Strategy
BioVentures invests in companies commercializing breakthrough life science and healthcare technology with clear application, a strong proprietary position and a well-understood development pathway. We seek opportunities with a defined “entrepreneurial advantage” that will enable a new venture to prevail in an extremely competitive environment. Therefore, we believe that venture-funded technology must present significant incentives for adoption to the physician, the payor and the patient.
In selecting investments, we look for the following attributes
- Advanced technology with obvious commercial application
- Data to support claims
- Strong intellectual property position through patents, licensing agreements and trade secrets
- Management appropriate to the stage of development with the vision required to capture value and lead the company to a liquidity event
- A well defined plan of scientific experimentation or commercial advances which, if achieved, should lead to an acceptable valuation profile
- Technological or market advantages of substantial interest to potential commercial partners, possible acquirers and to the public markets, and a corporate strategy with multiple liquidity options
We expect business plans to present the potential of a liquidity event within five years of our initial investment. Commitments generally fall in the range of $3 to $7 million total investment in each portfolio company over a series of investment rounds.
Our investments are concentrated in the areas of human therapeutics, medical devices and diagnostics, though we will consider any interesting opportunity that fits within our areas of knowledge and experience.
Therapeutics: Our partners understand the tremendous potential in new drugs and new drug discovery tools growing out of advances in the biological and medical sciences. BioVentures invests in companies with potential new compounds and new ways of addressing disease that are backed by robust intellectual property. In general, we like to see animal data to support claims of efficacy, and financing strategies that support clinical trial requirements and drug development timelines.
Medical Devices: The tools of medicine are becoming increasingly valuable and efficacious, utilizing a new generation of biosensors, virtual reality, robotics, imaging systems, and other innovations to create more effective and less traumatic ways of administering drugs, excising diseased tissue, determining and enhancing organ function, reducing cost and increasing physicians' effectiveness. The “time to market” for medical devices is typically less than that for new therapeutic drugs, and therefore a view to regulatory approval and product marketing becomes more relevant to our investment decision.
Diagnostics: Advances in life sciences in general and genomics and proteomics in particular are leading to new types of diagnostic tools that promise to diagnose disease earlier, faster and/or more accurately. It is a promising opportunity for entrepreneurs, investors and patients. However, new diagnostics developed by entrepreneurial enterprises must hold the promise of altering the way medicine is practiced, reducing the cost of treatment and increasing positive outcomes. Incremental advances in technology tend not to be suitable to venture investment.
Special Situations: As opportunists, we are open to investment in any area in which we understand technology and markets. For example, our portfolio includes genomics, medical services and imaging technology investments. Please contact us if you wish to discuss the suitability of a specific technology or phase of business to our current fund.
Seed Stage Investments: In each fund, we commit to a limited number of seed-stage investments based on the state of the portfolio, the availability of Partner time, the potential for exceptional returns and our chemistry with management. We expect to devote significant amounts of Partner time to the initial development of new technology. Therefore, location becomes a critical issue.
