Guest Post Article by Joni Kripal, Healthcare Consultant and Co-founder of Ji Smart Stuff
This success story about a Colorado company called VetDC shows that funding for lifescience companies can come from angel investors. Further, VetDC dispels a widely-held myth that funding for life science companies can only be found in funds or angel groups dedicated to life science ventures.
VetDC, a private veterinary biotech company, was founded on the principle that companion animals should have greater access to novel, innovative medical treatments. Working closely with Colorado State University‘s world-renowned Animal Cancer Center and Veterinary Teaching Hospital, VetDC “reverse-engineers” promising new human technologies specifically for development in companion animal markets to address serious veterinary medical conditions.
VetDC was launched in 2010 and licensed its first molecule in early 2011 (learn more about the company, their purpose, and their pipeline at www.vet-dc.com). The quest for capital was on! Steven Roy, President & CEO, described their journey to successfully closing $1.5 million a few weeks ago. It’s a lesson in perseverance and possibilities, so entrepreneurs take heart!
After securing seed funding from CID4in 2011, the team initially went down the venture capital path, believing that the amount of funding needed was beyond the scope of a typical angel raise. They soon learned that it was also smaller than most VC funds preferred. In addition, there were few active life science funds in Colorado, so they needed to concentrate their efforts out of state. Unfortunately, most life science funds are not set up to invest in veterinary opportunities and doing so would require going back to their limited partners for approval to pursue an opportunity like VetDC. A step that few, if any, were willing to take. While meeting with these firms did not ultimately yield the money sought, it provided confirmation that VetDC’s business concept was valid and may ultimately provide a channel of new pipeline prospects from VC portfolio companies. So, there was somewhat of a silver lining associated with taking this path.
Fast forward to the Angel Capital Summit (ACS) last March. Steven considered participation in an angel pitch event a long shot but remained hopeful that he could attract the attention of local investors. And he did! After the ACS, he was on the Rockies Venture Clubradar and made several pitches to RVC investors. Encouraged by RVC’s interest, Steven decided to redirect his efforts toward angel investors. VetDC finally gained major traction when Steve Warnecke, a long time angel investor and entrepreneur who has taken several companies public, joined the cause and assumed the lead angel role. Negotiations ensued, investors were brought into the fold and the $1.5 million round was closed in early November.
Of course, the team at VetDC is energized by the infusion of capital to fund the next steps. They are absolutely delighted that they were able to access the needed capital right here in Colorado. “Keeping it local is a real plus. We look forward to accessing the tremendous expertise our angel investors bring to the table. It’s an exciting time at VetDC!” says Steven Roy.
VetDC has moved into full execution mode preparing for the manufacturing of VDC-1101 and filing for FDA approval in canine lymphoma. They are now well on their way to making the launch of this life saving therapy a reality for dog lovers across the country. Their goal is to be ready for commercial launch in late 2014.