On 10 November, Angels in MedCity held its final event of 2016 bringing together investment-ready businesses with life sciences specific angel investors. Since the programme launch in February 2015, we have held seven pitching events, helping 43 healthcare/life sciences companies to raise equity funding from our community of business angels, with £10m being invested so far.
The companies pitching were selected from a pool of over 30 companies and spanned a range of sectors including digital health, biotech, medical devices, regenerative medicine and Health IT. The selected companies received pitch-readiness training and neither participating companies nor investors in this investor showcase programme were charged any front end fees.
The pitching sessions were followed by a drinks reception with the opportunity to network and to allow investors to ask their follow-up questions and find out more about the businesses.
Please see below short descriptions of each of the six companies from last week’s event. Each of them are currently raising between £300k to £4m. If you are interested in any of the companies or want to be included in the invitation for the next event, please contact Patrick O’Brien. The next pitching event will be held on 26 April 2017. Details will be posted here and on http://angelsinmedcity.org.uk/.
Find out more about the funding that companies have raised since the programme launch here.
This early stage company operates within orthopedics and aims to deliver three core product offerings; first a coating solution to enhance longevity of implants, second a point of care solution for coating implants in the theater room and finally a “doped” drug delivery of protein, cells and biologics to help the body repair itself. The global musculoskeletal disorder market is worth over $1.2tr. The company is protected by a family of patents and animal results show a 1,500% improvement in bone integration. The company is raising, in order to: scale up team, attain preclinical validation and early clinical efficacy trials for product offering, increase production capabilities and continue intellectual property filing. These funds will help grow the business over the next two years and roll out their implant application.
Cellesce operates within the organoid generation market, having found its niche through its ability to create a bioprocess that allows for the production of organoids at commercial scale. This potentially provides an opportunity for the company given that the current method yields wide batch to batch variations and is a very labor intensive and expensive process. The potential market of organoids in cancer drug discovery could be worth £750m p.a. at maturity. The raised equity will be used to fund the scientific and technical team, bring on board a Business Development Manager and develop/validate a product line of colorectal organoids (among others). The funds will help grow the business until Q3 of 2017, where a series A funding round is expected to take place.
This early stage company operates in the point of care cancer diagnostics market, having developed a rapid, accurate and cost-effective point-of-care system for identifying healthy/benign biopsies. This offering can cut the time taken to sift out health/benign samples from several weeks to minutes, and can ultimately alleviate the bottlenecks by reducing the number of samples sent to pathology by 47%. The company is awaiting its UK patent, and given that the test presents no additional risk to the patients, points towards a favourable regulatory path. Each unit offers both a large cost reduction and revenue generating potential. This company is looking to raise equity to fund a 200 patient first in-clinic trial, manufacture its first functional prototype of biopsy holder and roll out a fully operational, bug free and tested software. The funds will help growth the business over the next year, where a Series A round is expected afterwards in order to expand clinical trials and target different types of cancers.
The Electrospinning Company
This revenue generating company operates within biomaterials, specifically within electrospun nanofibre membranes that are designed to help the body repair and regenerate its own tissue. The company has developed expertise in the design and consistent fabrication of clinical grade electrospun materials, which is protected by trade secrecy and supported by ISO 13485 quality certification. The company can boast being the only manufacturer of electrospun materials in an FDA-approved medical device and had year end revenues (to June 2015) of £600K (including grants). The company has expanded its product offering by striking deals with a large customer for two of its rotary cuff products. In particular, invested equity will be used to fund additional staffing resources and enhance production capacity. The funds will help grow the business over the next two years, and is expected to allow the company to achieve break-even in Q4 2017.
Clustermarket offers an online sharing platform where research institutions and companies can list and search for assets that include but are not limited to expertise, space, equipment, technology, reagents and services. This company offers a clear solution by connecting medical equipment holders with equipment users at a fraction of current costs, especially given that 30% of lab equipment based in universities is neither utilised nor accessible for external users. The equipment/facility sharing between universities and external users was worth £163M in the UK in 2014 (with CAGR of 8.2% since 2010) and $41bn is spent a year worldwide on lab equipment. The company is looking to raise with use of proceeds to commercialise their platform. The funds will help grow the company over the next 18 months and the company is expected to break even in 2018.
accuRx operates within the diagnostics market, with the sole purpose of eliminating inappropriate antibiotic use, in order to help tackle antimicrobial resistance. The company is aiming to build a data-driven rapid diagnostic test, which is based on a feedback loop that gives treatment advice by optimizing for patient outcomes. Staggeringly, by 2050, antimicrobial resistance will reduce GDP by up to 3.5% and cause the deaths of nearly 10 million people per annum, which provides this company the possibility of solving this well documented problem. This company is raising quity which will be used to further develop, validate and bring to market one of their key products, bring another product to trial stage and hire four key personnel.