Tag Archives: Fundraising

Global Funding Insights for Digital Health Initiatives in 2018

12 Jul

By Ashley Durrer, Marketing Manager, LSN

This week I interviewed Colin Widen, the CEO of Boston Innovation Capital (BIC), Life Science Nation’s (LSN) wholly-owned broker-dealer arm, to learn where investors are allocating funds, and the current focus on healthcare advancement within the digital health space.

BIC works alongside LSN and our network of investors to support early-stage companies in forging connections with investors, major pharma firms, and other strategic players in the life science world. By managing clients’ fundraising campaigns and connecting them to investors who are a good fit, BIC is able to address its, and LSN’s, mission of advancing new and innovative technologies to the clinic.

Interview with Colin Widen moderated by Ashley Durrer

AD: With billions of dollars being poured into digital health, why the sudden increase?

CW: “Healthcare needs to find a way to pay for digital health now that value-based care and hospital incentives are aligned to support lower costs in healthcare with improved patient care. There are new potentials for change within the telemedicine space in light of ongoing healthcare reforms and debate.”

AD: How will that turn out for those seeking funding?

CW: “Digital health initiatives will be the least impacted by changes to the American healthcare system, making them prime opportunities for investment this year.

“There is a much lower cost to creating software, virtual platforms, compliance tools, etc. than creating advances in biologics, drugs, and other life science advancements, making digital health an increasingly popular space for investors. Successfully investing in therapeutics or medical devices requires a great deal of expertise, not to mention the increased risk due to the potential failure in clinical trials. On the other hand, software is a recognizable, lower cost, and scalable business model that is often also easily adaptable when regulations change.”

AD: Where does BIC fit into global funding from client perspectives?

CW: “BIC is working tirelessly to support digital health technologies that will have a real impact on the healthcare system for our doctors, nurses, and hospitals. This year BIC is focused on digital health technologies, assets, and virtual tools, which can support doctors’, hospitals’, and nurses’ efforts with patients. However, this currently excludes consumer-based products and electronic medical record (EMR) initiatives.”

AD: What are some examples of potential best-fit clients?

CW: “Some examples recognized in the market are pill dispensers and medicinal tracking for patient compliance, health portals for patients and doctors, mental health apps, medication tracking, patient monitoring and more.”

AD: What kind of client are you seeking now? Can you share a potential client profile?

CW: “Within our LSN network of investors, feedback clearly shows there is an increasing appetite to invest in niche digital health opportunities.

“Investors are seeking companies within the top-tier of their specialization, and a proven business model within the market. Often these investors want to see that the product, software, tool, etc. are viable, which means it’s already being used within the market e.g. hospitals. This also includes an accompanying value proposition for payors and the company is receiving ongoing revenue for that service.”

BIC Global Network of Digital Health Investors are focused on:

  • Funding of $10M-50M
  • Min $3mm+ ARR
  • Niche companies within the top-tier of their specialization
  • Currently avoiding pure EMR focused and consumer-based products

The Future of Digital Health

There are innovations happening every day to help improve access to healthcare. 2018 has already seen an increase in the debate over healthcare reform, rising insurance costs, and uncertainty of coverage for millions of Americans. Advancements in technologies and virtual tools for doctors and hospitals could really help to streamline processes and reduce overall costs for themselves as well as the patients they serve.

We can’t wait to hear what new innovations are entering the digital health space.

About Colin Widen, CEO

Colin Widen, registered representative, is a seasoned executive with 25 years of sales, trading and portfolio management experience in major investment banks. Colin joined Deutsche Bank where he led a team providing consulting services about alternative asset allocation strategies to family offices and smaller endowments and foundations. In creating BIC, Colin has combined investment skills with the robust investor network of LSN to offer a unique platform. Colin is a registered representative and holds Series 7, 24, 63 and 82 registrations. His specialties include reconstructing hedge fund portfolios. analyzing private equity holdings and helping with strategy and execution of capital raise initiatives across the spectrum of today’s life science assets.

About Boston Innovation Capital

Boston Innovation Capital (BIC), a wholly owned subsidiary of Life Science Nation Holdings, became a FINRA-registered broker-dealer in 2016. BIC works alongside LSN’s other two divisions (LSN’s Investor Platform and Company Platform, and the RESI Conference Group) to support early-stage companies in forging connections with investors, major pharma firms and other strategic players in the life science world.

Marketing Collateral for Your Fundraising Strategy

5 Jul

By Dennis Ford, Founder & CEO, Life Science Nation; Creator of RESI Conference Series & RESI Healthtech Week

If you haven’t heard, Life Science Nation provides consulting services for branding and messaging, both critical to the fundraising process. The LSN mantra is, “We echo to our clients what the investors tell us they want to see”. Through conversations with investors through the years, LSN has the knowledge to help shape your marketing collateral to address what investors are looking for, whether you meet during a RESI Conference or on your own time.

Top Three Pieces of Marketing Collateral You Need

There are three key marketing documents investors generally evaluate to form a first impression of your company: the executive summary, pitch deck, and company website. These three pieces of content have one purpose: they serve to whet the target investor/partner’s appetite and convince them to request a meeting with you and start a dialogue. Below is a list of all supporting marketing collateral you may need for your fundraising campaign. This article will go into further detail on the executive summary, pitch deck, and website and what the content should highlight.

Marketing collateral every entrepreneur needs.

If you are looking for more detailed information on defining and developing your marketing collateral, please read Chapter 6 of Dennis Ford’s book, “The Life Science Executive’s Fundraising Manifesto“.

What “value” does your business add?

One key takeaway from all your marketing collateral should be the value of your company and its technology. Investors want to easily understand your message and value-add right away, no matter what the marketing collateral. Investors tend to be very busy, but if you can pique their initial interest, you will have plenty of opportunity to provide more information as the dialogue unfolds. The investor does not want to have difficulty understanding your company value so make sure you have a clear message for them.

There is no standardization.

Many of our clients go through a learning curve due to the lack of standardization of the fundraising collateral (executive summary etc.) required by investors. This makes it extremely difficult to provide a course on the basics of fundraising branding and messaging. This has led to the service we provide, creating custom marketing collateral.

An investor can receive as many as 100 solicitations per week. Investors have become experts at skimming and looking for a spark to ignite their interest. If that is not found, they quickly move on to the next opportunity.

How to get started.

An executive summary (ES) is typically no more than 2 pages and can be accompanied by a visual PowerPoint (your pitch deck) of 10-12 slides. Usually, they are sent together when you reach out for an initial introduction as it provides the investor with key background information upfront. The goal is to move them from either document to your website for more detailed content.

Here are five main points we have learned regarding the ES and pitch deck.

  1. Send both an executive summary and a pitch deck. Some folks click on an executive summary and others click on the deck. Most investors have an innate preference for one or the other. Since you won’t know before reaching out, LSN recommends that you send out both.
  2. The executive summary is the story of your company and how you got to your current state.
  3. The pitch deck should reflect what is in the executive summary, but in bullet form, with the addition of more information that shows the value-add of your firm and product.
  4. The pitch deck is your tool to present your company position to investors, therefore replacing your voice. It needs to stand completely on its own because it is read in your absence. Unlike a standard deck used for a presentation with bullets designed to trigger your dialogue, the pitch is being read as it is. The challenge is to be able to deliver the complete message with as few, concise words as possible and no need for a presenter.
  5. Remember, it’s the investor’s first introduction to your company. The investor will not have the full context, and therefore some level of contextual detail may be necessary.

Your website represents your company brand.

Your company website is a detailed representation explaining your company and its technology. It needs to offer a “deep dive” on the company and team, more detailed than is possible in your executive summary and pitch deck. The website should provide all of the detail and context that tell the full story of your company and its value. Even so, it is necessary to maintain consistency with your language and provide a clear message.

If done right and the message comes across, then the target partner will be able to assess that you’re a good fit and decide to initiate a conversation. The executive summary, the pitch deck and the website are all created for one reason – to give enough compelling information that an investor decides to initiate the first meeting.

Remember, it’s about the buyer: a busy investor with cash to allocate. Keep in mind they will do a quick scan of your deck and executive summary. They will be looking for something that will impart enough interest that they will want to have a chat with you and your firm.

 

Foundations as Investors

5 Jul

By Karen Deyo, Investor Research Analyst, LSN

Life Science Nation knows summertime can be a lull for fundraising, with many investors out of the office. This can make it more challenging and extend a fundraising campaign. LSN spoke with one of the investors attending and speaking at the RESI Healthtech Week this fall, asking him to share his insights into an often-overlooked resource in the fundraising process—foundations as investors.

Jim Golubieski, President of New Jersey Health Foundation and its affiliate, Foundation Venture Capital Group, LLC, will be speaking on the “Foundations” panel, sharing his insights and experience. It will discuss non-profit organizations that provide support and funding to early-stage startups.

Below are the answers to two questions asked by Life Science Nation.

What will RESI attendees learn from you?

Jim: “The most important takeaway from my session would be for attendees to know that many foundations and other not-for-profit organizations are no longer simply fundraising organizations but can also be great sources of capital funding that might be overlooked. It is also important to explore all avenues when seeking funding – attendees should research individual foundations to see what types of organizations and projects they fund, to explore if their missions and goals are compatible with their own.”

What makes you excited to attend RESI?

Jim: “From a strategic perspective, attending RESI means that all the components needed for early-stage investment opportunities are under one roof, in one place at one time, to meet with and explore the entire funding cycle. The opportunity to talk with our colleagues—investors, CEOs, scientists, entrepreneurs and potential partners— is an exciting concept.”

The Foundations Panel will be held on Day 1 – First Coast Innovator’s Gathering
Wednesday, September 5th, 2018 at 2:00 PM – 2:50 PM

Panel topics to be discussed may include:

  • What is the foundation’s preferred stage of development when supporting companies?
  • How to approach foundations for fundraising.
  • What criteria do non-profits use to evaluate opportunities?
  • What are the differences between support from non-profit investors compared to for-profit investors?

When foundations support startups, it is with an eye to their mission as opposed to profit. These missions can range from regional development to advancement of a cure or treatments for a particular disease. Foundations play an important role in the fundraising landscape, often assisting companies to grow to the level required by more traditional investors. Panelists will discuss their approach to supporting early-stage companies and how these companies can benefit from a partnership with a foundation.

To learn more and to attend the panel, sign up for RESI Healthtech Week.

James M. Golubieski

James M. Golubieski is President of New Jersey Health Foundation and its affiliate, Foundation Venture Capital Group, LLC, a company that provides pre-seed funding to new health-related startup companies founded by New Jersey researchers to help them advance toward commercialization.

Mr. Golubieski works closely with the companies in which Foundation Venture has invested, sits on their Boards and provides guidance in helping them to develop their business models.

Previously he had been CFO of Array Medical, Inc., a medical device start-up company established in 1995 that developed a groundbreaking blood test to test platelet function. The company was sold in 1999. Mr. Golubieski was also the chief operating officer and senior executive vice president of Glendale National Bank and a member of its board of directors, president of Glendale Investment Corp. and Glendale Mortgage Services, Inc. and chief financial officer of Glendale Bancorp, which was acquired by Mellon Financial. For 10 years prior he had been with KPMG.

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