Investment Stage: BioStar Ventures invests primarily in seed to early stage medical technology companies. That being said, as unique opportunities arise, investments may be made in later stage companies to provide a diversified and more rapid return on investment.
Ability to Serve as Value-Add Investor: In virtually all of our portfolio companies, BioStar Ventures has played a significant role in the clinical plan, device design, or regulatory strategy. We seek our opportunities where we can play an active role in these areas, and where a portfolio company can leverage the expertise of and access to our MVPs.
Proprietary Technology: BioStar Ventures invests only in companies that have unique and proprietary technologies which we believe to be commercially patentable. Depending upon the stage of investment, a Freedom to Operate letter may be required.
Capital Efficient Opportunities: BioStar Ventures often invests in companies that do not expect to build sales and marketing teams but rather are specifically focused on developing a technology that can be sold at a healthy premium to a company which already has the requisite sales and marketing teams in place. As BioStar Ventures reviews a technology, we pay close attention to the opportunity for an efficient use of our invested capital by management, ensuring that there are multiple viable opportunities for a profitable exit.
Target Markets: The performance of BioStar Ventures first fund demonstrates the ability of our team to invest in high quality cardiovascular, biomaterials, orthopedic and gastroenterology technologies. The Fund plans to continue to make investments in these four sectors as well as in the various neuroscience subspecialties.
Opportunity for Scientific Advisory Board Role: BioStar Ventures prefers to invest in early stage companies where one of its MVPs can assume a role on the company’s SAB. This is preferred (albeit not required) because it allows BioStar Ventures to have immediate knowledge and impact on the device design and clinical strategy efforts as issues evolve.
Clear Inflection Points for Exit: The Fund seeks to maximize its return on investment by financing companies whose life cycles are characterized by clear inflection points for exit. These might include, but are not limited to: device design path freeze, proof of concept, and completion of animal studies or commencing the first human feasibility trial.