biopharma space, focusing on pre-clinical to phase I assets. The firm focuses on early-stage deals and will consider pre-FDA device products. The firm is open to companies developing products in all indications.

The firm seeks to work with privately owned companies with experienced management teams with a track record of success. The firm likes to see companies with intentions of entering the China market as the firm has a network of resources to support this, but this is not a requirement. The firm generally acts as the co-investor in financing rounds.

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: Venture Arm of Large Korean Corporate Invests in Digital Health, with Increased Interests in Investment Opportunities in Biotech Therapeutics

3 May

A venture capital arm of a large Korean corporate has several offices in the USA. The firm has approximately has invested over $200M in 40 companies in the last year and invested $100M in 20 companies in 2016. The investment size greatly varies, depending on the opportunity. The firm is actively seeking new investment opportunities in the life sciences and will look globally.

The firm invests in customer-centered health strategies, which may include mobile health IT, digital health, and artificial intelligence applied to healthcare. The firm is also interested in therapeutics, particularly synthetic biology, nanotechnology, and gene therapy. The firm is opportunistic in terms of stage of development.

The firm primarily invests in life science companies with a strong and experienced management team. The firm usually takes a board seat.

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

CRO Trends in 2014

5 Dec

By Alejandro Zamorano, VP of Business Development, LSN

As we round out the final quarter of 2013, LSN looks towards the new year and what it holds for CROs (Contract Research Organizations) within the life sciences. LSN maintains regular dialogue with a broad spectrum of CROs – from top-tier full service organizations, to small niche-specialized research companies. Based on our market insight, here are the top behavior trends among CROs for 2013 as we continue to see strong growth in this critically important sector of our industry:

The Death of the Passive Business Development

The CRO space has become increasingly crowded over the past year, and with mounting pressure on biotech companies to achieve capital efficiency, the market is becoming increasingly competitive. CROs that rely on inbound leads and recurring revenues from longstanding partners will face serious challenges in an environment where only the hunters survive. Those organizations that iterate their business development tactics will be the winners, and outbound sales will rule the day. As the industry matures, we will begin to see more sophisticated marketing campaigns as sales organizations adapt to the new market dynamic.

Developing Therapeutics

Tempted by the success of their clients, and a wealth of in-house expertise, a handful of CROs are starting to leverage their proprietary technology platforms in the hopes of developing their own novel assets. This will cause a shift within the industry as the lines start to blur between a CRO and a biotech company. The biggest obstacle to success in 2014 will be the ability to raise the necessary funds needed to shepherd the asset through clinical development, especially when the focus of management will be split. However, considering the fact that CROs already have revenues from the service side of the business, they may require less outside capital for asset developments, making for an enticing investment opportunity.

Consolidation

Private equity groups are becoming a major play in the CRO space, providing much-needed capital for growth. Many of the PE players in the space are purchasing and consolidating mid-level players to create economies of scale and synergies of business. Buyouts will certainly provide some liquidity events, but more importantly, consolidation will be an important counterbalance to the growing number of CROs. Moreover, as private equity groups create more efficient players via M&A activity, the pressure is on for smaller players to stay competitive.

Investor Partnerships

Today, the growing trend among service providers is to team up with well-known investors that have a continuing demand for certain basic services such as clinical development and contract manufacturing. By building these alliances and by outlining a discounted rate, CROs can create a consistent supply of customers by providing investors with a price break. This is a win-win in both situations, where investors get increased control and cost efficiency for their portfolios, while CROs gain a powerful dealflow engine.

Investment Activity

LSN recently covered the trend of CROs making direct investments into life science companies. This trend is also likely to accelerate as CROs take advantage of the opportunity presented by early stage companies strapped for cash in the form of services-for-equity arrangements, or outright corporate venture activity.

2014 will be an interesting year for CROs, as the increasing competitive nature of the industry will leave only the most innovate companies to enjoy market growth. Be sure to stay tuned as LSN continues to track the key market dynamics affecting service providers going forward.

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