STRATEGY

Realizing the potential of device technologies in cardiovascular and orthopaedic medicine

BioStar Capital has honed its investment strategy over nearly two decades of successfully identifying and advising innovative medical device companies. We make investments based on the following criteria:

 

Target Markets

BioStar is focused on medical device technologies in cardiovascular and orthopaedic medicine.

Proprietary Technology

BioStar Capital invests only in companies that have unique, disruptive technologies which we believe to be commercially patentable. Depending upon the stage of investment, a Freedom to Operate letter may be required.

 

Pathway to Acquisition

These technologies must also have clear regulatory pathways and defined reimbursement strategies and be of pre-determined interest to large med-tech companies.

 

Ability to Serve as Value-Add Investor

BioStar Capital seeks investments in which it can play a significant role in the clinical plan, device design, or regulatory strategy, often by having one of its Medical Venture Partners (MVPs) serve on the scientific advisory board (SAB). This allows the portfolio company full access to our expertise and gives us the ability to better support its management team as challenges arise.

 

Potential Inflection Points for Exit

BioStar Capital seeks to maximize its return on investment by financing companies whose life cycles are characterized by clear inflection points for exit. These might include, but are not limited to: device design path freeze, proof of concept, and completion of animal studies or commencement of the first human feasibility trial. Ultimately, our goal is to ensure that all stakeholders (investors and management) are aligned for exit prior to commercialization.

 

Capital Efficient Opportunities

Furthermore, BioStar Capital often invests in companies that do not expect to build sales and marketing teams but rather are specifically focused on developing a technology that can be sold at a healthy premium to a company which already has the requisite commercial organization in place. As BioStar Capital reviews a technology, we pay close attention to the opportunity for an efficient use of our invested capital by management, ensuring that there are multiple viable opportunities for a profitable exit.

BioStar Capital Encourages Entrepreneurs to Apply for Funding

BioStar looks for technologies that:
 
Have clear regulatory pathways and defined reimbursement strategies
 
Are of interest to major medical device companies (strategics in the space)
 
Address unmet physician/patient clinical need and/or economic need
 
Have the potential to improve quality of life and longevity or fill human medical needs in a cost-effective manner