Top 7 Biotech Investors Changing the Life Science Industry
Is your biotech company looking for funding? If so, you need to find a biotech investor that understands your unique business and industry.
Fortunately, there are a lot of great biotech investors out there.
For example, Rome Therapeutics partnered with Arch Venture Partners to raise $50 million. The company used this money to fund a new tool to analyze and sequence junk DNA.
In this article, we'll give you a quick list of the top medical device venture capitalists changing the life science industry. Use this list to guide your own fundraising efforts.
7 Biotech Investors to Prioritize During Your Next Funding Round
It’s no secret that instant cash flow from a life sciences venture capitalist will kickstart hyper-growth. But that's only if the money is managed effectively and you choose the right investor to partner with.
Partnering with the wrong investor can have you paying out way too much in interest or giving away too much equity. As such, it’s crucial that you develop a well-thought-out plan for investing the funding you receive. And you need to take the time to really compare investors and read the fine print, so you know what you’re getting into.
When comparing investors on this list, ask yourself these questions:
- How much money are they willing to give me, and what is the best plan of action for getting the highest ROI possible?
- How much am I going to pay in interest or give up in equity, and is that a fair amount?
- If you're receiving debt financing, how much are the payments going to be, and can the business realistically afford them?
- Am I giving away too many ownership rights, or is the investor content with being a silent partner — or not a partner at all?
1. ARCH Venture Partners
As a company started over thirty years ago, ARCH Venture Partners doesn’t follow the crowd. They prefer to have bold, imaginative risk-takers in their portfolios.
By taking a long-term approach, ARCH is flexible in its path to building companies. They invest $50,000 to $150 million in a single deal! Plus, ARCH has a vast network of partners to help you build from the ground up.
Hans Bishop, former CEO of Juno Therapeutics, speaks highly of ARCH:
“ARCH isn’t interested in a quick win. They’re committed to building truly transformational companies and understand that it takes more than one-time investment.”
An early-stage capital firm, Canaan, uses a personal approach to invest in visionaries with transformative ideas. They have been helping break the mold in scientific breakthroughs for over 30 years.
Going beyond just throwing money at a project, this company believes people aren’t only statistics. Their team offers a plethora of resources to companies in their portfolio, from helping you build your employee teams to find a way to bring your product to market.
Canaan treats its partners with honesty, transparency, and respect. They expect you to follow the “Golden Rule” and do the same. Doing so makes it easier for you to work without someone watching over your shoulder or scheduling meetings to check in on your progress.
This company likes to remain in the know without being in the way. By not having meetings to “see what is going on” or sending endless email surveys, Canaan Partners allows you to work without constant interruption.
“Even if Canaan hadn’t funded us, just going through the process with them—the discussions we had and the questions they asked—already made us a better company. And that’s amazing.” —Julie Wainwright, CEO of The RealReal
Founded in 1974, Sofinnova has been at the forefront of life science investigation, taking a particular interest in therapeutic drugs over the last decade. A clinical-stage biopharmaceutical investment firm, they invest in therapeutics-focused organizations, both public and private.
With approximately $2.2 billion in assets, they use their in-depth industry knowledge to improve patients' lives through science. Their capital is paired with their experienced, collaborative team to provide outstanding results for everyone: entrepreneurs, investors, and patients.
4. Flagship Pioneering
Since 2000, Flagship Pioneering has used its over $30 billion in aggregate value to foster and originate the development of around 100 science-based companies. Their company model combines several factors to produce first-in-category companies through a new and evolutionary methodology with a process they call pioneering.
By attracting, developing, and retaining top talent in management, science, and entrepreneurship, they deliver on their principle that teams do the best pioneering. Flagship Pioneering put their networking behind the principal founders, funders, and owners of the invested companies.
5. Life Science Partners
One of Europe's most experienced and largest healthcare investment firms, Life Science Partners, has a track record going back over 30 years. They have built up an investment house dedicated to only one task: growing, seeking, and nurturing healthcare investment opportunities.
Investing in organizations that have the potential to have a positive impact on society creates the most opportunity for all parties involved. To date, Life Science Partners has provided start-up funding for more than 200 companies, as well as the growth capital.
6. New Enterprise Associates
Being one of the world's most active and largest venture capital firms has made New Enterprise Associates develop insight and deep domain expertise into their industries of focus. The founding of this nearly 40-year-old company created the industry's first genuinely bi-coastal firm.
They use their capital to invest in startups in combination with a vast pool of resources and expertise. This firm has a proven investment strategy to help companies seeding innovations in emerging markets to funding companies just starting to get their feet wet.
"NEA stands out from other venture firms in two ways. The first is the breadth of experience brought by the entire team, and their willingness to collaborate. Venture firms tend to split into a collection of individual contributors, but NEA plays together as a well-rounded team. The second is NEA’s willingness to take on big challenges and help entrepreneurs achieve audacious goals." —Matthew Prince, co-founder and CEO of Cloudflare
The Chan family of Hong Kong founded Morningside in 1986. They operate with in-depth industry knowledge and are managed by entrepreneurial investment professionals.
Using venture capital and their private equity, they invest money in companies with medical science in mind, with a focus on philanthropic endeavors and preservation. Their significant funds help not only scientific means to help patients but also the world.
Maintain & Improve Your QMS While Working Remotely
In order to get funding, you need to ensure you have systems and processes in place that enhance your organization's quality management and safety.
As a medical device manufacturer or life sciences company, you have to comply with FDA and national regulations that govern every aspect of your business.
FDA software validation requirements have traditionally been cumbersome and expensive to adhere to, which led many companies to stick with paper-based methods for their quality management systems. With the impact COVID has had on the world, and the increased amount of data showing the safeness and efficiency of automation and technology, the FDA is releasing new guidelines that push companies like yours to switch from paper-based to electronic methods, such as an eQMS.
Watch our webinar to learn how COVID is impacting quality management and how you can maintain and improve your QMS while working remotely.