Angel/SEED/Startup/Series A Fund Management | Entrepreneurial Services | Advisement | Consultation
The Phase I-II Fund (to be named) is scheduled to be the largest fund offering of FBS. The Fund is intended as a $200 million fund composed of 12 to 15 early stage biomedical companies that have already received sufficient funding to reach the late pre-clinical stage, and are ready for Phase I and/or Phase II clinical trials. The Fund will provide the selected portfolio companies with three or more years of additional financing, with quarterly payments made against reaching semi-annual agreed milestones in order to continue funding. The objective is to lift the burden from the entrepreneur-scientist of continually seeking his next round of funding so that he/she can meet stated goals. By the end of three to five years of Fund support, the portfolio company should be well into or through Phase II with the FDA. At this stage they should be ready for a buyout, joint venture, license agreement, IPO or additional financing, and should be at or near a profitable exit for the Fund investors.
Fund management will select and nourish the best available companies likely to produce an optimum revenue stream or exit for investors over three to five years from the licensing and/or sale of drug, diagnostic and device candidates, primarily to large pharmaceutical companies.
The Phase I-II Fund’s “Financing Strategy” is designed to take advantage of very promising developing companies emerging from the newly established Florida research facilities as well as a variety of other universities and research institutions. The pro-rata investment and vesting of equity structure based on obtained milestones gives investors a diversified investment opportunity to participate in a group of early and mid-stage developing biomedical companies under one umbrella. This diversification reduces and spreads the investor’s risk among several opportunities
The Fund intends to maximize the creative role of each entrepreneur-scientist, providing the company with adequate equity funding for three years. FBS intends to provide these portfolio companies with the necessary capital and supporting managerial services while maintaining strong cost controls. FBS will be represented at their Board of Directors’ meetings. The Fund’s consultants, and members of the Fund’s SAB and BAB will also be available to provide assistance.
FBS is creating a unique format for Angel investors that we call SEED. SEED (that stands for Science, Environment and Energy Developers, Inc.) is designed as a unique structure that will provide start-up and very early stage companies a means to raise capital and obtain a limited amount of managerial overview and scientific advice. Contrary to normal “angel” groups, SEED will be provided 4-10% of equity of a start-up company in exchange for a best-efforts program to raise early capital. Accredited investors indicating their interest in “seed” angel and early stage opportunities will be presented information on companies that have undergone a science and technology screening before presentation. Attending investors will receive from SEED a very small amount of shares of the companies presenting, thereby establishing the legal relationship required for them to continue to communicate and attempt to “sell” their private placements to these investors. Successful SEED companies will draw additional investments from these accredited investors.
Some companies raising SEED capital may also be portfolio companies in the second round, Sovereign Anti-Aging Fund. Others may prefer not to be associated with a fund for their own reasons. SEED round investments are typically $250,000 to $1.5 million, and may be spread over a number of months against agreed milestones.
The Sovereign Anti-Aging Fund (SAAF) is designed to be an early stage interdisciplinary biomedical fund with emphasis on funding companies whose research and/or product line has demonstrated efficacy in extending healthy cell life, or reverse the age-related changes that occur to tissues throughout the body. The “disease” of aging is believed to lead to the chronic disease state generally accepted by allopathic medicine as normal, with all the costs and debilitating quality of life involved. Regenerative medicine is a growing specialty based on scientific advancement resulting from the mapping of the human genome. Using stem cells, removing damaged cell tissue and other clinical therapies may allow certain genes to be re-programmed to delay or eliminate the normal shortening of the telomere length on the end of human chromosomes, resetting the aging “clock” and minimizing the chronic illnesses that are today so prevalent. The goal is to establish longer high quality life, and saving a major portion of the astronomical costs associated to the chronic disease state.
SAAF is designed as a private offering of $30 million. SAAF will consider biomedical opportunities that have the possibility to make serious reductions in the cost of medical care, such as advanced lasers, low frequency electromagnetic devices, low cost diagnostics, nutraceuticals, supplements, botanical medicines and other anti-aging treatments, as well as biologics related to regenerative medicine. Clinical evidence of combined treatment modalities and preventative medical approaches will be considered, as well as treatments that might be developed outside the USA. SAAF could be a second or third round source for companies developed through SEED.
FBS management is currently reviewing the technologies and business plans of a number of companies that may qualify for either SEED or Sovereign Anti-Aging Fund financing. Several of these companies have received substantial NIH funding, and are ready for initial clinical trials. Those companies could normally qualify for inclusion in the Sovereign Emerging Biomedical Fund except that they need less money to progress to commercialization than most Sovereign Emerging Biomedical Fund companies. Other candidates are already generating some income as nutraceutical firms or electromagnetic and/or laser firms with outstanding science and growth potential. Summary information and science data is available on these companies for qualified accredited investors.