bioVenture has announced the completion of raising 2billion second phase fund.
On March 24, 2017, bioVenture hosted the investor conference on the lakeside of Jinji Lake to announce the completion of the second fund raising which has exceeded the expected capital raising scale. Including the newly completed fund, bioVenture is managing two RMB funds totaling about RMB 2bn.
It is understood that bioVenture focus on early and long-term medical health programs It is located in BioBAY to cover the whole country and global market. The investment of 39 quality projects has been completed, mainly involving new drugs, innovative medical devices, precision medicine and other fields. In the conference, Chen Jie, the founder and management partner indicated “from the perspective of return of investment, we have achieved fairly good results, the value of projects invested by the first phase fund has increased by 2.15 times, with an annualized revenue up to 43.7%. ”
Chen Jie, the founder and management partner of bioVenture
Chen Jie expressed the gratitude for the recognition on the investment achievements over the past year from each party of venture capital industries "I would like to thank every investment institutions and each investor for the support and recognition on our team and management capability. In the past year, bioVenture has been awarded with multiple industry honors, which indicates that bioVenture is reaching China's top medical treatment investment fund.
Dr. Lin Yi, the management partner of bioVenture
Subsequently, biology exploration had the honor to interview Chen Jie, the founder and management partner and of Dr. Lin Yi, the management partner of bioVenturebio Venture, to understand their strategy for the second phase fund and secrets on choosing projects.
2How to spend nearly 1.4 billion for the second phase fund?
Dr. Lin Yi, the management partner of bio Venture explained to us that bioVenturebio has launched the second phase fund in April 2016, which lasted 11 months, with a plan of 800 million yuan. The result has exceeded 70 percent of our target. Thanks to the trust and support of each investor and unremitting efforts from our partners and staff', Phase II funding officially closed in February 2017 with a total capital of nearly 1.4 billion yuan.
Based on three-year investment period of the fund, investors will fund at the proportion of 40%, 30 %, 30 %. In view of the current progress of projects and investment , the investment will probably be finalized two and a half years in advance.
The standard to choose projects : to solve clinical pain point
The main fields of bio Venture’s current involvement include new drug creation, innovative medical devices, in vitro diagnostic/precision medicine, medical services (CRO/CMO/specialized hospital), etc. "Our top priority when choosing a project is whether it can address the clinical pain points," said Chen. ”
The new drug research and development projects invested by bio Venture includes Pioneer Pharmacy found by two ‘one-thousand’ experts Dr Tong Youzhi and Dr Guo Chuangxin. It is a high-tech innovation enterprises committed to anti-cancer drug research and development. In 27th Feb 2017, the company held a ceremony of working to be listed on NEEQ and successfully landed on 12th December. The research and development products include prostate cancer drugs and the breast drug pukrumide which are in phase II clinic trial. It has won the subsidies of ‘China’s 12th five-year major new drug innovation’.
The new diabetes drugs PB - 119 developed by Paige Biology which is another new drug R&D enterprises invested by bio Venture has recently been selected into ‘China’s 13th five-year major new drug innovation project’. The drug is used once a week to thus to improve the compliance of diabetes treatment. Moreover, the treatment cost is only 1/3 of the imported drugs. Dr Lin Yi said, "we have been dealing with Paige for many years and have invested for both phase 1 and phase 2 fund. We are optimistic about this project, as well as the team because Dr Xu Min the founder is a man keeping promises".
Since 2014, bio Venture has entered into the field of precision medicine. The projects they have invested into include Kang Liming, Bei Kang, IDA kang, Shu Wen and etc. Kang Liming is the leading non-invasive colorectal cancer screening company in China. The founder Dr Zou Hongzhi is the first inventor of the non-invasive screening technology for colorectal cancer approved by the US FDA. Speaking of the project, Chen clearly remembers that "In the Chinese New Year’s Eve of 2015, the team was still discussing with Dr. Zou Hongzhi, who is abroad, about the specific cooperation schemes."
Reasonably assess the value, don't "gamble"
Recently, China has speed up the whole approval process of the new drug. The CFDA has invited Dr He Ruyi who had been responsible for the review and approval work of new drugs in United States FDA as the chief scientist. We have learned a lot of FDA's management experience and process. On March 17, the CFDA issued a consultation paper to encourage the new drugs in foreign countries to conduct clinical trials domestically in parallel in order to shorten the time gap for new drugs on market in and out of China and to meet the public's clinical development of new drugs. Dr Lin Yi indicated that the current environment is good for new drugs and the release of consultation paper encourages us to invest into new drug projects globally.
In contrast to the past, entrepreneurs are more likely to have access to angel rounds or A round of financing as capital has poured into bio-medicine over the past two years. Sometimes, some startups can even get extremely venture investments at hundreds or thousands of times of its value.
In Dr Lin's view, the valuation of the company and the future growth are closely linked. Giving start-ups a reasonable valuation is more important than high valuations. For companies that grow by between 5 and 10 percent a year, it is dangerous to give high valuations in the first place, which is as scary as boost and kill . But companies that annual growth rate can maintain 30 to 50 percent, it is reasonable even if they are highly valued. "For projects that are overvalued, we tend to be conservative or even evasive and don't gamble," says Mr Chen.
Fast follow on（Fast follow on）
"In the field of new drugs, projects of ‘me too, me better/fast follow on ' which can quickly follow up international research and developments are given priority. In the third periods of clinical trials or products have been on the market comparing to the original drugs have more improvement on the efficacy, safety, and the mechanism and the targets have been verified, thus failure rate and risk will be smaller. In terms of medical devices, we mainly focus on import substitution of high-end equipment. We hope to bring the advanced technology and products from Europe and America into China and quickly transform it in China.
Chen Jie considers on the way of innovation, the first thing for domestic enterprises to do is may not being entirely original but quick followup and import substitution as the advanced medical equipment and drug R&D can generate a great productivity and returns.
Be patient and let the bullets fly for a while
It is a long term process for investment into biological medicine and medical equipment. Both partners form bio Venture suggested, ‘our LP needs to be patient and so do our investors and the company entrepreneurial team. Just like riding a good horse, it would be a pity for our investors to get off as soon as they get on it.’