Sofinnova Partners’ Post

Navigating Risks and Opportunities in Biotech Investing In the fast-paced world of biotechnology investments, having a strategy for capital deployment isn't just important—it's crucial! Here at Zentynel Frontier Investments we are a fund that bets on emerging markets, which inherently come with significant growth potential but also greater risk. This risk arises not only from political instability but also from exposure to foreign exchange rates and the unfamiliarity of these new territories. However, simply dividing investment strategies between emerging or mature markets is not enough. A second crucial distinction lies between diversified strategies and specialized funds. Our fund is specialized, and while this may seem counterintuitive, we believe specialized funds better serve Limited Partners (LPs) because they allow LPs to perform their own diversification by choosing experts in specific fields. At the end of the day, specialists possess deep industry expertise, robust networks built over decades, and generally achieve superior returns based on these factors. The challenge arises when fund managers or investment themes are so specialized that it becomes difficult for an LP to discern between a genuinely good investment and one that merely claims to be. Regardless of the strategy, the key is to seek out companies that are tackling real, substantial problems—preferably on a global scale. These companies should have a proven, exceptionally compelling solution that stands out. Such irresistible solutions significantly increase the likelihood of acquisition at a profit. It’s essential to have a team that can turn this vision into reality, a clear and achievable regulatory path, and intellectual property protection that not only offers a competitive edge but also ensures operational freedom. Moreover, the capital we invest should propel these companies toward significant milestones, and ideally, there should be a history of successful exits in the industry space to anchor our exit strategy. To wrap up, while this might all sound very dichotomous—nothing in venture capital is purely black or white. If we could wave a magic wand for the ideal conditions, these would be the minimum requirements. Let’s not forget that venture capital is a business where saying 'no' happens far more often than saying 'yes'. Pablo Fernandez Gumucio, Roberto Loehnert, Cristian Hernandez-Cuevas, Bernardita Méndez Velasco, Dr. Pablo Valenzuela. #BiotechInvestments #EmergingMarkets #SpecializedFunds #ScienceAndBusiness #VentureCapital #InvestmentInsights #ZentynelVC

Excellent overview of local biotech investors in San Diego. What's driving growth of more life science investment capital? Exits. Because local exited money is recycled locally into new investments in new companies. Which is what we need on the software side too, exits and local investors to re-invest, and what we hope to be getting ahead of with Interlock Capital. Well done Fred Grier!

The biotech industry is gearing up for an exciting year, as highlighted at JPM’s Biotech Showcase. Key takeaways include: • Positive investment outlook, with a significant recovery seen in M&A and IPO activities. • Plan strategically for funding, and engage investors effectively. At Ambrosia Ventures, we’re enthusiastic about these developments and committed to driving growth and innovation in life sciences. Here’s to a transformative 2024! #Biotech2024 #AmbrosiaVentures #InvestmentTrends #Innovation

As one of the most awaited business gatherings, Investors Roundtable in Vienna, draws near, a unique opportunity arises to meet the team at Evergrowth BioHealthcare Advisors, operating under the umbrella of Evergrowth BioHealthcare Capital. This exclusive event brings together distinguished investment firms from around the globe, offering a platform for networking and collaboration. Evergrowth BioHealthcare Advisors, headquartered in Delaware, emerges as a pioneering force in the realm of biotech hedge funds. With a unique edge in binary event forecasting, the firm strategically invests in innovative clinical-stage and early product-stage public biotech equities, delivering hope to patients worldwide while generating superior returns for investors. Led by Harvey Tran, M.D., M.S., Founder, Board Member, Chief Executive Officer, and Chief Investment Officer, Evergrowth BioHealthcare Capital epitomizes excellence and innovation in biotech investing. Dr. Tran's visionary leadership drives the firm's success, positioning it to outperform market benchmarks and deliver exceptional value to its stakeholders. Limited seats are available, REGISTER NOW! Contact: rsvp@theabrahamicbusinesscircle.com / +971 50 865 3204 Dr. Raphael Nagel (LL.M.) #Entrepreneurship #Startups #VentureCapital #Economy #investing #markets #money #fundraising #business #networking #biotechnology #healthcare

Delving into the Venture Capital Trusts Annual Report 2024 reveals the critical role of VCTs in empowering the next wave of UK businesses. It's an eye-opener and a testament to the power of tax-efficient investing. A must-have in every investment professional's arsenal. For investment professionals only. Capital at risk. #Innovation #TaxEfficientInvesting

The first half of 2024 saw a 77% jump in venture capital (VC) funding for pharma and biotech sectors, as reported by Knight Frank. Q2 attracted £559m, up 46% year-on-year in terms of deal value and 81% above the 10-year quarterly average, making the life sciences sector the third largest sector in the UK by deal value. Knight Frank predicts this is likely to boost lab and office demand, with leasing and investment volume forecasts for the Golden Triangle area encompassing London, Oxford and Cambridge. During our London at #MIPIM2024 panel ‘Where are London’s life sciences hubs?', Cllr Elizabeth Campbell, Leader, London Councils commented that MIPIM is the place to be as it “gives the life sciences sector a larger chance to grow and thrive by attracting foreign investment and securing strong collaborations”. #GrowingSector #Investment #Science Read more: https://lnkd.in/gUpWTMBC

We're witnessing a pivotal transformation in VC, particularly within the #biotech sector. Traditional investors (pension funds and family offices) aren't just negotiating for favorable terms these days – they're seeking equity stakes in VC firms. This shift signals more than just changing investment strategies; it's a barometer of evolving investor confidence in a landscape where fundraising is increasingly challenging for VCs. That's especially true when it comes to companies where #AI and #biology converge. From my perspective, this trend is significant for everyone, not just those of you in finance or biotech. Consider the critical role biotech firms play in propelling healthcare innovation. Their ability to develop new treatments, drugs, and groundbreaking technologies hinges largely on funding. The dynamics of this funding don't just influence the trajectory of medical advancements; they potentially set the pace. When pension funds and family offices channel investments into these high-risk ventures –– ESPECIALLY when those investors don't understand what, exactly, they're investing in –– there's a direct link between their bets and everyday people. Which means that your retirement fund or family savings could now be tied to the success of experimental biotech firms. I want to see a lot more capital flowing into #biotech, but I want it to come from experienced investors who either have a scientific background themselves or who have brought on a board of people who understand the science. https://lnkd.in/eARxTGFf

Biotech Investors Refuel in 2024! "Flagship Pioneering, the sprawling life sciences investor and startup incubator, appears to be seeking more capital than originally planned for its eighth fund. The Boston-area firm is raising up to $3.5 billion, versus a $3 billion target outlined last November, according to documents from a pension fund that has invested in Flagship’s funds. The pension fund, Massachusetts Pension Reserves Investment Management , or Massachusetts’ PRIM, is committing up to $60 million to the fund, and other repeat investors have also ponied up: The Texas Municipal Retirement System (TMRS) committed $75 million and the State of Michigan Retirement System committed $200 million...." ARCH Venture Partners Foresite Capital TCGX Decheng Capital #venturecapital #capital #funding #financing #celltherapy #genetherapy #cellandgenetherapy #advancedtherapies #regenerativemedicine #lifescience #lifesciences #biotech #biotechnology #lifescience #lifesciences #investors #investment #funds

Many thanks to CELS - Canadian Entrepreneurs in Life Science for the opportunity to have DealForma speak at their recent event. We provided an overview of current trends in life sciences investing. Here’s a quick glimpse of the talk from yesterday. Venture capital funding in the Healthcare and Life Sciences sectors saw an increase in Q1 2024, particularly from a few large funding rounds, totaling $12.4 billion compared to the full year of 2023 which was at $40.8 billion. Specifically, the Biopharma subsector contributed significantly to this rise with $6.5 billion in Q1 2024, up from $23.4 billion in the full previous year.

Happy to share that Qiming has won multiple titles in the 2023 Annual InvestorCN Investment Rankings. This annual list is composed of institutional lists, industry lists, and individual awards. Qiming secured Best Startup Investment Institution, Best Investment Institution in Healthcare and others, and our Founding Managing Partner Duane Kuang was acknowledged as Best Startup Investor and Investor of the Year; Managing Partner William Hu won Best Investor in Healthcare. #QMawards #ChinaVC #bestVC #investorawards #venturecapital #investorrankings