Fisonco slides Israel Oncology Fund to raise $150-200 million on LSE

WHEN ITS HARD TO DO IT LITTLE
DO IT BIG!
PRESENTING
THE FISONCO ISRAEL
ONCOLOGY FUND

FISONCO is pronounced Fission Co.
MISSION STATEMENT
• FISONCO will be an
• unique, LSE publicly-held, semi-blind pool Fund
• to provide extraordinary returns for its investors by making
significant, high-impact, needle-moving, investments in
• medium-stage Israeli oncology companies with a mechanism,
NASDAQ IPOs for medium-term high-multiple exceptional
exits.
• To attenuate risk and increase reward, the focus for
investment in cancer will be (i) early chemical/gene diagnosis,
(II)advanced imaging, (iii)medical devices and (iv)small
molecules rather than genetic engineering.
1/17/2016
FISINCO ISRAEL ONCOLOGY FUND
howard.david.sterling@gmail.com
2

Meeting the Challenges1:
a) For investors in new medical/healthcare
companies. We know that a huge amount is
being crowdfunded for medical companies.
See:
http://www.crowdmapped.com/cat/health-
and-medical/. However, crowdfunding is
missing the two critical pillars of investment,
diversification and liquidity. FISONCO will give
the investors these two crucial desideratums.
1/17/2016
3

Meeting the Challenges2:
• For the Israeli medical/healthcare companies.
Most are financed initially by angels to their
immediate needs, not to their opportunities.
They do not receive enough in any tranche to
make a light-year leap in their activities.
FISONCO, being public and therefore
evergreen will make a significant initial
investment in worthy companies and always
be able to join/lead the next round.
1/17/2016
4

Why Israel?
• Why Israel? Israel is ninth in the world in R&D
spending, $11 billion in 2015,and is well known to give
more "bang for the buck." For example, in my
experience, an Israeli late-stage dermatology company
spent $32 million before its NASDAQ IPO whereas a
Silicon Valley dermatology company at about the same
stage spent $187 million before its IPO. (See: Offshore
in Israel - High quality development at low cost
http://www.matrix.co.il/en/Experts/Pages/OffshoreinIs
rael.aspx
• and Why Israel is poised to soon lead medical device
industry growth,
http://marketrealist.com/2013/09/must-know-israel/)
1/17/2016
5

Why Oncology? 2
• Fear is the most powerful and paradoxically attractive
marketing phenomenon. And cancer is the most feared
disease.
• Despite all the progress we’ve made on cancer, a
recent Harris poll found that cancer is the most feared
disease in the U.S., 41% to Alzheimer’s 31%. (Only 8%
of American are most afraid of the leading cause of
death in the U.S., heart disease). That is hardly new. 40
years ago the National Cancer Act of 1971, which
declared “War on Cancer” said “…cancer is the disease
which is the major health concern of Americans today.”
1/17/2016
6

Why oncology? 2
• Moreover, the public perception is that the world is on the
cusp of a major breakthrough in cancer, and the public is
right and wrong. It is right that the immuno-suppression of
immune suppression is such a breakthrough enabling late-
stage patients to experience months of additional life. See:
http://www.jwatch.org/na38218/2015/06/26/immunother
apy-shows-promise-msi-high-colorectal-cancer The public
does not yet realize that early diagnosis, based on the 80-
20 rule (if catch cancer at early 20%, have 80% chance of
complete remission) is much better (see:
http://www.findcancerearly.com.au/why-finding-cancer-
early-is-important/) and Israel is a leader in this sector
1/17/2016
7

DESCRIPTION OF FISONCO
• . FISONCO will go public on an LSE IPO. The
target will be to raise $150-200 million. As a
model, two-thirds of the proceeds raised will
go into medium-stage Israeli Cancer
Companies (ICCs), Portfolio companies named
in the prospectus (PICCs); the rest of the
proceeds will be kept as "dry powder",
primarily to do another round for the PICCs
and secondarily to invest in new ICCs.
1/17/2016
8

ADVANTAGES OF FISONCO FOR INVESTORS 1
• The PICCs will be described (in summary and
objectively) so that the investors for the first
time for ICCs (compared to investing in crowd
funding) will obtain the two crucial pillars of
FISONCO investing:
• Diversification, and
• Liquidity
1/17/2016
9

ADVANTAGES OF FISONCO FOR INVESTORS 2
• In addition, uniquely, the FISONCO investors:
• Will know exactly where most of their money
is going, as compared to prevalent blind-pool
public and private venture fund investing;
• Will know what the FISONCO managers are
likely to invest in the future from the known
original portfolio of PICCs.
1/17/2016
10

ADVANTAGES TO FISONCO INVESTORS 3
• In addition, uniquely, the FISONCO investors:
• Will have a right of first refusal to buy the stock of the
PICCs, when the PICCs do their own (likely NASDAQ) IPOs:
(a) for up to 20% of the shares in the IPO, on a first come,
first served basis; (b) at a 10% discount from the IPO price.
This will have at least two positive consequences: i) The
NASDAQ underwriters will be pleased, putatively, to have
20% of the IPO spoken for, especially to the likely 1500
investors in the FISONCO Fund. ii) Since the FISONCO
investors are likely to have a profile that make it extremely
unlikely that they ever have a shot at today's NASDAQ IPOs,
it might make some of the investors buy the FISONCO stock
and become long-term shareholders of FISONCO.
1/17/2016
11

ADVANTAGES TO FISONCO LSE UNDERWRITER
• Since the FISONCO underwriting organization
which takes FISONCO public on the LSE will
likely have the ability to take the PICCs public
on NASDAQ, as an incentive to the
underwriter, possibly the underwriter would
have a right of first refusal or right of first
negotiation to do NASDAQ IPOs for the PICCs.
And the LSE underwriter will have had a long
history with the PICCs before they do IPO on
NASDAQ.
1/17/2016
12

ADVANTAGES OF FISONCO TO THE ONCOLOGY
PORTFOLIO COMPANIES 1
• They will receive from FISONCO a known,
significant amount of the critical and hard to get
"gap funding".
• Likely if FISONCO takes the lead and has the
expertise in doing the gap funding other VCs will
join FISONCO in the initial investment in the
PICCs.
• Since FISONCO will have a great and unique
reputation, it will be a mark of prestige for the
PICCs to indicate "A FISONCO Investee."
1/17/2016
13

ADVANTAGES OF FISONCO TO THE
ONCOLOGY PORTFOLIO COMPANIES 2
• The PICCs will receive a unique gift of
inestimable value. Usually, when a private
company makes a press release, it is like a tree
falling in a forest with no one to hear;
however in the case of FISONCO, the press
releases for the PICCs will be disseminated
through FISONCO, a public company. Thus the
PICCs press releases will be picked up as news
by Bloomberg, Reuters, The Wall Street
Journal.
1/17/2016
14

• The PICCs will also benefit from the provision
that 20% of their (NASDAQ) IPOs will be
"spoken for" by the Fund investors. How
unique that the PICCs will come to
underwriters with 20% of the deal "done"!
• How attractive to the NASDAQ underwriters
that 20% of the IPO will be taken up by
medium sized hedge funds and family offices,
the likely investors in FISONCO.
1/17/2016
15

• Another plan is for FISONCO's PICCs to have
seminars with Fund investors, putatively in
London twice a year. [Strangely, most investors,
like the Fund investors, never meet actual
companies; they buy stocks after speaking only to
their broker or financial advisors.] Through this
means, the Fund investors will learn in depth
about the PICCs, will get to know (bond with)
managements of the PICCs. So when the PICCs do
their (NASDAQ) IPOs, the Fund investors will be
knowledgeable and positive investors in the
PICCs.
1/17/2016
16

OTHER POSITIVES OF THE FISONCO
STRUCTURE
• FISONCO will have 1/2 of its funds in cash, "dry
power", to invest in the current accelerator
companies and perhaps some new companies.
• Since FISONCO is such a useful, if not crucial,
financing vehicle, (a) the first FISONCO fund will
be able to raise money on a secondary on the
LSE; (b) The managers will be able to raise serially
new FISONCO funds with different focuses.
1/17/2016
17

CHALLENGES OF THE FISONCO
STRUCTURE
• FISONCO is a pioneering structure so anticipate
unknown difficulties—however, Allied Minds and
Puretech on LSE have had successful IPOs and
follow on markets.
• Getting PICCs to sign MOUs is like herding
jaguars—however, the MOUs will not prevent
PICCs from doing other financing.
• Time and cost to complete LSE IPO—however,
faster and cheaper than if could do on NASDAQ
1/17/2016
18

SUMMARY
• FISONCO will be a WIN-WIN-WIN-WIN vehicle
for:
• Its investors;
• Its portfolio companies
• Its managers
• The Israeli oncology industry.
• Ultimately the oncology patients who will be
materially aided by the breakthrough medical
technologies in diagnostics, imaging & medicines.
1/17/2016
19

Fisonco slides Israel Oncology Fund to raise $150-200 million on LSE

Recommended

Recommended

More Related Content

Similar to Fisonco slides Israel Oncology Fund to raise $150-200 million on LSE

Similar to Fisonco slides Israel Oncology Fund to raise $150-200 million on LSE (20)

More from Howard Sterling

More from Howard Sterling (20)

Recently uploaded

Recently uploaded (20)

Fisonco slides Israel Oncology Fund to raise $150-200 million on LSE