We are committed to being as transparent as possible about our investment process, which we have laid out below. Even if we do not ultimately fund you, we will do our best (given time constraints) to be helpful. Where possible, we also try to make select platform partnerships available to all applicants, regardless of the investment outcome.
- Our process typically takes 8 to 12 weeks from start-to-finish. Once an application is received, our investment team conducts an initial review. If we believe your company may be a fit, we will reach out to schedule an introductory call within 5 business days. If your company isn’t a fit right now, we’ll let you know in that timeframe as well.
- During our initial call, we’ll learn more about your company, as well as answer any questions you have about our firm or process. Usually, within one week of this call, we’ll let you know if we plan to proceed, and if so, you’ll receive a data request from us.
- Our initial data request will involve submission of standard investor-requested documents (e.g., budget, company formation docs, cap table). If appropriate, we’ll also ask you to provide some brief high-level technical and scientific information about your business so we can begin our peer-review process. After the initial data request is complete, you’ll also receive a brief diligence questionnaire with some more detailed follow-up questions.
- If we move forward after reviewing your submissions, we’ll hold two webinars (45 minutes each) where FundRx Venture Partners will learn about your company and ask follow up questions of your team.
- While we may deviate from this process in exceptional cases or where time-constraints exist, almost all companies we fund go through this process. Our sincere intention is that the evaluation phase of our process be mutually beneficial – as our Venture Partners have highly relevant expertise to the companies they evaluate, most applicants gain significant insight from their feedback.
- Upon conclusion of the evaluation phase (usually four weeks after your initial application), our investment committee will do a concluding review and let you know if we’d like to proceed.
- We are not a traditional VC firm. As a virtual venture capital firm, we partner with a consortium of investors (family offices, corporate investors, and high-net-worth individuals) to aggregate their capital into a special purpose fund solely for investment into your company. Venture Partners who can provide valuable guidance and support to your company will also co-invest alongside this group.
- If we decide to move forward after our initial evaluation, all of FundRx’s limited investment partners will receive information on your deal. If there is substantial interest, you’ll participate in final investment conversations which may include some follow-ups from our limited investment partners. Pending final review, an investment decision will be made.
- For the purposes of your cap table, investment from FundRx is generally only one line-item – regardless of how many our investment partners participate in the deal.
- We generally aim to make pro-rata investments in our portfolio companies’ future financings. If we invest in a follow on round, the investment will be made through a new, single purpose FundRx vehicle.
Capital is only one type of support we provide to our portfolio companies. We work hard to actively provide any resources our entrepreneurs need as they build their companies.
- Our Venture Partners, made up of 2,000+ leaders across the healthcare and life sciences industries, provide valuable guidance and connections, both formally and informally.
- All portfolio companies have access to our partnerships with CROs, regulatory consultancies, suppliers, distributors, and hospital systems.
- Where appropriate, our team may also provide ongoing operational and management support to certain portfolio companies.
- We invest in private healthcare and life science companies of all types, including pharmaceuticals, medical devices, biotechnology, diagnostics, healthcare IT, and healthcare services.
- We consider investments in companies based in the United States, Canada, the United Kingdom, and Israel. In exceptional cases, we will consider companies outside of these geographies.
- We typically do not lead deals, with certain exceptions. However, we encourage applications even if you have not yet secured a lead and/or are still determining terms.
- Due to the sheer number of applications we receive, our policy is to not enter into confidentiality agreements during the initial phases of our evaluation process. In the event you have unique concerns where you would like us to consider deviating from this policy, please reach out to our team to discuss how we might proceed.
If you are interested in learning more about our process, please get an introduction from a mutual connection.