1 / 8

Life Science Venture Capital 11th Annual NIH SBIR/STTR Conference July 1, 2009

Randy H. Weiss, Ph.D. Partner, Triathlon Medical Ventures. Life Science Venture Capital 11th Annual NIH SBIR/STTR Conference July 1, 2009. Background. Partner, Triathlon Medical Ventures Fund I is $105M (17 investments; raising Fund II) Focus on early-stage biomedical investments in Midwest

sheilawaters
Download Presentation

Life Science Venture Capital 11th Annual NIH SBIR/STTR Conference July 1, 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Randy H. Weiss, Ph.D. Partner, Triathlon Medical Ventures Life Science Venture Capital11th Annual NIH SBIR/STTR ConferenceJuly 1, 2009

  2. Background • Partner, Triathlon Medical Ventures • Fund I is $105M (17 investments; raising Fund II) • Focus on early-stage biomedical investments in Midwest • Member, St. Louis Arch Angels • Co-founder and Board Chair for Cardialen • Implantable medical device for painless treatment of atrial fibrillation and flutter (spin-out of Washington Univ. in St. Louis) • Co-founder, Interim CEO, Board Chair of Vasculox • Biopharmaceuticals for organ transplantation (spin-out of Washington Univ. in St. Louis) • Entrepreneur-in-Residence, U. of Iowa Research Foundation 11th Annual NIH SBIR/STTR Conference

  3. What are VCs Looking For? • Innovative technology that enables a competitive market advantage over current and emerging products • Products that address significant and recognized unmet needs in large and growing markets • Strong and defensible intellectual property with freedom to operate or other barriers to market entry • Development plan that can be achieved with accessible capital to provide an exit with attractive returns in a reasonable timeframe • Successful, experienced management team 11th Annual NIH SBIR/STTR Conference

  4. Potential for High Growth Companies • High Potential: • Innovative, disruptive technology • Exit greater than $100 million (medical devices) or $200 million (pharma/biotechnology) • Large up-side potential but with high risk • Capital needs might be $25M or more • Expected multiples of >2.5x • Exit in 3-7 year timeframe • Strong VC interest • Less angel investor interest • Example: Pharmaceutical company has plans to advance pre-clinical drug candidate through Phase II clinicals 11th Annual NIH SBIR/STTR Conference

  5. Potential for High Growth Companies • Medium Potential: • Incremental improvement in technology • Exit between $10 million and $100 million (healthcare services, medical products/IT) • Up-side potential may be capped but with lower perceived risk, earlier revenue expectation, and lower capital needs • Exit within 3-5 years • Strong angel investor interest with some VC interest • Expected multiples of >10x • Example: Medical software firm has plan to ramp-up revenues to $3M in 2-3 years 11th Annual NIH SBIR/STTR Conference

  6. What Do VCs Expect in Return? • Invest in a company, not a research project , with a well-defined business plan and management team that can execute the plan • Ownership in the company • Opportunity to invest in follow-on rounds • Seat on the board (assuming a substantial investment) with voting rights to allow for control over the company • Defined exit strategy that provide attractive returns on investment in an acceptable amount of time and with acceptable risk 11th Annual NIH SBIR/STTR Conference

  7. Investment Process • Submit Executive Summary or Business Plan • One or more individuals of investor group will screen opportunity • Invitation to present to entire investor group • Due diligence (under confidentiality) • Term sheet submitted by lead investor(s) • Negotiation of term sheet • Additional follow-on investors identified • Closing of investment 11th Annual NIH SBIR/STTR Conference

  8. Corporate/Legal Management Science & Technology Intellectual Property Manufacturing/Product Development Clinical/Regulatory Market/Sales Business Development Finance/Investment Shareholders/Board of Directors Due Diligence 11th Annual NIH SBIR/STTR Conference

More Related