Transaction Case Studies
Garuda Therapeutics: NewCo strategy and financing led to oversubscribed $72M Series A
Situation Assessment
- Company was a pre-seed, stem-cell platform that is first to differentiate iPSCs into engraftable HSCs, enabling off-the-shelf, durable blood stem cell therapies
- Locust Walk partnered with the company to develop a comprehensive business plan and achieve a small seed financing and a target $60M fundraise
Key Activities
- Worked closely with company leadership and SAB to develop a full business plan, including clinical development strategy and selection of lead and follow-on indications, development of follow-on platform applications, partnering strategy, and use of proceeds plan and budget
- Leveraged our relationships to identify accredited seed investors and close $1M Seed financing
- Prepared Investor deck and helped position story in a way that would resonate with investors
- Helped company prepare a detailed use of proceeds plan, budget, and roadmap for the financing
- Constructed detailed financial models and valuation guidance to support investor conversations
- Facilitated and managed the CDA process, as well as organized the VDR for the company
- Conducted targeted outreach and organized meetings with both investors and strategic partners
- Shepherded company through DD process: captured and organized investor feedback, worked with company to respond to investor diligence questions, concerns, and asks
- Provided extensive guidance on deal dynamics and worked in collaboration with company and lead investors to drive financing to close
Successful Outcome
- Garuda raised $1M in Seed funding including an investment by Locust Walk
- Garuda successfully raised an oversubscribed $72M Series A led by Aisling Capital, Northpond Ventures, and Orbimed with a syndicate of leading life sciences investors, the terms for which were considerably more favorable than offers received prior to Locust Walk’s involvement
