Tag Archives: corporate venture capital arm

Hot Life Science Investor Mandate 2: Corporate Venture Arm Looks for Companies Intersecting Life, Materials Sciences

9 Jan

Allocation Information

The corporate venture capital arm of a global science-based company active in health, nutrition and materials seeks to make equity investments into seed and venture stage companies generally taking less than 25% ownership. The firm makes allocations ranging from a few hundred thousand dollars to $5 million initially with additional capital held for future financing rounds. The firm is looking make approximately 5-10 investments over the next 6-9 months with +10 being made over the next 2 years. The firm invests in companies located around the globe with a focus on the U.S., Europe and Isreal.

Sector and Subsectors of Interest

The group is looking for companies in the intersection of Life and Materials Sciences. These includes companies developing devices and materials targeting indications of cardiovascular, orthopedics, ophthalmology, dental, drug delivery and next generation cellular therapy. The firm is also interested in companies in the Agbio and nutraceutical spaces. While the firm has invested in companies all the way from seed to 3-month pre-IPO, they generally invest into companies that do not yet have a product on the market.

Company and Management Team Requirements

The group highly values experience in a firms management team and generally looks to take a board seat and play an active role in its portfolio companies. The firm is looking for companies that are in cooperation/alignment with relevant core businesses of the parent company.

Hot Life Science Investor Mandate 1: Corporate Venture Capital Arm Leverages Preclinical Services in Exchange for Equity

5 Dec

The corporate venture capital arm of a larger firm based in the Eastern US makes equity investments in early stage life science companies through its network of high net worth individuals, and typically invests between $500,000 to $1 million. The firm also looks to leverage its affiliate company’s array of preclinical services to its portfolio companies in exchange for equity. The firm looks to invest in companies located throughout the U.S., and plans to make 2-3 allocations over the next 6-9 months.

The corporate venture capital is currently looking for companies developing therapeutics, and considers both small molecules and biologics. The firm is open to most indications, but is generally not interested in companies in the cardiovascular, CNS, glioblastoma and pancreatic cancer spaces. The firm is very interested in other areas of oncology as well as ocular and dermal indications, areas in which the firm’s affiliated labs have highly specialized technology that can add value. The firm is looking for companies that are 3-6 months pre-IND enabling phase. The firm is not interested in allocating to companies that are in the lead optimization phase, as they cannot leverage preclinical services to benefit the company.

The CVC generally does not lead investment rounds and acts as a co-investor, but will look to take either a board or board observer seat into companies.

Hot Life Science Investor Mandate 1: CRO’s Corporate Venture Arm Leverages Services for Equity

6 Nov

The corporate venture capital arm of a global contract research organization (CRO) has the ability to allocate anywhere from $100,000 to $2 million of equity capital to companies. However, the arm only invests in opportunities where it can leverage its CRO services as a piece of the investment, and as such, looks to tailor its CRO services to the needs of its partners, helping them to reach key value-added milestones. The firm will consider opportunities worldwide, and plans to be involved with 6-10 companies over the next 6-9 months.

The corporate VC is willing to consider making investments into companies developing medical devices, diagnostics, and therapeutics that are able to utilize their parent company’s CRO services to advance their product into or through clinical trials. Currently, they are most interested in companies developing therapeutics and biologics with a lead asset anywhere from 6-9 months pre-IND, to Phase III of clinical trials. The arm is completely opportunistic in terms of subsector and indication, and is willing to consider companies targeting orphan indications.

The corporate VC often acts as a co-investor, and generally does not require a board seat. Despite not being active on the board, the firm is a long-term investor and looks to provide market, development, and regulatory insight and strategic advice into selected companies.

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