Bioverge

Bioverge is an investment platform that funds visionary entrepreneurs with the aim of transforming healthcare and bringing science fiction to life.

Introduction

The Bioverge mission is to accelerate the development of solutions for intractable problems in healthcare. We accomplish this by democratizing the access, tools, and resources necessary to invest in and advance the most innovative emerging companies in the space.

The Bioverge platform is healthcare-focused and enables everyone, from family offices to investment advisors to accredited and non-accredited individuals, to invest in highly vetted healthcare startups at the cutting edge of innovation, and actively support each along their journey to transform healthcare.

Success To Date

  • Platform:
    • Successfully closed 32 deals across 21 portfolio companies
    • Closed 2 multi-company “Access Funds”
    • 186% year-over-year revenue growth in 2020
  • Portfolio:
    • 68% year-over-year growth in assets under management in 2020
    • 28% unrealized gross IRR
    • 100% of portfolio companies are still operating
    • 3 portfolio companies valued at $100M+
    • 1 company exit (Blue Mesa Health acquired by Virgin Pulse)

Problem

Startup investing historically reserved for professionals and the wealthy

For the last 80 years, only accredited investors could legally invest in private companies.

portfolio

During this time, the world’s most sophisticated investors have routinely sought exposure to private companies and for good reason: venture capital has consistently outperformed the public markets.

returns

Barriers to Entry for the Average Person

There are 3 key barriers that must be solved to level the playing field for everyone:

  • Lack of Awareness. The vast majority of people in the U.S. have never invested in a startup or private investment fund even though they are eligible to and it is advantageous for diversification and outperforming the public markets.
  • Lack of Access. Even if they might be aware of the potential benefits of investing in private companies, most people lack access to the highest quality companies and investment rounds, those opportunities capable of generating the highest returns.
  • Lack of Bandwidth/Expertise. Investing in early-stage, private technology companies requires time, expertise, and the ability to understand nuanced and oftentimes complex science and novel technologies, industries and business models.

Solution

Bioverge is Leveling the Playing Field

At Bioverge, we provide individuals with the opportunity to include alternative investments in their portfolios and take part in the biology revolution by investing in highly vetted healthcare startups at the cutting edge of innovation.

“For the first time in history, we can all now invest like the professionals”

We believe everyone should be able to invest in innovations that have the potential to improve the quality and length of people’s lives and fight the diseases most important to them, so we've built our platform to promote awareness, enable access, and help individual investors understand complex science and early-stage businesses.

platform

The Bioverge Member Experience

Our member community enjoys access to the same innovative health investment opportunities offered to clients of top venture capital firms. With Bioverge, that experience includes:

  • Professional sourcing - early-stage startups carefully chosen for their innovative vision, scientific validity, and growth potential. We accept less than 5% of prospective startups.
  • Meticulous vetting - specialized Bioverge diligence review and professional co-investor participation.
  • Exclusive access - opportunities that aren’t available on the open market.
  • Impact + Financial Returns - investment opportunities aligned with personal values that have the potential to impact the world.
community

Bioverge members are part of a community anchored by the Bioverge Network - a healthcare-specific grouping of strategic partners, advisors, subject matter experts, and institutional investors who enable us to maintain our rigorous standards and support our portfolio companies.

community

The Bioverge platform enables multiple investment pathways for members:

  • Bioverge Deals - investing into a specific startup of your choosing
  • Bioverge Access Funds - spreading a single investment across a diversified set of 10-15 Bioverge-curated startups
pathways

Since inception, Bioverge has invested in a portfolio of game-changing medical solutions that have the potential to save lives and generate financial returns, including:

medical-solutions

Our portfolio companies are backed by the best venture investors in the world:

venture-investors

Portfolio Highlights:

portfolio-highlights

(1) Gross IRR, marked as of March 31, 2020.
(2) Includes companies that are currently fundraising. Data include unrealized gains and potential milestone payments associated with exits that have not been realized. Valuation caps of SAFEs and/or convertible notes used as a proxy for valuations when applicable. Results are based on initial investment only and do not account for the impact of follow-on investments. Results are not audited. These results are not indicative of future results.

And we're just getting started! Our exploration of the frontiers of medicine continues, in search of disruptive technologies spanning the fields of gene editing and gene therapy, genomics, proteomics, artificial intelligence (AI), computational biology, digital health, artificial organs & tissue engineering, remote monitoring, regenerative medicine and others.

What Our Members Say About Us:

"Bioverge has been a great way for me to participate in early stage biotechnology and medical technology investments to which I ordinarily would not have had access. The Bioverge team has been very knowledgeable, accessible, and sensitive to my specific needs as an investor." - John H., Bioverge investor

“How do you manage to get the most solid biotech offerings? I'd like to spread the word as far as the quality of what you are doing - I know a lot of other investors in this area - and I also am just personally wondering how you do it!” - Alan J.

The Bioverge Company Experience

We connect founders with access to capital and tailored resources to empower them to push the boundaries of medicine.

Bioverge offers ongoing access to the Bioverge Network — a specialized community of healthcare expertise and resources far more valuable than any standalone investor or the transactional nature of our competitors.

Through the Bioverge Network, we are able to provide long-term value to the companies we work with. We stay in tune with their evolving needs and regularly plug them back into the Bioverge Network to tailor connections and help solve the challenges on their plate at any given point in time. Through this model, we have connected teams to subject matter expertise, potential partners, advisors, and hires, co-investors today, downstream investors tomorrow, and much more.

Our continued ability to access high-quality companies and deals remains a clear competitive advantage and differentiator for us. A major reason why we are confident this will continue is because of our focus on providing ongoing support to our portfolio companies before, during, and after our investment. This is counter to the transactional nature of most investment platforms out there.

Don't just take it from us, here's what Bioverge founders have to say about it:

matt-de-silva-quote
victor-chapela-quote
“Bioverge is one of my top sources of highly-curated biotech and healthtech investment opportunities. Their deal flow, diligence process and syndicate reach make me more comfortable investing in companies they back than many others. Once committed, I have also seen how Bioverge supports its portfolio companies. These qualities are unique in the early stage biotech/healthtech markets and appreciated by experienced angel investors like me.”
- Eric A., Bioverge investor

Business Model

Bioverge operates two core businesses with significant revenue potential:

core-businesses
  • Online Venture Capital. We have completed 32 investments to date via our syndication model which aggregates accredited investors into a Special Purpose Vehicle (SPV). That SPV will then either invest directly in a single company, or invest in multiple companies through one of our Access Funds. This is akin to traditional venture capital and limited to accredited investors. We typically charge investors an administrative and management fee for these services plus a carried interest in the total investment.
  • Crowdfunding Portal. This is a new business for us and one we are very excited about as it enables us to open up investment opportunities to non-accredited investors (~90% of the U.S. population). We charge companies a success-based transaction fee based on the amount of capital they raise through their offering from Bioverge investors.

Market

Online Fundraising

Traditionally, non-accredited investors were barred altogether from participating in private startup offerings, which is quite shocking because 90% of the U.S. falls in this category.

Regulation Crowdfunding (Reg CF), introduced in 2012 via the JOBS Act, opened up private investment opportunities that were previously restricted to accredited investors. Since 2016, 1700+ companies have collectively raised over $400 million via Reg CF.

According to the SEC, the private placements market was $1.8 trillion in 2017 as roughly 300,000 accredited investors participated in 23,000 offerings. In 2019, the market grew to $2.7 trillion (+25% CAGR).

While an impressive growth trajectory, relative to the 20 million accredited households in the U.S. and 110 million non-accredited households, this is just a drop in the bucket - we expect this trend to continue to accelerate.

An estimated $30 trillion is held in U.S. savings accounts. If just 1% of these savings were to be reallocated to private health companies, it would create a $300 billion market, 2.8x larger than today's entire venture capital market:

savings-accounts

In March 2021, the offering limit for Reg CF offerings is set to be raised from $1.07 million to $5.0 million. With this new change, the Reg CF pathway via funding portals like ours will become an even more attractive option for companies at various stages of growth.

According to a report by Goldman Sachs, finance is meeting the network effect. Technology and an increasingly social consumer are democratizing access to funds and services beyond the walls of financial institutions. With Millennials as important agents of change, new business models for crowdfunding, peer-to-peer lending, socialized payments, and automated investing are rising to take market share from existing banking channels."

crowdfunding

In addition, by 2030, we estimate that a key customer segment of ours - Millennials - will control $20 trillion in financial assets, 5x what they control today. Data from the same Goldman Sachs reports shows Millennials are less invested in stocks and are more likely to participate in crowdfunding.

The Rise of Impact Investing

  • Healthcare represents an attractive opportunity for investors who are looking to make a financial return and have a global impact.
  • We have all been first hand witnesses to the importance of healthcare innovation throughout the COVID-19 pandemic.
  • Bioverge enables each of us to invest in the health-related causes and diseases that we care most about.

Press

Team

Neil J. Littman, M.S.
Founder, CEO & Managing Director

Executive Leadership Team at $3B venture philanthropy organization. Formerly Vice President of Business Development at Notable Labs. Advisor on investment banking transactions totaling $1B+

logos

Neil was previously Vice President of Business Development at Notable Labs, an oncology focused startup and Bioverge portfolio company, where he led the development of global corporate partnerships and contributed to the strategic vision. Neil oversaw business development at Notable through the successful completion of the company’s $40 million Series B and was instrumental in negotiating multiple terms sheets to in-license clinical stage oncology assets.

Prior to Notable, Neil was a member of the Executive Leadership Team and Director of Business Development at the California Institute for Regenerative Medicine (CIRM). As part of CIRM’s leadership team, Neil helped develop the five-year strategic plan for managing and deploying CIRM’s $3 billion across the organization’s discovery, translational, and clinical stage stem cell and regenerative medicines programs. At CIRM, Neil was Head of the Therapeutics Group and oversaw a team responsible for managing over 40 clinical stage therapies totaling over $500 million of CIRM investment, including Forty Seven, Inc. (acquired by Gilead for $4.9B), Orchard Therapeutics (Nasdaq: ORTX), Cellular Dynamics International (acquired by Fujifilm for $307M), Sangamo Therapeutics, Inc. (Nasdaq: SGMO), Poseida Therapeutics, Inc. (Nasdaq: PSTX), and others.

Prior to managing the Therapeutics Group, Neil oversaw the Strategic Infrastructure Group at CIRM, managing a portfolio of $125 million supporting infrastructure programs including: $30 million Stem Cell Center (partnership with IQVIA); $24 million Alpha Stem Cell Clinical Network (partnership with UCLA, UCSD, City of Hope, UC Irvine); $32 million iPSC Bank (partnership with Fujifilm); $40 million Genomics Center of Excellence (partnership with Stanford).

Prior to CIRM, Neil was a healthcare investment banker at Thomas WeiselPartners and Deutsche Bank, working on transactions totaling over $1 billion. His primary focus was on strategic advisory and public and private financings.

Neil received a Master of Science in Biotechnology from The Johns Hopkins University, and a Bachelor of Arts in Molecular, Cellular and Development Biology from the University of Colorado, Boulder. Neil worked in a virology lab during his time at CU Boulder.

Rick Gibb
Founder, COO & Managing Director

Investment professional at Stanford’s $450M healthcare venture capital fund. Maintained portfolio of 300+ healthcare inventions at Stanford

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Prior to founding Bioverge, Rick worked at Stanford University’s Office of the CFO as a Senior Venture Fund Analyst where he was involved in the management and oversight of the President’s Venture Fund and Stanford-StartX Fund. Across both of these funds, Rick was primarily involved with investment sourcing, due diligence, and portfolio management, investing $450M in aggregate across more than 400 companies. This further included providing ongoing support by connecting them to elite talent, fundraising opportunities and strategic partnerships, as well as stewarding long-term strategic plans and operating roadmaps to achieve commercialization, a stronger innovation pipeline, and enhanced product-market fit.

Notable highlights include leading seed-stage investments into Personalis (precision medicine and cancer genomics company; co-investors:Lightspeed; NASDAQ: PSNL), Kodiak Sciences (antibody therapies to treat and prevent blindness; NASDAQ: KOD), Oculeve (ocular stimulation to treat dry eye disease; acquired by Medtronic), Genapsys(desktop DNA sequencing), HeartFlow (real-time digital modeling of coronary arteries; co-investors: Medtronic, USVP, GE Ventures; $1.5B+ valuation), and Orca Bio (cellular therapies to treat cancer and autoimmune disorders; co-investors: Lightspeed, Data Collective, 8VC).

Prior to this, Rick was a part of the Licensing team at Stanford University’s Office of Technology Licensing (OTL). The OTL receives and evaluates over 500 invention disclosures each year to assess their commercial feasibility and potential. Royalties from successful licensing are collected and distributed to the inventors, their departments and schools. At the OTL, he managed a portfolio of 300+ technologies across their full lifecycle to support them with critical expertise in IP strategy, marketing, business development, licensing, fundraising and commercialization.

Rick holds a Master’s Degree in Biotechnology from The Johns Hopkins University, and graduated from Rice University with a B.S. in Bioengineering and Biomedical Engineering.

Additional Team Members

Bioverge has a diverse and growing multi-disciplinary team, including:

team

Use of Proceeds


If the offering's maximum amount of $1,069,999 is raised:

UseValue% of Proceeds
General & administrative$428,04340.0%
Product development$321,03230.0%
Sales & marketing$268,49425.1%
Intermediary fees$52,4304.9%

Terms

Investors who participate in the offering on or before May 15, 2021, will receive an early bird discount and be able to invest at a purchase price of $1.14 per share, which equates to a $10 million pre money valuation; and investors who participate in the offering after May 15, 2021 will invest at a purchase price of $1.71 per share, which equates to a $15 million pre money valuation.

If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:

9,723,596 shares
×
$1.14 per share
$11,084,899implied valuation

Financials

These financial statements have been reviewed by an independent Certified Public Accountant.

SEC Filings

The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.

We’re also required to share links to each of the SEC filings related to this offering with investors.

Understand the Risks

Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.

Neither Netcapital nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.

The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

More Info

Updates

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