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Life Science Investment Trends

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FountainBlue's Life Science Entrepreneurs' Forumm

An Investor's Perspective on Trends and Opportunities for Life Science Companies

Sponsored by Perkins Coie LLP http://www.perkinscoie.com, Girvan http://www.girvan.org and Sanford Rose Associates http://www.srasv.com.

 

Our May 22 Life Science Entrepreneurs' Forum was on the topic of An Investor's Perspective on Trends and Opportunities for Life Science Companies, featuring:
  • Facilitator Roy Fiebiger, Sanford Rose and Associates 
  • Panelist Andrew Farquharson, InCube Ventures
  • Panelist Nina Kjellson, Partner, InterWest Partners
  • Panelist John Maroney, General Partner, Delphi Ventures
  • Panelist Kevin Wasserstein, Versant Ventures
 
 
Below is a compilation of advice for your reference.
 
About the Team
  • Ask yourself if your team fits the organization's opportunity - does everyone have the experience to lead, and to lead for what stage/size of the company? does everyone have the skills and connections to help the organization to succeed? Is the chemistry good between the entrepreneurs and the investors? etc.,
Show Positive Progress for Your Organization
  • Focus on the strategic objectives for your organization and make measurable progress on agreed milestones. This is important whether you're getting funding, between rounds, or never planning to receive funding.
  • Understand why progress is not being made - is it related to the team? the resources? the market?
  • With that understanding, take action to address the problem.
  • Avoid the 'lingering failures' or 'walking dead' - companies that are limping along without making progress, showing promise but not delivering. It's important to keep moving forward in specific areas, and to understand up front when to 'pull the plug'.
  • Conduct hypothesis-driven experiments which can help drive decisions. Conducting them early and cost-effectively will also help organization to make strategic decisions.
Build Credibility Behind Your Organization (Prove 'the juice is worth the squeeze'.)
  • Articulate the market size, your specific niche, your strategy for addressing that niche, the competitive landscape, etc.,
  • Know how you are differentiating yourself and communicate that clearly.
  • Consider the immediate likely objections of potential investors and be prepared to address those objections prior to meeting with investors.
  • Consider market adoption trends and health care provider practices when you write your executive summary.
  • Be flexible about your organization, its goals, its revenue models, etc., It's rare that an early-stage company's business plan endures for the long term.
  • Don't have 'founder-itis' - know your skills and your contributions and be willing to hire the right partners and team to address the needs of the organization. Put the organization in front of your own personal needs if necessary.
  • Physicians may be good partners in that they may be able to validate a market need.
  • Some companies come out of 'near-death' experiences stronger and better for it, and can build credibility based on learnings from those experiences.
Build Relationships with the Investment Community
  • Research which investors are funding in your space. Call the portfolio companies and ask them about their experiences with the funders.
  • Identify and make connections with investors who are funding in your market niche and find someone who can make an introduction to them, rather than submitting a business plan without an introduction.
  • When you have a conversation with a VC, be likeable and personable and listen thoughtfully rather than spending the whole time selling.
  • Don't get discouraged with 'nos'. If you get a rejection from a VC, take the opportunity to ask for feedback and even recommendations and introductions to other VCs who might be more appropriate funders for your opportunity.
  • Remember that relationships with investors are two-way relationships. Make sure that the investor fits your expectations on how the monies will be invested (how much for R&D, single product investment? team investment? etc.,)
  • Don't be afraid to ask the touch questions.

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