A good way to identify a match with us is to view our portfolio. See deals we have funded - exits and current portfolio.

Products and Technologies

We invest exclusively in the full spectrum of healthcare discovery and delivery:

We are often the first money in after grants and friends-and-family investment. We like disruptive technologies. We are risk-takers.

Locations of our Deals

Our investments are incorporated in the United States when we in invest. We have occasionally invested in deals started outside the United States; however, do not apply unless you already have a US incorporation. We have funded many companies outside the San Francisco Bay Area, but they almost all have had significant financial commitment from their trusted local investors. We like companies that have gained the confidence of local investors.

Successful Deals

Our successful deals have several of these characteristics:

• Non-dilutive grants - NIH, SBIR, etc.

• Friends-and-family money that have led to significant company progress.

• Milestones that justifies valuations of $3M or more.

• Strong evidence of proof of the science or product: in vitro, animal, preliminary human, proof of concept prototype.

• Publications, non-provisional patent applications, granted patents.

• Licenses from universities or research institutions.

• Disruptive ideas than can change the paradigm for solution to medical problem.

• Overwhelming economics, 5X or more cost or performance improvement.

• Team with outstanding professional accomplishments in their field.

• Liquidity path in 3-6 years.

Deal Pricing

Angel groups with long-term success usually have deals that return 20X or more to compensate for the deals that don’t work out. Except for special circumstances, we usually look for 15X or more return potential in a deal if things work out favorably. Although this may sound like bad news when you apply, it is good news for our invested companies. It shows our members believe in a big vision for the company and the team.

We do invest in deals with special circumstances where liquidity through a sale, merger, or IPO is near-term and the company needs funds to make a stronger deal in the exit. Many of the companies we have invested in at early stages return for this top-off investment before exit later. There must be excellent evidence that these exiting deals will be complete and this last investment is “Last In, First Out”.

With the help of your prior investors and advisors, you should be able determine a range of price that you consider fair and in conformance with the investment marketplace. You can look at realistic exit points and values and work back to project investor returns are at various valuations.

Deals that start well outside what our members consider the range-of-fairness usually do not advance because no member wants to take on price negotiations that get the relationship with the entrepreneur off to a bad start. We like to be colleagues with the company and the team. We try to get general agreement on pricing early in the process. Due diligence then leads to the final price. In almost all case, the entrepreneur has to set the initial price. This has to be done very early in the process because we lack the resources to due diligence a deal only to fund after much work that we are too far apart on price.

Deal Constraints on Amounts

Our investment decision is made by individual members voting with their checkbook. The individual member investments must total $200k. There is a $10k minimum for individual investors. It is up to you to encourage our members to invest.

We have historically had an average of about 1.5+ follow-on investments in our companies. The investment minimum for an individual LSA member in a follow-on is $5k and there is no minimum total for the investors together. Members with a prior investment in the company receive priority in case there is more investment demand than is available.

You may well have a winning product, but we just do not have members interested in your technology and market. In this case, LSA members are encouraged to invest as individuals even when our minimum is not reached.

Referral of Deal

You are advised to reach out to LSA members you or your colleagues may know and who are interested in your deal. Most of our invested deals have been referred by an LSA member. Perhaps you have met the LSA member at a pitch presentation. When they know about your deal, ask them if they would be a referral member.

Hot Deals

You may also ask the member if they will work with you to designate this deal as a "Hot Deal" to be expedited. A member will only do this after a careful consideration of your deal including review of all materials and usually in-person meetings.

Two Screening Committees

We have two screening committees: Biotech and Genomics ("Bio/Genomics") Committee and Device and Digital ("Device/Digital") Committee.  

The Bio/Genomics Committee includes:

• products the FDA would classify as drugs

• diagnostic products.

The Device/Digital includes:

• products the FDA would classify as medical devices

• a wide variety of digital solutions. 

We fund life science tools companies and other ventures that require FDA approval and those that do not. We try to match the expertise of members with the product area of the company. If there is any ambiguity, talk to the initial contact person you get from the company to determine the appropriate committee.

How We Help

We provide several benefits to entrepreneurs (see below).  We believe the substantial technical and experience level of our members, who all specialize in healthcare, makes us a good choice for your funding. In any case, we believe fundraising from a professional group of Angels or VCs is a very important step for startups and should be seriously considered. The benefits of Angel funding are:

Funding and Credibility: Angels bring the cash you need now. We believe funding from Life Science Angels adds credibility to your company that is valuable for recruiting, customers, and further fund raising.

Third Party Valuation: Startup companies often start with subjective valuations used for friends-and-family money. This often overstates or understates the market value of the company’s equity. In fairness to the friends-and-family and entrepreneurs, it is a good idea to bring in money with a valuation negotiated with a third party.

Advice and Mentoring: The advice and mentoring is free and comes from many, many years of members’ experiences - strategic, scientific, funding, IP, recruiting, legal personnel, sales, financial, etc.

Connections: Our members have contacts useful for developing future customers, recruiting, fundraising, and all aspects of building a business. We can give referrals for professional services to organizations that have served our portfolio companies well - corporate legal, IP legal, accounting, regulations, CROs, contract manufacturers, etc.

Ongoing Partnership: We like to provide a board member or strategic advisor to the company. We historically have provided 1.5+ rounds of further fundraising. We like to work with our portfolio companies over time.

Articulating Your Message: The process articulating a strategy and business plan for a startup is difficult and competes with the urgency of day-to-day operations. We find companies that articulate plans and revise them on a rolling basis have a clarity of purpose and unity of action that leads more often to external investment and success.

Lifestyle or Growth Business: When we invest, we expect to see a growth company with a liquidity event. Many entrepreneurs want a business they can control fully and plan to rely upon consulting income and slower growth.The entrepreneur needs to be clear in their minds the avenue they are taking.