Tag Archives: equity investments

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 3: European PE Seeks Early-Stage Companies, Has Long Timeline to Exit

5 Dec

A private equity firm that was founded in 2001 and is based in Europe controls €550 million in assets under management across institutional and retail funds. The firm typically makes equity investments ranging from €1 to €20 million over the lifetime of the investment, and is also interested in the in-licensing of early stage assets. The firm has an 8-year period to exit, and plans to make 2-3 investments over the next 6-9 months. The firm invests in companies located throughout Europe with a focus on France.

The PE is currently most interested in companies developing Therapeutics and Medical Devices, and is also considering investments in Diagnostics. In the Therapeutics space the firm is open in terms of indication but has a preference for companies in immunotherapy, vaccines, and biologics subsectors though they are also open to small molecules. In the medical device space, the firm has a strong preference for investing in cardiovascular devices, but considers other opportunities as well. The firm looks to invest in very early stages of company development – generally when lead assets are preclinical and technologies are still in development.

This firm looks to make seed investments and in some cases be involved in the formulation of a company. The firm is not likely to invest in companies that have already received significant institutional financing and looks to lead investments rounds. The firm also participates in spin-offs from larger companies that are looking to sell non-strategic assets.

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