For Venture Capitalists



The Challenges for Venture Capitalists

It has become increasingly difficult for venture capitalists to successfully fund early-stage drug-discovery companies. The problems:
  • High initial capital requirements
  • Slow pace of discovery
  • Unfocused and inexperienced management
  • Lack of clear, reliable progress reports
  • Low success rate
Pharma Launcher reduces all of these problems.

Lower Your Initial Capital Investment

A traditional drug-discovery startup requires substantial infrastructure build out for the scientific support services required for drug discovery: medicinal chemistry, in vitro efficacy and ADMET, and in vivo preclinical research.
  • Costly capital equipment must be acquired. Once it is used it has little residual value.
  • Well-paid scientific personnel must be recruited. And if R&D is shut down, terminated employees incur layoff expenses.
  • Expensive lab space must be leased, typically requiring additional investment for leasehold improvements. And if the facility is shut down, those leases must continue to be paid regardless of whether the lab space is being utilized.
Pharma Launcher changes this economic equation by converting the largest portion of these expenses from overhead costs into marginal costs. Instead of building out all of these support functions, Pharma Launcher allows drug-discovery companies to outsource these services, allowing the company to pay only for what it needs, when it needs it. This economic restructuring allows drug-discovery companies to require far less capital to generate initial results.

Increase the Pace of Discovery

When you fund a scientific team to do drug discovery, you want them to be focused on drug discovery. Any other task they have to deal with delays results. By relieving the founders of the responsibilities for creating and then managing scientific support functions, they are freed up to focus on their objective: drug discovery. The more time, energy, and focus they can devote to discovery, the faster you get results.

Besides, it's unusual for good scientists to be good business managers too. All too many ventures have failed because their highly competent scientist founders were incompetent business managers.

Reduce Risk

Economic restructuring to reduce upfront capital requirements reduces financial risk. As does reducing the amount of management skill required for managing an early-stage drug-discovery company. And speeding the pace of discovery reduces competitive risks.

But Pharma Launcher does more than this. Pharma Launcher operates as a form of extended due diligence by giving investors objective, third-party validated reports on efficacy and pharmacokenetics, It';s all too-human for people to see only the information that confirms their discoveries and to ignore the negative data. By involving Pharma Launcher you remove the rose-tinted glasses through which the founders filter your data. If results are failing to meet expectations, you'll know about it sooner and more clearly, giving you a better opportunity to stop throwing good money after bad.

Contact Us

Learn more about how Pharma Launcher can help you make better investments. Contact us now.


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