Tag Archives: service providers

Hot Investor Mandate 3: Corporate Venture Arm of Leading Netherlands’ Telecom Service Provider Looking for Data and Software-Based Healthcare Technologies

19 Apr

Established in 2015, a corporate venture capital investment arm of a leading telecom and ICT service provider has interests in a variety of sectors in relation to their corporate activities, one of them being Digital Health. The firm manages a €70M revolving venture fund via which the firm invests in fast growing technology companies (Series A-C). In addition, the firm selectively invest in venture capital investment funds that complement the firm’ direct investment strategy and provide broader access to new technology companies and partnership opportunities. In January 2018, the firm for example initiated an early stage (seed) investment fund with multiple Dutch investors.

The firm aims to create value-creating partnerships with innovative technology companies providing access to capital, industry expertise, professional network and customer channels. The firm mainly focuses on opportunities based in Europe but is also interested to get in touch with companies which are located in USA and Canada, as long as they have an interest in expanding their commercial activities to the Netherlands. The firm’s initial ticket size typically ranges from €0.5M to €3M for minority stakes, building long-term partnerships, ultimately aiming for external exits, not acquisitions. The firm is open to both leading and co-investing, depending on the proposition. While the firm does not aim for a specific number of investments, the firm has made 6 investments per year since establishment.

The firm is highly interested in B2B/B2C software-based technology companies. The firm will only consider medical or diagnostic hardware companies that have a strong data or software component. The firm is especially interested in technologies that enable easier and smarter health management for patients and or medical professionals (i.e. self-monitoring devices for chronic disease management with real-time data accessibility, preventative healthcare, etc.). The firm is also interested in propositions that focus on (cyber) security solutions and or propositions that create efficiencies/cost-reductions within health organizations.

The firm seeks technologies that have a strategic fit or enough potential for a future collaboration with the firm’s health business, that fall under the firm’s sectors of interest. The firm prefers to work with management teams with a proven track record and wants to see market traction/validation, with at least €0.5M in annual revenues.

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

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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