Tag Archives: LSN

LSN Investor Database Feature: Non-VC Interest in Early Stage Biotech

12 Nov

By Max Klietmann, VP of Marketing, LSN

LSN’s investor research group maintains quarterly contact with over 5,000 active investors in the life science space. In recent history, LSN has focused on tracking the plethora of new investor categories entering the life science arena filling the void left by Venture Capital. In this edition of the LSN Newsletter, we will be taking a look at some interesting statistics surrounding the new investor categories LSN tracks, and their preferences within the early stage biotech space.

The chart below shows the results of an LSN Investor Database search mapping out all non-venture capital investors tracked by LSN with a declared interest – or mandate – in seed/venture stage therapeutic companies with an asset in Discovery, Lead Optimization, Preclinical or Phase I clinical trials. The result is 875 investors globally. The LSN Research Team uncovers 40-50 new investor mandates per week.

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One of the most interesting pieces of data gleaned from LSN’s analysis is the overwhelming number of investors with an opportunistic orientation towards early stage technologies (roughly 34% of investors). This shows that for many non-VC early stage investors, especially private equity, other factors are of primary interest (e.g. management team or therapeutic subsector).

When it comes to disease mandate-driven investors (i.e. investors driven by a specific indication) top indications of interest are generally aligned with major disease areas with significant market opportunity. These include cancer – (over 29%!), diseases of the nervous system (e.g. ALS, MS, Alzheimers), infectious diseases, cardiovascular disease and endocrine (diabetes).

So what’s the big deal? First of all – The data shows that non-VC investors are certainly showing interest in early stage biotech, which validates many of LSN’s anecdotal market insights. Second, it shows that even though about 34% of these investors are opportunistic, many have clear mandates in a space that is highly strapped for capital. If you’re looking to raise money, especially in one of the top therapeutic areas shown, these investors should certainly be on your radar. Stay tuned as LSN continues to offer insights on the changing investor landscape.

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Highlights from the Road: Hudson Malone, 218 East 53rd Street, Midtown Manhattan, NYC

7 Nov

By Dennis Ford, CEO, LSN

2013_hudson_malone1234LSN is primarily focused on the latest trends in the life science marketplace. However, every now and then we like to take a glance at something interesting outside the margins.  This past week LSN attended the Partnering For Cures conference at the Grand Hyatt in New York City. While in Manhattan, my team and I had the privilege of attending the soft opening of a new “New York joint,” Hudson Malone. This fantastic new establishment is sure to become iconic bar and restaurant treasure amongst the chains in midtown.  Here’s the first secret: the sign above the saloon says Eva’s Dress Shop – look for the handcrafted light fixture on the wall by the entrance to know you have it right.

Hudson Malone is Located at 218 East 53rd St. This opening is a milestone for legendary New York bartender, Doug Quinn, and his incredible family and friends.  Doug’s reputation for caring about his patrons and providing top notch personal service has made him a local star in Manhattan and a go-to guy for any NYC tips you need to know. This will surely be an “in” locals bar with a global clientele.  Next time you are in NYC, duck into this great bar, and tell Doug that you are a part of the Life Science Nation tribe… and then fasten your seatbelt!

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New Investors Join the Fray – CROs Leveraging Service for Equity

6 Nov

By Michael Quigley, Research Manager, LSN

mike-2Life Science Nation tracks the full spectrum of life science investors, and is always at the forefront of emerging investor trends. One increasingly popular investor model in the space revolves around service providers engaging in equity deals with clients. LSN touched upon this emerging trend back in March, describing how CROs have begun to take positions in cash-strapped companies in exchange for providing services. Now, many of these CROs are becoming more focused on getting directly involved in a sophisticated manner. New players are bringing both services and capital to the table with several service providers spinning out their own dedicated corporate venture capital division. That’s right – several CROs are, for the first time, opening corporate venture arms.

Having spoken with several of these investors personally, they are savvy, strategic, and capable: They tend to be extremely knowledgeable of the technologies and science they are investing in. Typically, they have established powerful networks with strategic partners in place. Most interestingly, since the service provider owns portions of the companies that they are working with, they are further incentivized to perform their services as efficiently as possible and with the highest probability of success. This increased alignment of interest makes these partnerships not only attractive to fundraising companies, but also to co-investors looking to allocate capital. In an industry that is inherently high-risk, a partner who is an expert in the scientific and regulatory hurdles your firm is going to face is a massive advantage.

As CROs focus more on cash-strapped early stage companies and look to make greater returns, this model could very well become more prevalent. After all, who better to vet technology than the firms that have been running trials for years?  The current shift in the financing environment has left an opportunity for firms with expertise in the development process and significant capital to make massive returns. The fallout is yet to be seen, but as a fundraising company, is it important to stay focused on this emerging trend.

 

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