Editor’s Note: I am temporarily unable to invest in new companies on SeedInvest due to investing too much in the last 12 months. (“Based on your previously inputted financial information, the maximum Regulation CF investments you can make in a twelve month period is $3000 and your current total is $3600. This means you will not be receiving investments for companies raising under Regulation CF until your twelve month Regulation CF investment total is under your current limit.”)
In the meantime, while I will continue to write deal memos (and experimenting with the format,) I also wanted to give full disclosure that decisions at the moment are hypothetical. I will note the reactivation of my SeedInvest Auto Invest account once the 12 month period passes this summer.
Now, back to your regularly schedule programming…
Biotech firm raising Series C round of $1MM at a $32.4MM pre-money valuation. Recently received patents for Alpha-2-Macroglobulin (A2M) a protein injection for ameliorating the development of osteoarthritis, and CYT-108, the synthetic and v2 version of A2M. Has been in business for 10 years and founding team primarily does surgery and teaches Jiu Jitsu.
- Really high valuation, at this point no longer capitalizing on any advantage as an individual investor (larger institutional money is happy to beat out individual investors, dollar for dollar, on safer deals.)
- The leadership in the team and aligning of incentives isn’t what I’m used to in early stage startups. Spending less than $200k in salaries tells me this is more a mature business than one for fast growth.
- As a general rule, I should probably not be investing in biotech companies, the exception being great investment terms or models/problems being addressed that I’m more familiar with.
The 11 Calacanis Characteristics
Passed on 6/11.
|1. Syndicate lead has >5 years investing and >1 unicorn investment||Fail|
|2. A startup that is based in SV||Fail (Jupiter, FL)|
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