Researching Global Investors Michael Quigley, Director of Research, Life Science Nation

Transcription

1 Researching Global Investors Michael Quigley, Director of Research, Life Science Nation 2015 by Life Science Nation

2 Outline and Objectives 1. Identifying new potential investors 2. Understanding and determining investor fit 3. Understanding different investor types 4. Identifying the best contact and what to send

3 Where to Start? Give me six hours to chop down a tree and I will spend the first four sharpening the axe. -Abraham Lincoln

4 Basic Boolean Operators AND OR Search this exact word or phrase Both of these words or phrases Either or both of these words or phrases - (Minus Symbol) Does not contain this word or phrase intitle: filetype: Contains this word or phrase in title Search by file type Used in Google search bar to increase precision of searches Customize the search to your opportunity Try multiple different searches for best results

5

6 Best Sources for Investor Leads Investment conferences Financing rounds/press releases Similar companies websites Check the board of directors LinkedIn

7 Utilizing LinkedIn Frequently updated LinkedIn users open to new opportunities Boolean enabled Advanced search feature

8

9 Outline and Objectives 1. Identifying new potential investors 2. Understanding and determining investor fit 3. Understanding different investor types 4. Identifying the best contact and what to send

10 Identify Capital Providers I-Banks, consultants often try to appear as investors to generate more business Look to see if they have portfolio companies Networks and Advisors often don t invest themselves Check other sources

11 Who is Currently Allocating Recent new investments Fund vintage < 5 years ago Recent conferences Press releases

12 Sectors of Interest Devices, therapeutics, diagnostics, healthcare IT Subsectors Indications Often found on investor website Management experience Portfolio companies About section Press releases

13 Investment Size and Stage Previous investments Website (portfolio companies) Press releases Device vs biotech phases Plays into investor type

14 Geographic Exposure Previous investments Conference locations Size of investment Smaller investments tend to be more regional 45% 40% 35% 30% 25% 20% 15% 10% Mandates by Geographical Exposure 38% 19% 15% 10% 7% 7% 5% 2% 0% USA Global Western Europe Canada Eastern Europe Asia Other

15 Investor Fit > Referral

16 Outline and Objectives 1. Identifying new potential investors 2. Understanding and determining investor fit 3. Understanding different investor types 4. Identifying the best contact and what to send

17 Investor Types 40% 35% 30% 36% Mandates by Investor Type 25% 20% 21% 15% 10% 5% 9% 8% 8% 5% 5% 3% 2% 2% 0%

18 Venture Capital Raise funds from multiple outside parties Tight exit timeframes Initial investments of $1-$10 million Financially motivated Seed, venture, and growth stages

19 Private Equity Raise funds from outside parties Larger than VC funds Have longer timeframes Initial investments from $5million $100million+ Financially motivated Venture, growth, expansion

20 Family Offices Manage funds on behalf of one or more families/individuals (SFO,MFO) Huge variation in investment size Philanthropic/strategic/financially motivated Gaining interest in direct transactions Seed, venture, growth, expansion

21 Corporate Venture Capital Invest funds on behalf of company Have long timelines and deep pockets Investments sizes from $1-$50 million Strategically motivated Tend to look globally Seed, venture, growth

22 Angels Individuals investing personal capital Often in larger groups Investments size from $10,000-$2million Tend to focus regionally Financially and philanthropically motivated Seed, venture

23 Venture Philanthropy Philanthropic organizations investing directly Both equity and grants Allocations from $10,000-$2million Philanthropically motivated Tend to look globally Gaining interest and traction direct investments Seed, venture

24

25 Outline and Objectives 1. Identifying new potential investors 2. Understanding and determining investor fit 3. Understanding different investor types 4. Identifying the best contact and what to send

26 Identifying The Appropriate Contact Associate/Principal Keywords in job description Deal sourcing, Identification, Screening Backgrounds in Technology Area Utilize LinkedIn for common connections

27 Finding Contact Info Investors website LinkedIn Advanced google search Call main line Ask secretary

28 The Initial Who, what and why Keep it brief Include attachments Follow up!

29 Sample XXX, My name is John Smith, CEO of Company XYZ. Company XYZ is an early stage therapeutic company developing (Insert major value proposition Tagline). Company XYZ is currently raising a $10 million Series A financing to support development of our lead asset for Indication. Sentence on why you are interesting to this specific investor. I have attached an executive summary and pitch deck for additional information. If it makes sense for your investment strategy, I would like to organize an introductory call to discuss this opportunity further. I will be in touch shortly to gauge your interest and availability. I look forward to speaking with you soon. Best regards, John Smith

30 Call References Portfolio companies Ex employees I-bankers

31 Thank You