2 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Venture Capital / “Capital Riesgo” concept
3 Venture Capital and financing of healthcare companies J.Sanfeliu
Glossary
Investment stages - Venture Capital / Private Equity
4 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Venture Capital model
5 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Legal VC Structure
Management Fee
Ysios BioFund I (FCR)
Investors
Ysios Capital Partners S.G.E.C.R,S.A
Ysios Capital Partners SGECR SA
Ysios Partners
Supervisory Board
Comité Asesor (Ciencia, medicina, Desarrollo de negocio)
Comité de Inversiones
PORTFOLIO
Carried Interest
….
6 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
In a nutshell
Fund – Ysios BioFund I: € 69 million (2008) – Ysios BioFund II in fund raising: € 100 million (2014)
Objectives Ysios BioFund I
– Invest in 10-12 companies in Human Healthcare Life Sciences (Tx, Dx, Medtech)
– Balanced portfolio in terms of business areas and development phases – Special focus on Spain and based in Barcelona
Management Team – Partners: Joël Jean-Mairet, Julia Salaverría, Josep Ll. Sanfeliu – Team of 6 investment professionals
Co-investors
Portfolio companies
7 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
…a changing ecosystem
TRENDS NEEDS
Innovation convergence
Access to new synergic knowledge
Market Access pressures
Value-added innovations / real benefits/savings to system
Innovation GAP and patent expirations
Access to “outside” core know-how
Unproductive acc. wealth
Activate financial resources
ESTABLISHED COMPANIES EMERGING COMPANIES NEW ECOSYSTEM
NEEDS TRENDS
Multiangle perspective and market validation
High complex innovation and R&D
Strong excellence network (“outsourcing”)
Capital efficiency in asset management
Supportive solid financing
Long-term value driven financing
Cross discipline expertise (clinical, regulatory, etc)
Hard Market-Access environment
P A R T N E R S H I P S EXIT &
RETURNS
8 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Venture Capital model in Healthcare (Life Sciences)
The Economist – Sept. 2008
McKinsey Quarterly December 2011
9 Venture Capital and financing of healthcare companies J.Sanfeliu
Seed Capital & Business Angels
Venture Capital
Value enhancing partnerships
Ris
k
Valu
e
Time
• Management Team • Intellectual Property • Clinical Validation • Health economics • Market Access
Exit for investors
Ysios Capital Partners
Value reflects scientific and clinical risk (products)
10 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Portfolio Strategy Ysios Biofund I
Risk
Innovation
Therapeutics
Medtech
Diagnostic
BioVex
AM-Pharma
Stat-Diagnostica
Endosense
Cardoz
MedLumics
SabirMedical
Tigenix
Inbiomotion
CVRx Medical
11 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Investment Criteria to choose and focus on returns
Management team Track record and relevant industrial experience, key people in the field
Product(s) Attractive market and sustainable competitive advantage, indications
Milestones Product development milestones and/or realistic commercial validation (≤ 3 yrs)
Organization Simple and flexible, minimizing non-value adding overhead costs
Strong entry barriers Solid intellectual property with freedom-to-operate
Exit Realistic exits (M&A or IPO) within 4-6 years from investment
Leadership in investments
Lead or co-lead investor in first rounds of financing
Valuation Reasonable pre-money in relation to degree of maturity, risk, and additional financing needs until divestment
Investment agreement Milestone-driven investments, ratchets
Corporate governance Favorable structure
Syndication Syndicates in large rounds of financing shall include top-tier biotech VCs
12 Venture Capital and financing of healthcare companies J.Sanfeliu
Ysios Capital Partners
Valuation?
Valuation methodology:
– NPV Based on DCF: • Discounted cash flows for NPV • Risk Adjusted NPV (rNPV)
o TA o R&D stage
– Ratios • Comparable companies ratios: • Employees • R&D Budget to pricE
– Comparable transactions
– Venture capital – Exit in 3-5 years – R&D Budget required
Venture Capital and financing of healthcare companies
Thank you. Josep Ll. Sanfeliu Managing Partner [email protected]
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