VM	  Index	  	  by	  Venture	  Market	  Intelligence	                     Burak	  Alpar	         CEO	  Venture	  Market	  ...
Contents	  1.  Life	  Science	  Venture	  Capital	  –	  2012	  update	  2.  Strategies	  for	  Raising	  Venture	  Capital...
SecQon	  1	  LIFE	  SCIENCE	  VENTURE	  CAPITAL	  –	  2012	  UPDATE	                      www.vmindex.com	                ...
Raising	  Venture	  Capital	  is	  GeSng	  Harder	  Compe&&on	  for	  money	  is	        •  Investment	  in	  life	  scien...
N.	  America	  -­‐	  Life	  Science	  Investment	  Ac&vity	  returning	  to	                                              ...
Europe	  -­‐	  Life	  Science	  Investment	  Investment	  almost	                                                         ...
The	  Truth	  About	  Venture	  Capital	  Regional	  investment	                            •  CEOs	  can’t	  rely	  on	  ...
West	  Coast	  U.S.	  -­‐	  Top	  25	  Life	  Science	  investors	                                                        ...
West	  Coast	  U.S.	  -­‐	  Life	  Science	  Investments	  2	  of	  the	  top	  3	  deals	  of	        Largest	  Deals	  –...
North	  East	  U.S.	  -­‐	  Top	  25	  Life	  Science	  investors	                                                        ...
North	  East	  U.S.	  -­‐	  Life	  Science	  Investments	  All	  of	  the	  top	  3	  deals	  of	        Largest	  Deals	 ...
United	  Kingdom	  -­‐	  Top	  25	  Life	  Science	  investors	                                                           ...
United	  Kingdom	  -­‐	  Life	  Science	  Investments	  2	  of	  the	  top	  3	  deals	  of	             Largest	  Deals	 ...
Germany,	  Austria	  &	  Switzerland	  -­‐	  Top	  25	  Life	  Science	  investors	                                       ...
Germany,	  Austria	  &	  Switzerland	  -­‐	  Life	  Science	  Investments	  2	  of	  the	  top	  3	  deals	  of	     Large...
France	  &	  Benelux	  -­‐	  Top	  25	  Life	  Science	  investors	                                                       ...
France	  &	  Benelux	  -­‐	  Life	  Science	  Investments	  All	  3	  of	  the	  top	  deals	  of	  2011	  had	  non-­‐Top...
Scandinavia	  -­‐	  Top	  25	  Life	  Science	  investors	                                                                ...
Scandinavia	  -­‐	  Life	  Science	  Investments	  All	  3	  of	  the	  top	  deals	  of	         Largest	  Deals	  –	  20...
Conclusions	  -­‐	  I	  •  Raising	  venture	  capital	  is	  never	  easy	  •  CompeQQon	  for	  investment	  is	  intens...
Conclusions	  -­‐	  II	  •  When	  raising	  money	  need	  to	  differenQate	  between	     lead	  and	  follower	  invest...
SecQon	  2	  STRATEGIES	  FOR	  RAISING	  VENTURE	  CAPITAL	                    www.vmindex.com	           21	  
Methodology	  –	  why	  should	  CEOs	  plan	  their	  fund	  raising	                                                    ...
PreparaQon	  –	  before	  you	  start	  Taking	  &me	  to	  plan	  your	  fund	  raising	  process	                       ...
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
Life Science Venture Capital 2012 Update
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Life Science Venture Capital 2012 Update

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A review of active investors in US and European life science/biotechnology companies, and current venture capital market dynamics.

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Life Science Venture Capital 2012 Update

  1. 1. VM  Index    by  Venture  Market  Intelligence   Burak  Alpar   CEO  Venture  Market  Intelligence   burak.alpar@vmindex.com   +44  20  3514  0710     www.vmindex.com  
  2. 2. Contents  1.  Life  Science  Venture  Capital  –  2012  update  2.  Strategies  for  Raising  Venture  Capital  3.  VM  Index  –  Venture  Capital  Made  Easier  4.  Case  study:  Rempex  PharmaceuQcals   www.vmindex.com   1  
  3. 3. SecQon  1  LIFE  SCIENCE  VENTURE  CAPITAL  –  2012  UPDATE   www.vmindex.com   2  
  4. 4. Raising  Venture  Capital  is  GeSng  Harder  Compe&&on  for  money  is   •  Investment  in  life  sciences  down  30%  from  2007  peak  in  US  &  intensifying  while  funds   Europe  ($10.9bn  to  $7.7bn)  are  drying  up     •  1,506  biotech  companies  (Europe  &  N.America)  raised  money     in  the  last  5  years     –  All  are  compeQng  for  finance,  licencing  deals  and  exits  VCs  can  afford  to  take  their  &me,  and  want  to   –  Thousands  more  start-­‐ups  are  looking  for  their  first  round  of  funding  meet  and  benchmark  as   –  On  average  only  600  companies  have  successfully  closed  funding  rounds  each  many  companies  as   year  over  the  last  5  years  possible     –  Half  of  the  established  companies  looking  for  money  will  not  get  funded  this     year       •  “Companies  have  a  less  than  1%  chance  with  a  VC:    We  meet  How  much  &me  can  CEOs   300-­‐400  companies  a  year,  and  make  2  or  3  investments.”  afford  to  waste  speaking   –  Dinko  Valerio,  General  Partner,  Aescap  speaking  at  BioEurope  Spring,    to  the  wrong  investors?   Amsterdam,  March  2012   •  It’s  a  ‘numbers  game’  –  you  have  to  go  to  ALL  potenQal  investors   in  the  right  order  as  fast  as  possible   www.vmindex.com   3  
  5. 5. N.  America  -­‐  Life  Science  Investment  Ac&vity  returning  to   10000   700  2008  levels,  but  s&ll   8891                                                    6260                                                    5149                                                      5465                                                    6373             9000   600  28%  down  from   8000   Amount  Raised  (USD  m)  2007  peak   7000   500   Number  of  deals     6000   400  Investment  is   5000   300  moving  towards   4000  later-­‐stage  deals   3000   200     2000   100  Deals  are  smaller   1000   0   0  and  fewer  deals  are  geJng  done  than  in   2007   2008   2009   2010   2011  2007/8   Amount  Raised  -­‐  SVR   Amount  Raised  -­‐  FVR   Number  of  deals  Number  of  deals   581   453   370   390   438  Amount  raised  –  FVR  $m   1451   1301   928   887   1156  Amount  raised  –  SVR  $m   7440   4959   4221   4578   5212  Avg.  deal  size  –  FVR  $m   8.2   9.0   9.6   9.5   8.8  Avg.  deal  size  –  SVR  $m   21.3   19.9   17.5   17.1   19.8  *N.  America  =  US  &  Canada.    All  amounts  USD   4  Source:  vmindex.com  
  6. 6. Europe  -­‐  Life  Science  Investment  Investment  almost   2500   2012                                                  1614                                                    1088                                                      1415                                                    1405             250  halved  from  2007  to  2009.    S&ll  30%  down   2000   200   Amount  Raied  (USD  m)  from  2007  peak  in   Number  of  deals  2011   1500   150    Later  stage  deals   1000   100  increasingly  aRrac&ve   500   50    N.America  has  done   0   0  2.6x  more  deals  than   2007   2008   2009   2010   2011  Europe  and  raised   Amount  Raised  -­‐  SVR   Amount  Raised  -­‐  FVR   Number  of  deals  4.3x  more  capital  Number  of  deals   229   194   135   147   159  Amount  raised  –  FVR  $m   463   349   247   308   283  Amount  raised  –  SVR  $m   1549   1265   841   1107   1122  Avg.  deal  size  –  FVR  $m   5.0   5.5   6.5   7.0   5.4  Avg.  deal  size  –  SVR  $m   16.7   13.8   12.2   13.1   15.2  *N.  America  =  US  &  Canada.    All  amounts  USD   5  Source:  vmindex.com  
  7. 7. The  Truth  About  Venture  Capital  Regional  investment   •  CEOs  can’t  rely  on  just  speaking  to  the  big  name  VCs  analysis*  reveals  striking  similari&es  in  all  the   •  Most  investors  are  not  as  acQve  as  you  think  –  most  acQvity  is  major  VC  markets   funding  exisQng  pornolio,  not  new  investments   •  There  is  a  ‘long  tail’  of  acQve  life  science  investors.    Most  do  just  1  Google,  guess-­‐work  and  luck  will  not  find  you  all   deal  per  year  or  less  and  have  a  much  lower  profile.    How  do  you  the  right  investors  to   find  them?  approach,  and  will  waste   •  Many  deals  are  led  by  an  increasing  number  of  lesser  known  or  a  great  deal  of  &me,  money  and  opportuni&es   non-­‐obvious  investors   •  Many  deals  include  non-­‐VC  investors  (eg  family  offices,  corporate  VM  Index  tracks  and   funds,  etc)  analyses  all  ac&ve  investors,  and  separates   •  Lead  investors  are  hard  to  idenQfy  without  VM  Index  and  leads  from  followers   represent  a  minority  of  the  total  populaQon  *See  analysis  on  following  slides   •  Cross-­‐border/non-­‐local  investors  represent  a  significant  source  of   funding,  but  which  ones  should  you  approach?   www.vmindex.com   6  
  8. 8. West  Coast  U.S.  -­‐  Top  25  Life  Science  investors   N-;O$(?A?+$*5%56%  of  the  biggest  names   !"#$%&( )$*+,-*(&$(% ./01.22 3/22didn’t  do  a  deal  in  the   !"#$%&$((")%$*+( &,-.,/0,1 23 4region  last  year   $5*$6$7*&+7( )89:;</=:8 >? @ A5+%&+76+7A%&()$BC%+5!DEF+7( )89:;</=:8 >G 2   "7E%#+!$!H%("7( &,-F</I >3 G428  investors  ac&ve  in  Life   ("C%&&"H$H+&*B7+( )89:;</=:8 >J @ H+&7")A )89:;</=:8 3K @Sciences  in  the  region   H+7($&*H+&*B7+( )89:;</=:8 3? @over  5  years   E$F)%*F)$6%*$5 )89:;</=:8 34 2   67"(6+)*H+&*B7+6$7*&+7( )89:;</=:8 34 > +((+LM""!5$&!N+$5*NH+&*B7+( )89:;</=:8 3O >85%  of  all  ac&ve  investors   #"N7!$H%!"MH+&*B7+( )89:;</=:8 3O Odid  1  deal  or  less  per  year   &+M+&*+767%(+$((")%$*+( )89:;</=:8 3O 2 H%H"H+&*B7+( )89:;</=:8 32 Oover  the  last  5  years   4$#H+&*B7+( )89:;</=:8 3> @   #6#)$6%*$5 #8008PQR0,SS0 3> @25%  of  ac&ve  investors   $7)NH+&*B7+6$7*&+7( %99:=<:0 33 @ C"7M$7!H+&*B7+( )89:;</=:8 33 @headquartered  outside   C7$T%+7N+$5*N)$7+H+&*B7+( M80Q:=US<= 33 @the  U.S.  &  Canada   VE(H+&*B7+6$7*&+7( 4-%&(*56* 33 O &+M5+$CH+&*B7+6$7*&+7( &,-F</I 33 @   EB77%55$&!)"#6$&F )89:;</=:8 3J @Only  36%  of  investors   )5$7B(H+&*B7+( #8008PQR0,SS0 3J >lead  deals   NE#6$7*&+7( 786&9$(5*"+ 3J @ %&*+7M+(*6$7*&+7( )89:;</=:8 3J @   &"H"H+&*B7+( :$";*(< 3J @  CEOs  need  to  approach   =>?3@?56A$?%B6$"B$?6"#$%&(%?"&?6"#$%&6"C?($C6"?6"?3/22 2D?E@FGHall  the  right  investors  to  maximise  the  chances  of   ./01.22 !"#$"%#%& 3/22 !"#$"%#%& =&*5?56A$?%B6$"B$?6"#$%&(%?*B&6#$?6"?($C6" D3I 2D0success  on  the  best  terms   J$*+?6"#$%&(% 342 ()! OG (*! !"#$%&(%?*#$(*C6"C?->?&?2?+$*5KL$*( 2GO +,! 33K +-! M*(5L?%&*C$?6"#$%&(% 324 (.! 22 ..! N-;O$(?A?B(%%1O(+$(?6"#$%&(% 3JG .,! 2> ..!Source:  vmindex.com   7  
  9. 9. West  Coast  U.S.  -­‐  Life  Science  Investments  2  of  the  top  3  deals  of   Largest  Deals  –  2011  2011  were  led  by    investors  outside  the  list   1.  Portola  PharmaceuRcals  –  USD  89.0m  of  25  most  ac&ve   5th  largest  deal  in  the  US.    Led  by  Temasek  (1,  Singapore)  with  exisQng  investors  investors   parQcipaQng.  Temasek  outside  top  25  investors      The  largest  deal  was  led   2.  Rempex  PharmaceuRcals  –  USD  67.5m  by  a  cross-­‐border  investor   9th  largest  deal  in  the  US.    Co-­‐Led  by  Frazier  Healthcare  (4)  and  Vivo  Ventures  (5)  who  only  did  1  investment    in  the  region  in  2011   3.  CardioDX–  USD  60.0m     10th  largest  deal  in  the  US.    Led  by  Longitude  Capital  (3).    Longitude  outside  top  25  The  top  3  deals  account   investors  for  approx.  10%  of  the   Amount  Invested  in  Region  (USDm)  money  invested  in  the   4500  region  in  2011   4000   44%   3500   3000   36%   43%   43%   37%   2500   2000   1500   1000   500   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  N.America   8  Source:  vmindex.com  
  10. 10. North  East  U.S.  -­‐  Top  25  Life  Science  investors   NJ;O$(9A97$65%40%  of  the  biggest  names   !"#$%&( )$*+" ,-./,00 1-00didn’t  do  a  deal  in  the   !"#$%&()*+,-%*(!$%,+*% ./00/12304550 67 8region  last  year   9#$:;&!()*+,-%* ./00/12304550 7< = .!.(>$!&,$# ./00/12304550 ?@ 6   ,;&%A(%">B()*+,-%* ./00/12304550 ?? <<392  investors  ac&ve  in  Life   +")$%,&()*+,-%*(9-+A 23+&4$(56"7 ?< C )(#&9*(>&*+>* ./00/12304550 <D CSciences  in  the  region   E**.*%()*+,-%*(!$%,+*% +4F(GHIJ <K @over  5  years   +*L(*+,*%!%&*($">&$,* >/MNOHIPN/ <K =   )*+%">B >/MNOHIPN/ <@ 7 A".$&+($">&$,* +4F(Q4I04R <6 C89%  of  all  ac&ve  investors   "%E&.*A($A)&"% +4F(GHIJ <7 @did  1  deal  or  less  per  year   "S9"%A(E&">&*+>*(!$%,+*% ./00/12304550 <7 C $,#$()*+,-%* ./00/12304550 <? @over  the  last  5  years   ;*$#,;>$%*()*+,-%* +4F(Q4I04R <? 7   $E&+:L"%,;(.$+$:*.*+, 8"+&$79:+"*7; << C22%  of  ac&ve  investors   $%>;()*+,-%*(!$%,+*% &MMNPHN0 << ? ;E.(!$%,+*% 23+&4$(56"7 << Cheadquartered  outside   +")"()*+,-%* <$";6(= << Cthe  U.S.  &  Canada   T-$B*%(E&")*+,-%* !4PP0RMU/PN/ << C BG#&+*()*+,-%* >/MNOHIPN/ << C   9#GE%&A:*(>$!&,$#(!$%,+*% ./00/12304550 <V 7Only  34%  of  investors   &+,*%L*,(!$%,+*% >/MNOHIPN/ <V ? 9&A*#&,G(E&">&*+>* ./00/12304550 8 Clead  deals   9%$W&*%(;*$#,;>$%*()*+,-%* L/02NPX5HP 8 ?   %C"+* !4PP0RMU/PN/ 8 6   >?91@95+A$9%B+$"B$9+"#$%&(%9"&9+"#$%&+"*9($*+"9+"91-00 0-9CD-EFCEOs  need  to  approach  all  the  right  investors  to   ,-./,00 !"#$"%#%& 1-00 !"#$"%#%&maximise  the  chances  of   >&6595+A$9%B+$"B$9+"#$%&(%96B&+#$9+"9($*+" GH1 0DGsuccess  on  the  best  terms   I$679+"#$%&(% <76 ()! 6? *+! !"#$%&(%96#$(6*+"*9J?9&9097$65KL$6( 76D ,+! <VK -.! M6(5L9%&6*$9+"#$%&(% <@7 (+! 7V */! NJ;O$(9A9B(%%/O(7$(9+"#$%&(% D@ **! ?@ /-!Source:  vmindex.com   9  
  11. 11. North  East  U.S.  -­‐  Life  Science  Investments  All  of  the  top  3  deals  of   Largest  Deals  –  2011  2011  were  led  by    investors  outside  the  list   1.  Valeritas  –  USD  150.0m  of  25  most  ac&ve   Largest  deal  in  the  US.    Led  by  Welsh,  Carson,  Anderson  &  Stowe  (1)  -­‐  outside  top  25  investors   investor  list      Second  largest  deal  led  by   2.  Tesaro  –  USD  101.0m  Kleiner  Perkins  –  a  big   2nd  largest  deal  in  the  US.    Led  by  Kleiner  Perkins  (6)  -­‐  outside  top  25  investor  list  name  however  not  a  top    25  investor  in  this  region   3.  Radius  Health  –  USD  78.8m     10th  largest  deal  in  the  US.    Co-­‐led  by  BB  Biotech  (1,  Switzerland),  Brookside  Group  (1),  The  top  3  deals  account   and  Saints  Capital  (3)  –  all  outside  the  top  25  investor  list.  for  approx.  15%  of  total  money  invested  in  the  region  in  2011   Amount  Invested  in  Region  (USDm)   2500   33%   2000   27%   16%   29%   27%   1500   1000   500   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  N.America   10  Source:  vmindex.com  
  12. 12. United  Kingdom  -­‐  Top  25  Life  Science  investors   <-AQ$(=G=+$*;%64%  of  the  biggest  names   !"#$%&( )$*+,-*(&$(% ./01.22 3/22didn’t  do  a  deal  in  the   !"#$%!&(!))*+&,!*)- ./ 01 2region  last  year   34"($5.!,3(#&%,)$%- ./ 67 8 !#(9%*.#(:&/&(,*#(,$;<)**93(+$),.%$-= ./ 62 >   -;*,,!-<($),$%#%!-$ ./ 62 0221  investors  ac&ve  in  Life   *?4*%@(,$;<)**93(+$),.%$(;&#!,&(,%.-,-(:,<$= ./ 66 > A!*4.-!*) ./ 6B CSciences  in  the  U.K.  over  5   4!)&);$(D&$- ./ 6B 0years   "+"(EFG(-HEGIHG(#JKLIGKM ./ 6B 0   )$-,& ./ 6B C -+(!4$(-;!$);$- 4*%%*56-%$&&% 6B >90%  of  all  ac&ve  investors   )*+&%,!-(+$),.%$(4.)@- 789&:$(;*"+ 1 Cdid  1  deal  or  less  per  year   *?4*%@(;&#!,&(#&%,)$%- ./ 1 C ;&,&#.,(+$),.%$("&)&9$%- ./ N Cover  the  last  5  years   D$;*"$(,%.-,(:)"A(-$#,$"A$%(+$),.%$-= ./ N C   D"($),$%#%!-$ ./ N C45%  of  ac&ve  investors   &A$%@$$)(&--$,("&)&9$"$), ./ 2 C &@+$),(+$),.%$(#&%,)$%- ./ 2 Cheadquartered  outside   $-#$%&),$(+$),.%$- <$&6$(;*"+% 2 Cthe  U.K.   !)+$-;*(#%!+&,$(;&#!,& <$8=>(? 2 0 *)9A*D(;&#!,& ./ 2 C   )*%,<-,&%(+$),.%$-(:4/&()*%,<-,&%($5.!,3(!)+$-,*%-= ./ 2 COnly  41%  of  investors   )*+*(+$),.%$- @$"A*(? 2 Clead  deals   &A!)9D*%,<("&)&9$"$), ./ O C ;&"A%!@9$($),$%#%!-$ ./ O C   9&A%!$(!)+$-,"$),- B$""%C;#*"9* O CCEOs  need  to  approach  all  the  right  investors  to   DE=3F=;9G$=%59$"5$=9"#$%&(%="&=9"#$%&9"H=($H9"=9"=3/22 2I=JIKLMmaximise  the  chances  of  success  on  the  best  terms   ./01.22 !"#$"%#%& 3/22 !"#$"%#%& D&*;=;9G$=%59$"5$=9"#$%&(%=*5&9#$=9"=($H9" 332 0/ N$*+=9"#$%&(% 76 ()! 08 **! !"#$%&(%=*#$(*H9"H=-E=&=2=+$*;OC$*( 677 +,! >1 -+! P*(;C=%&*H$=9"#$%&(% 27 *)! 61 .-! <-AQ$(=G=5(%%1Q(+$(=9"#$%&(% 77 (/! 86 ((!Source:  vmindex.com   11  
  13. 13. United  Kingdom  -­‐  Life  Science  Investments  2  of  the  top  3  deals  of   Largest  Deals  –  2011  2011  were  led  by    overseas  investors  outside   1.  Circassia  –  USD  98.0m  the  list  of  25  most  ac&ve   2nd  largest  deal  in  Europe.    Also,  larger  than  #1  deal  in  the  U.S.  West  Coast  region.    Led  by     Imperial  InnovaQons  (6)    3  of  the  4  lead  investors  in   2.  Oxford  Nanopore  Technology  –  USD  41.3m  the  top  three  deals  are   4th  largest  deal  in  Europe.    Redmile  Group  (1,  California)  co-­‐led  the  deal  with  exisQng  located  outside  the  U.K.,   investors.    Redmile  not  in  top  25  investor  list  only  1  of  them  is  U.S.    based   3.  Oxyrane  –  USD  26.5m     9th  largest  deal  in  Europe.    Co-­‐led  by  Forbion  Capital  Partners  (5,  Netherlands)  and  The  top  3  deals  account   Morningside  Group  (3,  China).    Both  outside  top  25  investor  list  for  approx.  35%  of  total  money  invested  in  the   700   Amount  Invested  in  Region  (USDm)  region  in  2011   36%   600   28%   34%   500   28%   400   300   23%   200   100   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  Europe   12  Source:  vmindex.com  
  14. 14. Germany,  Austria  &  Switzerland  -­‐  Top  25  Life  Science  investors   7-=L$(6B6+$*8%28%  of  the  biggest  names   !"#$%&( )$*+,-*(&$(% ./01.22 3/22didn’t  do  a  deal  in  the   !"# $%&()* +, -region  last  year   ./$.0123.4$567825"978: $%&()* ;; < =/$4"978: $%&()* >- +   ?/9=28@A51725: :BCDE%&F()G >, H172  investors  ac&ve  in  Life   ?AI2574!A@/1AJ $%&()* >+ ; .?=4@A51725: :BCDE%&F()G >+ ;Sciences  in  the  region   1K=43A@/1AJ $%&()* >+ ;over  5  years   A2:3A@4K271652 45$67$&5$(8*"+% L >   ??4?/9123. :BCDE%&F()G L ; J:@4J/"24:3/2732:4@A51725: 45$67$&5$(8*"+% L ;91%  of  all  ac&ve  investors   A1JA:4K271652 9*%%*:5-%$&&% M >did  1  deal  or  less  per  year   /782N4K271652: :BCDE%&F()G M 0 :9"/779KA4@A51725: ;(*":$ - 0over  the  last  5  years   J??#4K27165243A@/1AJ $%&()* < 0   75#4?A7! $%&()* < 040%  of  ac&ve  investors   K/4@A51725: :BCDE%&F()G < ; A5AK/: :BCDE%&F()G , >headquartered  outside   352A1.954K271652 $%&()* , ;the  region   8/2K/7/4.9@@4?/9123. $%&()* , 0 28=9784824591.:3./J84/7K2:1=2714@A51725: ;(*":$ , ;   $998K2714?212/J/$67$:=A7A$2=271 $%&()* , ;Only  36%  of  investors   79K94K271652: <$"=*(> , ;lead  deals   :.:4$2:2JJ:3.A"14"654?212/J/$67$:=A7A$2=271 $%&()* , 0 :K4J/"24:3/2732: 9*%%*:5-%$&&% , ;   ?/9= $%&()* H 0CEOs  need  to  approach  all  the  right  investors  to   4?63@68AB$6%:A$":$6A"#$%&(%6"&6A"#$%&A"C6($CA"6A"63/22 06D3EFGmaximise  the  chances  of  success  on  the  best  terms   ./01.22 !"#$"%#%& 3/22 !"#$"%#%& 4&*868AB$6%:A$":$6A"#$%&(%6*:&A#$6A"6($CA" 203 @E H$*+6A"#$%&(% <; ()! >H *+! !"#$%&(%6*#$(*CA"C6-?6&626+$*8IJ$*( >,< ,-! HO ),! K*(8J6%&*C$6A"#$%&(% -- +.! >L ((! 7-=L$(6B6:(%%1L(+$(6A"#$%&(% <M +/! ;< +.! 13  Source:  vmindex.com  
  15. 15. Germany,  Austria  &  Switzerland  -­‐  Life  Science  Investments  2  of  the  top  3  deals  of   Largest  Deals  –  2011  2011  were  led  by    investors  outside  the  list   1.  BiocarRs  (CH)  –  USD  95.8.4m  of  25  most  ac&ve   3rd  largest  deal  in  Europe.  Also,  larger  than  #1  deal  in  the  West  Coast.    Syndicate  included  investors   over  11  investment  vehicles  including  family  offices,  strategic  investors  and  numerous     cross-­‐border  investors    The  top  3  deals  account   2.  Affiris  (A)  –  USD  34.4m  for  approx.  35%  of  total   8th  largest  deal  in  Europe.    Led  by  Santo  VC  (1,  Germany)  –  outside  top  25  investor  list  money  invested  in  the    region  in  2011   3.  F-­‐Star  (A)  –  USD  21.7m     9th  largest  deal  in  Europe.    Led  by  SR  One  (2,  USA)  -­‐  outside  top  25  investor  list  There  are  no  German  companies  in  the  top  3.    Germany’s  largest  deal  of   700   Amount  Invested  in  Region  (USDm)  2011  was  Europe’s  23rd   42%  largest  deal.    Germany   600   27%   30%   44%  has  tradi&onally  been  the   500   32%  joint  largest  investment   400  territory  in  Europe   300  (together  with  U.K.)   200   100   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  Europe   14  Source:  vmindex.com  
  16. 16. France  &  Benelux  -­‐  Top  25  Life  Science  investors   J-9K$(6>6+$*=%40%  of  the  biggest  names   !"#$%&( )$*+,-*(&$(% ./01.22 3/22didn’t  do  a  deal  in  the   !"#$!%&$"(%)("$#*+,)+" )-./-012345 67 8region  last  year   (+9%,$*:+%(;!$#+%<*,$=>%,? &023@- 66 8 ";&%));<*$#*+,)+" &023@- 6A B   :%C< D-1EFGH I 8158  investors  ac&ve  in  Life   %9%)<",$#*+,)+" &023@- I J &;+D%;)$(*#%,*!$#*+,)+" )-./-012345 K 8Sciences  in  the  region   (%($&%)*)( &023@- L Bover  5  years   +*"C>"$C($D%;C9%(*!$&>)9 )-./-012345 L J   MD($#+%<*,$=>%,? D-1EFGH L J ";(%,$:)+*!$*"",$C*)*:C),$ &023@- L J41%  of  all  ac&ve  investors   ,N>O*$(*#%,*! )-./-012345 L Bdid  1  deal  or  less  per  year   <%D$&!*)9+"$%),+>)%<+"%,?$%)",%,>,$&;+$D%;,(N D-1EFGH L 8 *>+%:*$#*+,)+" &023@- P Jover  the  last  5  years   C9"(%)("$(*#%,*! )-./-012345 P B   *D%):Q;+,N$C*)*:C), 4"5&$+675"8+9 R 632%  of  ac&ve  investors   *"(*#$<),>+ )-./-012345 R B D%;:)+*,%;)$<),>+" )-./-012345 R 6headquartered  outside   !(&$+;,N"(N%!9$:+;># &023@- R Jthe  region   #C<$#*+,%(%#*,%C**,"(N*##%O$<!**)9+) D-1EFGH R J D%;*C &023@- 7 J   (*%""$9$9#;,"$,$#!*(C),"$(;)"%:)*,%;)" &023@- 7 JOnly  32%  of  investors  are   (9($),+#+%"" &023@- 7 Bleads   :);#;! &023@- 7 J !+C$!%CD>+:"$+(;)<+"%C**,"(N*##%O D-1EFGH 7 B   D*M!*)9$&;)9" D-1EFGH 8 JCEOs  need  to  approach  all  the  right  investors  to   :;63<6=5>$6%?5$"?$65"#$%&(%6"&65"#$%&5"86($85"65"63/22 2/6@A/BCmaximise  the  chances  of  success  on  the  best  terms   ./01.22 !"#$"%#%& 3/22 !"#$"%#%& :&*=6=5>$6%?5$"?$65"#$%&(%6*?&5#$65"6($85" 2<D AE F$*+65"#$%&(% RA ()! 68 )*! !"#$%&(%6*#$(*85"86-;6&626+$*=GH$*( 68I ++! 88 ,*! I*(=H6%&*8$65"#$%&(% PR -.! 6R (.! J-9K$(6>6?(%%1K(+$(65"#$%&(% R6 ()! 67 )/! 15  Source:  vmindex.com  
  17. 17. France  &  Benelux  -­‐  Life  Science  Investments  All  3  of  the  top  deals  of  2011  had  non-­‐Top  25  lead   Largest  Deals  –  2011  investors  par&cipate     1.  AM-­‐Pharma  (NL)  –  USD  39.7m     5th  largest  deal  in  Europe.    Co-­‐led  by  Ysios  (3,  Spain)  and  Kurma  Biofund  (1,  France).  Both  The  top  3  deals  account   outside  top  25  investor  list  for  approx.  50%  of  total    money  invested  in  the   2.  ArGen-­‐X  (NL)  –  USD  36.7m  region  in  2011   6th  largest  deal  in  Europe.    Co-­‐led  by  Seventure  (1,  France)  and  Orbimed  (2,  USA).  Both     outside  top  25  investor  list    There  are  no  French   3.  AvanRum  Technologies  (NL)  –  USD  36.6m  companies  in  the  top  3.     7th  largest  deal  in  Europe.    Co-­‐led  by  Aster  Capital  (1,  France)  and  Sofinnova  Partners  (6,  The  largest  French  deal  of   France).    Aster  outside  top  25  investor  list  2011  was  Europe’s  10th  largest  deal   500   23%   Amount  Invested  in  Region  (USDm)   400   25%   20%   300   19%   200   15%   100   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  Europe   16  Source:  vmindex.com  
  18. 18. Scandinavia  -­‐  Top  25  Life  Science  investors   7-5N$(BDB+$*9%54%  of  the  biggest  names   !"#$%&( )$*+,-*(&$(% ./01.22 3/22didn’t  do  a  deal  in  the   !"#$%!&# ()*+*, - .region  last  year   /#01$23(/#45"6"$17"3% ()*+*, - 8 (#0(2#4(""5 39:);< = >   316146"3%?0"( 5*,@;:A B .105  investors  ac&ve  in  Life   (?3(%13"4&#2%#$ 5*,@;:A B C 235?(%02D135"3 ()*+*, E CSciences  in  the  region   (&#3523#62#34$2D"4(&2"3&"46"3%?0" ()*+*, E Fover  5  years   D2332(!4235?(%0G4236"(%7"3% DH,I;,+ > C   J$1K#$4$2D"4(&2"3&"46"3%?0"( 4$(5*"6 > F K#3/236"(% 5*,@;:A L F93%  of  all  ac&ve  investors   5#3(/423316#%213(236"(%"023J 5*,@;:A L Fdid  1  deal  or  less  per  year   23316#%213(/#2%#$ ()*+*, L Fover  the  last  5  years   $13715%#J"03"(45G0%25(D135 5*,@;:A L F 1(%"0(M1(%2D%"$("3 ()*+*, L F   6#"/(%D135"3 5*,@;:A L F36%  of  ac&ve  investors   5#3(/4/#2%#$#3$#"J4#/%2"("$(/#K 5*,@;:A 8 F J2$5"4236"(%7"3%47#3#J"7"3% 7$&8$(9*"+% 8 Fheadquartered  outside   235"N46"3%?0"( :;<&=$(9*"+ 8 Fthe  region   236"(%104J01O%!4&#2%#$ ()*+*, 8 F   $(4$2D"4(&2"3&"(4#0%3"0( 7$&8$(9*"+% 8 C 72501&43"O4%"&!31$1JG ()*+*, 8 FOnly  32%  of  investors  are   (""54&#2%#$45"37#0/ 5*,@;:A 8 Fleads   ("6"3%?0"4#0%3"0( >(*"?$ 8 F   (2%0# DH,I;,+ 8 C (1D23316#4#0%3"0( >(*"?$ 8 FCEOs  need  to  approach  all  the  right  investors  to   @AB3CB9<D$B%?<$"?$B<"#$%&(%B"&B<"#$%&<"EB($E<"B<"B3/22 2FBGFHIJmaximise  the  chances  of  success  on  the  best  terms   ./01.22 !"#$"%#%& 3/22 !"#$"%#%& @&*9B9<D$B%?<$"?$B<"#$%&(%B*?&<#$B<"B($E<" 2/C 3H K$*+B<"#$%&(% 8L ()! C8 *+! !"#$%&(%B*#$(*E<"EB-AB&B2B+$*9L6$*( -= ,(! C- -,! M*(96B%&*E$B<"#$%&(% 88 (.! - (/! 7-5N$(BDB?(%%1N(+$(B<"#$%&(% 8= (0! 8 .(! 17  Source:  vmindex.com  
  19. 19. Scandinavia  -­‐  Life  Science  Investments  All  3  of  the  top  deals  of   Largest  Deals  –  2011  2011  had  non-­‐Top  25  lead    investors  par&cipate   1.  Symphogen  (DK)  –  USD  132.4m     Largest  deal  in  Europe.    Also,  larger  than  #1  deal  in  the  West  Coast.    Co-­‐led  by  Novo  The  top  3  deals  account   Ventures  and  Essex  Woodland  (1,  USA)  –  Essex  outside  top  25  investor  list    for  approx.  50%  of  total   2.  Orphazyme  (DK)  –  USD  19.7m  money  invested  in  the   15th  largest  deal  in  Europe.    Led  by  Aescap  Venture  (4,  Netherlands)  -­‐  outside  top  25  region  in  2011   investor  list      There  are  no  Swedish   3.  NexsRm  (FI)–  USD  17.9m  companies  in  the  top  3.     19th  largest  deal  in  Europe.    Co-­‐led  by  Lundbeckfon  Ventures  (3,  Denmark)  and  The  largest  Swedish  deal   Ilmarinen  Pension  Fund  (2)  both  outside  top  25  investor  list  of  2011  was  Europe’s  28th  largest  deal   350   16%   300   Amount  Raised  USDm   250   15%   200   10%   150   10%   100   3%   50   0   2007   2008   2009   2010   2011   *  %age  figures  are  proporQon  of  total  amount  invested  in  Life  Science  deals  in  Europe   18  Source:  vmindex.com  
  20. 20. Conclusions  -­‐  I  •  Raising  venture  capital  is  never  easy  •  CompeQQon  for  investment  is  intense  and  it  is   global  •  Investment  frequently  comes  from  non-­‐obvious   sources  •  There  is  a  big  difference  between  percepQon  and   reality  among  VCs  •  It  is  too  easy  for  CEOs  to  waste  Qme  with  the  wrong   investors,  and  overlook  the  right  investors   www.vmindex.com   19  
  21. 21. Conclusions  -­‐  II  •  When  raising  money  need  to  differenQate  between   lead  and  follower  investors  •  Non-­‐domesQc  investors  are  increasingly  important  •  It  isn’t  just  VCs  who  are  acQve  in  Life  Science   invesQng  –  family  offices,  coporate  funds,  hedge   funds,  and  insQtuQonal  investors  are  all  acQve  in  the   sector  •  Very  few  investors  do  more  than  1  new  deal  each   year  –  it  is  a  ‘numbers  game’,  i.e.  you  need  to   approach  every  relevant  investor   20  
  22. 22. SecQon  2  STRATEGIES  FOR  RAISING  VENTURE  CAPITAL   www.vmindex.com   21  
  23. 23. Methodology  –  why  should  CEOs  plan  their  fund  raising   process?  A  fund  raising  strategy  is  essen&al  to  minimise   •  Fund  raising  is  a  Qme  consuming,  opaque,  and  disrup&on  to  the  business,  and  maximise  the  chances   commercially  highly  sensiQve  process  of  success  on  the  best  terms  in  the  face  of   •  Few  management  teams  have  extensive  and  up-­‐to-­‐intense  compe&&on  and   date  investor  experience  investors  determined  to  squeeze  valua&ons   •  Companies  don’t  run  themselves    The  team  behind  VM   •  Investors  have  only  1  focus:  get  the  deal  done  on  Index  have  developed  a  proven  fund  raising   the  best  terms  for  maximum  financial  return  methodology  based  on  decades  of  advising   –  i.e.  lowest  valuaQon,  best  exit  terms,  least  risk  possible  clients  on  raising  capial   •  CompeQng  against  hundreds  of  other  companies  for   the  same  pool  of  capital   www.vmindex.com   22  
  24. 24. PreparaQon  –  before  you  start  Taking  &me  to  plan  your  fund  raising  process   •  ExecuQve  summary  &  business  plan  allows  for  a  structured,   –  Short,  readable,  well  presented  with  financials  methodical  approach   –  Investors  are  looking  for  experienced  management  teams,  so  remember  to     include  biographies     –  These  documents  are  used  to  obtain  a  meeQng;  keep  them  brief  or  they  won’t  Iden&fying  all  the  right   be  read  investors  early  enables  you  to  control  and   •  IdenQfy  the  right  investors  manage  the  process     –  Who  has  the  right  experience  of  invesQng  in  Life  Sciences  in  your  locaQon?     –  Investor  websites  oxen  exaggerate  investor  interest  and  capability.    Where  did  All  investors  should  be   they  actually  invest  their  money?  assessed  for  suitability   –  Split  investors  by  leads  and  followers  before  you  try  to  get  a  mee&ng  with  them   –  Try  to  avoid  cold  calls:  research  and  use  co-­‐investment  relaQonships   •  Check  your  long  list  for  pornolio  conflicts   –  Which  investors  are  looking  for  compeQQve  intelligence  for  their  pornolio?   –  Also  idenQfy  investors  with  previous  successes  in  your  sector   www.vmindex.com   23  

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