Transaction Case Studies

Multi-track engagement leading to an equity investment

Situation Assessment

• Rapid Micro Biosystems is a privately held, commercial stage life sciences company.​
• Rapid Micro Biosystems creates innovative products for fast, accurate, and efficient detection of microbial contamination in the manufacture of pharmaceuticals, biologics, biotechnology products, medical devices, and personal care products.​
• Rapid Micro Biosystems is focused on ramping revenue of its Growth Direct system. ​
• The company engaged Locust Walk to run a comprehensive multi-track process to generate investor demand from venture capital, sovereign wealth, private equity, cross over and strategic investors. 

Key Activities

• Collaborated with management team to recast pro-forma financial statements, ensuring clear articulation of capital requirements and use of proceeds ​
• Ran a comprehensive global process to identify potential financial investors spanning venture capital, sovereign wealth, private equity, cross-over funds and strategic investors with strong capabilities in the quality control/biomanufacturing automation space ​
• Initiated discussions with, and provided guidance on interest from, potential strategic partners for investment and/or acquisition​
• Conducted financial and precedent transaction analysis to assist in the evaluation of deal terms for equity and debt term sheets ​
• Integral in negotiating economic and non-economic terms and provided guidance to Rapid Micro throughout the transaction process

Successful Outcome

• Rapid Micro successfully raised an equity financing round ($60M) led by new investors Bain Capital Life Sciences and Xeraya Capital​
• The new funding round also included an investment from a new strategic player, Asahi Kasei Medical, along with continued participation by Longitude Capital, Quaker Partners, TVM Capital, and Richard K. Mellon and Sons​
• Funding will be used to accelerate global commercial expansion, operational capability and product innovation​
• Rapid Micro has continued discussions with strategics to explore co-promotion and commercial partnership opportunities to support its growth initiatives 

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