Join The Top Angel Investors and Venture Capital Firms in Boston
The Angel Kings - Boston VC Firm
Who are the top 3 investors in Boston?
Elias Torres is focused on building the best engineering organization in Boston. He founded Drift, which is a software to help people live, work and create together. He's also invested in startups such as: Concord, Drafted and Mesosphere.
Dave Balter is the CEO of Mylestoned and a Venture Partner at Boston Seed Capital. His investments include well-known companies such as: Contactually, DraftKings, and AdHawk.
Jeff Bussgang is a former entrepreneur that is now an investor with Flybridge Capital Partners. His investments include: Mattermark, SimpleTuition and Plastiq.
If you're a Boston investor, where should you invest your money? BIOTECH.
Biotech and biopharma are two of the hottest sectors for VC investment, especially if you're an investor in Boston. There are always new ideas and if you have the patience to wait for the extended approval process, the rewards are great. On fact, Forbes recently reported that the weighted average return hovered in the neighborhood of 9X for pharma and biotech. The recent months have brought record setting business funding deal sizes and more VC funding than at any time in recent memory. According to Thompson Reuters, investors funded 202 life science deals with $2.75 billion during the last quarter of 2014 alone. While that wasn’t a record setting amount, it was darn close. Like most areas of investment, some areas within the sector are hot while others are not. Here’s a look at some of the hottest sectors and most interesting deals.
In 2014, two biopharma deals in particular were notable for their jaw–dropping returns. Roche Genetech bought Seragon for $725 million upfront with $1 billion additional in earnouts. Seragon makes treatments for hormone driven cancers, including breast and uterine or endometrial cancers.
In the second big deal, Johnson and Johnson bought Alios, maker of antivirals to treat respiratory diseases including the common cold, for $1.75 billion. Estimates are that both deal earned investors 20 X payouts.
Recent high dollar investments include two notable deals:
Moderna Therapeutics has been through five rounds and raised a total of $674.6 million. Investors include Wellington management, Viking Global Investors, RA Capital management, Alexion Pharmaceuticals and Flagship Ventures. Moderna Therapeutics develops messenger RNA molecules to provoke creation of antibodies.
Intarcia Therapeutics has been through nine rounds and raised a total of $534.3 million. Investors include GGV Capital, New Enterprise Associates, Venrock, New Leaf Venture Partners, Marker, Fred Alger Management Farallon Capital Management, Foresite Capital, RA Capital Management, Quilvest Ventures, Alta Partners and Omega Funds. The latest round of over $450 million occurred in January 2015. Intarcia Therapeutics develops therapies for long term chronic disease treatment.
You Want To Invest in Biotech?
Here are the Top Startups in Boston, MA
1. Unum Therapeutics
Universal cellular therapy. The concept is to mobilize T–cells to create antibodies directed to a tumor, sparing surrounding tissue. Unum is based in Cambridge Massachusetts. They received $12 million in Series A funding in October 2014 from three investors, including Sanofi–Genzyme BioVentures, Atlas Venture and Fidelity Biosciences.
2. Navitor Pharmaceuticals
Navitor Pharmaceuticals is a biopharmaceutical company developing novel medicines by targeting cellular nutrient sensing to regulate cell growth and functioning. Also based in Cambridge, Massachusetts, they raised $23.5 million in Series A funding in June 2014. Investors include SR One, Johnson & Johnson Development Corporation, Atlas Venture and Polaris Partners.
3. Intellia Therapeutics
Intella Therapeutics focuses on gene editing technology to treat genetic diseases. Located in the biopharma heartland of Cambridge, Massachusetts, Intellia raised $15 million in Series A fund in November 20014. The three investors included Caribou Biosciences, Atlas Ventures and Novartis.
Synlogic is creating therapeutic microbes to find and treat diseases. Once again Cambridge Massachusetts based, Synlogic raised $34.4 million in two rounds of funding. The most recent occurred in October 2014. Investors include the Bill and Melinda Gates Foundation, New Enterprise Associates and Atlas Venture.
5. Quartet Medicine
Quartet Medicine aims to use neural pathways to regulate pain and inflammation. Also in Cambridge, Massachusetts, Quartet has been through one round of financing in October 29014. They raised $17 million from Pfizer Venture Investments, Novartis Venture Fund and Atlas Venture.
6. Voyager Therapeutics
Voyager Therapeutics is working on CNS–focused gene therapies for central nervous system diseases. Voyager went through its first round of funding in February 2014, raising $45 million from Third Rock Ventures. It is also located in Cambridge, Massachusetts.
Editas is using genome editing to create precise corrective molecular modifications that could be used treat a variety of diseases. In November 2014, Cambridge, Massachusetts based Editas raised $43 million in its Series A funding from partners Innovation Fund, Third Rock Ventures, Flagship Ventures and Polaris Partners.
8. Caribou Biosciences
Caribou Biosciences is working on cellular engineering for use in industry, agriculture and therapeutics. Based in Berkeley California, Caribou has been through two rounds of funding, raising $2.9 million from a single investor, Novartis. It is notable that Caribou invested in Intellia.
9. Scholar Rock
Scholar Rock uses a new class of biologic niche modulators to selectively target disease by regulating dysfunctional cell growth. This Cambridge, Massachusetts firm had four investors for its first round of funding in September 2014. The $20 million came from EcoR1 Capital, Kraft Group, Polaris Partners and ARCH Venture partners.
Emulate is creating organ functionality on a chip to enable simplified and faster clinical trials. First round funding from Cedars Sinai Medical Center and NanoDimension raised $12 million for this Cambridge Massachusetts company in July 2014.
Nortis is creating tissue-engineered micro-environments for an alternative to in-vitro and animal testing. Nortis received $12 million in July 2014 from undisclosed venture investors. That followed from a March 2014 infusion of $1.2 million also from an undisclosed venture investor.
Lysogene focus is to use gene therapy to target rare and severe central nervous system pathologies in children. The company recently entered a partnership agreement for continued research and collaboration with University of Massachusetts Medical School and Auburn University in Alabama. Lysogene received $22 million in Series A funding in May 2014. Sofinnova Ventures was the sole investor.
Who are the top 3 investors in Boston?
Now that you've seen the amount of money these biotech companies received...
How Do You Know Their Start Up Valuations?
5 ways to value a startup
Evaluations and startups is one of the enigma wrapped in an enigma. It's a tough process, but we're going to break it down for you at Angel Kings so that when you're looking to invest in a startup, you know beyond the people, the product, the execution and timing of the startup, what are the financials in putting into your term sheet.
1. Berkus Method
The Berkus Method is based on this guy, Mr. Berkus, who decided to say evaluations are estimations so he assumed that companies should be worth around ... Or be worth roughly $20 billion within five years. The Berkus Method is just one of the evaluation methods that investors can use.
2. Comparable Method
What that is is you take the enterprise value and you compare that to the sells and really what it is, it's just like buying a house on a street and finding out what the value is you look at a similar house on the same street to find what's called the comp. The comparable method is another way to value Startups.
3. The Risk Factor Method
You take several layers and several metrics and evaluate the risk and it breaks it down ... The Risk Factor method breaks down into management, risk, and then exit strategy. We detail more of that on our site, but it's yet another way to value Startups, The Risk Factor method.
4. Discounted Case Flow (DCF)
DCF, as it's better known.. now the issue with valuing Startups with the DCF is you have to have a lot of historical data, a lot of historical numbers to determine what the startup would be worth. It's not used as much as opposed to publicly traded companies, but it is another way in which you can value Startups.
5. Asset Based Valuation Method
Taking all these five in place from the Berkus Method to the Discounted Cash Flow, what's the best way to value a Startup? At Angel Kings, we value startups in what we call the Best in Class Scenario.
You'd look at a seed round of, for example, Slack App, an enterprise app, and you'd say, "Well, what's another company that ended up going public valued at at that same time?" Another thing about the Best in Class Method at Angel Kings is you're able to see it a startup and what it's final exit strategy or possibility would be. If you're going to invest as we do at Angel Kings in another user based growth company such as LinkedIn, you would look to see what are the users valued at on the public market.
In particular with LinkedIn, now that it's publicly traded, you look to see what are those monthly active users, what are the metrics behind them? Whatever you do as an investor, pick one, there's really no wrong way to go along as you're using the Angel Kings formula of people, product, execution and timing, you can't go wrong. We don recommend that you don't just pull it out of a hat and try to value a startup, you have to have some methodology.