The PE Data Center Buzz
Private Company Valuations: Biotech (Q1 2008)
Posted by Justin Byers, Lead Business Intelligence Analyst on June 12, 2008
VC Experts, Inc. will be at the 2008 BIO International Convention next week in San Diego. If you are going to be in the San Diego area next week, we invite you to come visit us at Booth #3335 (Louisiana Pavilion). Come join us Tuesday June 17th from 5 until 6:30 for cold Abita Beer, spicy Zapp's Chips and lively conversation about Biotech innovation and more importantly, take a FREE look at our proprietary Biotech valuation database--the largest in the world. Bring a copy of this article and get 2 WEEKS free access.
In anticipation of this event, VC Experts has compiled their findings of some of the Biotech deals for Q1 2008. Below is what they uncovered:
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You may have seen that Range Fuels, Inc. (formerly Kergy, Inc.) received a boost of approximately $130 MM. Some of the participants in this Series B round were Khosla Ventures, Pequot Capital Management, and Morgan Stanley Private Equity. The participating preferred shares had a Senior liquidation preference and non-cumulative dividends of 10%. The team found the post-money valuation to be $276,682,913.
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Alimera Sciences, Inc. received approximately $30 MM. The investors of this Series C round included Intersouth Partners, Domain Associates LLC, and Polaris Venture Partners, just to name a few. The shares were participating preferred without a cap on the participation and also had weighted average anti-dilution protection. The post-money valuation came out to be $127,736,253.
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What about Crown Bioscience, Inc. out of Santa Clara, California? Did you see that they raised just over $16 MM? The Series B shares had non-cumulative dividends of 8% and a 1x liquidation preference. There were several investors in this round, including Ignition Partners, Harbinger Venture Management, Acorn Campus Ventures, and Qiming Venture Partners. There was a post-money valuation of $39,167,883.
After inputting the data into our Cost of Capital Benchmark tool, Alimera Biosciences came out with the slightly more "company-friendly" capital.
Keep in mind, the lower you are on the chart, the more company-friendly the money, the higher you go on the chart, the more investor-friendly the money. If you are a company raising money, you want be lower on the chart. This is a time when it is not best to be on top if you are the company raising money.
Cost of Capital Benchmark (What's This?)
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