Steve Flaim, Why Angels Don't Do Drugs
Why is new drug discovery is less attractive to angel investors?
There are exceptions to everything, as Steve Flaim describes. Steve's the President of the Tech Coast Angels' San Diego network where they operate a Life Science screening process separate from Software and IT. With all this experience, Steve sees 2 types of Life Science deals: new drugs and Bio-Tech. One will offer quicker exits for less investment.
This is part 1 of a 2 part series on Angel Investing 101 where you'll hear Steve debunk many rookie angel investing strategies.
Show #294 (33:55) Listen
Comments
Thank you for posting the interview with Steve Flaim.
I am the CEO of a drug discovery company that has raised significant $ from angels and believe that Steve's comments were not entirely reflective of the realities of this market place. There are certain therapeutic areas of focus, like Alzheimer's disease, where partnering deals are done relatively early and, more often than not, these funds are provided as partnering revenue to support the furtherance of the program and upfront/milestones. Importantly, there are significant sources of additional non-dilutive capital available from foundations and Government funding organizations to get to a partnering event. Exits can also be nearer term for companies with a critical mass of drugs in late preclinical/early clinical. Pharma is completely outsourcing true development and this leads to fairly early and robust exits for certain therapeutic areas.
I would like you to consider setting the record straight and would be willing to discuss this with you off line or on your show.
Thank you.
Posted by: Hank S. | June 3, 2010 11:05 AM