Case Study: University Biotech Spinout
Background. Two researchers at Vanderbilt University had discovered a link between certain diseases and a frequently-undetected type of infection. They had also developed proprietary technology for diagnosing and treating that infection, and had presented this information to a Boston-based entrepreneur. The entrepreneur had become enamored of the technology and had licensed it from Vanderbilt. We were hired to form, manage, and finance the company which received the license.
Activities. We sized the market opportunity and competitive environment, prepared investor materials, and raised $350,000 from Angels and more than $600,000 from Vanderbilt to support continued development of the technology. We worked closely with the inventors to focus their efforts in ways which would enhance the investability of the company. We also hired and worked closely with patent counsel to create and enhance a large and broad IP base. Finally, we successfully recruited seasoned senior management for the company and arranged a joint-development agreement with the Mayo Clinic. As a result of our work, the company was positioned to close a $3M round of financing from a small private equity fund.
Status. The company raised more than $30M from private equity but closed after its Phase II trial failed.
Activities. We sized the market opportunity and competitive environment, prepared investor materials, and raised $350,000 from Angels and more than $600,000 from Vanderbilt to support continued development of the technology. We worked closely with the inventors to focus their efforts in ways which would enhance the investability of the company. We also hired and worked closely with patent counsel to create and enhance a large and broad IP base. Finally, we successfully recruited seasoned senior management for the company and arranged a joint-development agreement with the Mayo Clinic. As a result of our work, the company was positioned to close a $3M round of financing from a small private equity fund.
Status. The company raised more than $30M from private equity but closed after its Phase II trial failed.
