We bring selected projects in the four areas of technology platforms, biotechnologies/therapies, medical technology (health technology), and artificial intelligence in the life science sector and digital health to the next stage of development.We lead these projects from the very beginning after an invention has been made and typically commercialize them after two to three years by, e.g., a trade sale, by entering into a joint venture with an industrial partner or by outlicensing patents.For the identification, selection and development of our projects, we benefit from our growing network with universities, clinical centers and research institutions.Typically, we incorporate a separate Portfolio company for each project. Currently, we have a portfolio of 22 Portfolio Companies, in which we hold at least a minority stake. More information about these Portfolio Companies can be found here.
Our strategy is based on the following pillars
Focus on early-stage companies
We focus on innovations at the stage when they are sold or outlicensed from a university, clinical centers or research institutions and lead our Portoflio Companies through their first stage and plan to exit after the preclinical proof of concept phase. We face limited competition at this stage which enables us to choose among the most promising projects.
Identification and selection of highly promising innovations which have the potential to be successfully commercialized and make a contribution to society
Every innovation is typically first assessed by the department for coordination and the university committee, which provides a recommendation. Based on this first assessment, selected members from our Advisory Board evaluate each project and submit a recommendation to our Board of Directors. The Advisory Board uses a scoring matrix to evaluate a project to ensure consistency across all reviewed projects. Based on the recommendation from our Advisory Board, our Board of Directors will assess the project from a commercial perspective and will take a final decision.
Comprehensive support of Portfolio Companies by a highly experienced team
A Portfolio Company benefits from a comprehensive support from our Group throught until its commercialization and benefits from our highly experienced team. At the beginning of each project, we incorporate a new company, evaluate the financial needs and provide or support the Portfolio Company in covering the necessary financial needs for the implementation of the proof-of-concept phase. We also take care about adequate staffing: We select experienced personnel to support the scientific team for the development of the innovation, including for compliance with regulatory requirements.
Early commercialization of our Portfolio Companies to generate profits
We typically limit our involvement in a Portfolio Company to the early stage, i.e., until the completion of the proof-of-concept phase and then aim to commercialize the Portfolio Company through, e.g., a sale or outlicensing. This strategy enables us to generate profits already after the proof-of-concept phase. We do not wait with the commercialization until an innovation of a Portfolio Company is marketed, which allows us to generate profits within two to three years after the innovation started with the proof-of-concept phase, which is a much faster path than the exit at the time of market which can take up several years.
De-risiking by creation of a diversified portfolio
Our investments are focused on four core areas. Although all those areas are tied to the life science industry, the strategic orientation of each area is different. Further, the risk profile of each area is different as the procedure for the proof of concept is different for a biotech company from that of a company developing a software for digital health. As a result, we have a broader pool from which we may select promising innovation for our portfolio and may de-risk our portfolio at the same time due to diversity.
Extension of current network and creation of own ecosystem to become more independent
We and our Portfolio Companies work closely together with universities, clinical centers and research institutions and intend to continue our collaboration in the future. Further, we seek to extend our existing network by partnering with other unviersities and institutions to further enhance our ability to have access to innovations and to support our Portfolio Companies with a network. In addition to our external network, we work actively to create our own network among the Portfolio Companies with the goal to become more independent and to create more synergies among the Portfolio Companies.