Angel Funded Companies Pivot To Battle On COVID-19 Front Lines

Techniques for evaluating early-stage companies seeking funding may vary but investment analysis remains more of an art than science. Entrepreneurial ideas and investment opportunities are abundant, however, determining who can effectively guide a team in the face of difficult odds is complex.

Philadelphia based angel investment group, Keiretsu Forum Mid-Atlantic, uses comprehensive mindshare and a proven process of due diligence to evaluate investment opportunities. “Beyond the formulaic process, the number one thing I look at when making a startup investment is the pedigree of the entrepreneur. In this, I — and the majority of the members in Keiretsu Forum — prescribe to the old adage “We bet the jockey, not the horse.”

Many companies around the globe have retooled and ramped production in response to COVID-19. This pivot includes early-stage businesses in the life sciences space. In recent weeks, I feel particularly proud of our investment decisions and the effective leadership in five portfolio companies who have each made a strategic pivot to battle COVID-19.

Keiretsu Forum Mid-Atlantic led or co-led due diligence and development of the investment packages for each of the following emerging businesses. It is often the role of early-stage investors to evaluate the ability of the company leadership team and advisors to bring a needed product or service to market. Each company mentioned here is now on the front line of vaccine development, treatment, or testing for COVID-19.

Immunomic Therapeutics is developing a nucleic acid vaccine candidate against COVID-19 leveraging its investigational UNITE platform for the prevention of the novel coronavirus disease caused by SARS-Cov-2 coronavirus. Immunomic is working with leaders from EpiVax and PharmaJet, who have a wealth of immunology and vaccine delivery expertise.

Laurent Pharmaceuticals, a clinical-stage biopharmaceutical company announced on May 6, 2020 that it has obtained approval from Health Canada and the FDA to initiate RESOLUTION, a Phase 2 randomized placebo-controlled trial testing once-a-day oral LAU-7b as a potential drug candidate to help combat the COVID-19 disease. The trial, which is planned to start imminently in multiple hospitals in Canada, will enroll approximately 200 hospitalized COVID-19 patients for a treatment duration of 14 days. Laurent previously committed to testing its lead drug LAU-7b in patients with COVID-19 disease as part of their scheduled Phase 2 clinical trial.

SFA Therapeutics has focused resources on SFA005, a drug in its portfolio that was designed to treat Cytokine Release Syndrome. Based on data that they have reviewed from COVID-19 patients, they are convinced a cytokine storm mechanism causes the progression of symptoms. In the short-term, they pivot to focus solely on the use of SAF005 to prevent the damage inflicted on patients by COVID-19.

20/20 Gene Systems Inc is producing an antibody test, CoronaCheck, that qualitatively detects antibodies to the SARS-CoV-2 using a blood specimen and delivers a result in less than 15 minutes. The company is shipping kits to medical providers in North America and has a backlog of pending orders from around the world.

EDP Biotech, is currently manufacturing early detection tests for colon cancer has switched gears to quickly develop a COVID-19 antibody test. On May 5th, the company announced its intent to pursue certifications to process antibody tests from other manufacturers while it develops its own test. The company is anticipating antibody tests will be a key component of combating the spread of the coronavirus pandemic over the next 12 to 18 months.

As in the past, necessity is the mother of invention. In this case, necessity is an opportunity for innovation and streamlining of processes. As angel investors, it makes us proud to be partnered with strong entrepreneurial leadership and that we were able to participate in the growth of these emerging businesses.

To learn more about these companies and Keiretsu Forum Mid-Atlantic, visit https://keiretsuforum-midatlantic.com/