Transaction Case Studies

Newco venture for novel immune regeneration platform led to twice upsized seed

Situation Assessment

  • Locust Walk co-founded NewCo with two scientific founders in the fields of hematology, oncology, immunoengineering, and mechanoregeneration
  • The novel technology aims to leverage the body’s inherent regenerative capacity to create therapeutics to restore immunity damaged by toxins, disease, or age
  • The scientific co-founders received investor interest and were seeking support to turn ground-breaking research into a company to accelerate its development and raise capital
  • Locust Walk’s objective as co-founder was to support the academic founders to help build a company while retaining as much value for the founders as possible

Key Activities

  • Worked closely with co-founders to develop a full business plan, including pre-clinical and clinical development strategies, indication prioritization, company organization chart, pre-clinical budget, and use of proceeds plan
  • Prepared non-confidential and confidential investor materials, positioning the company story in a way that resonated with investors
  • Conducted investor outreach to our network of accredited investors and facilitated management discussions, providing support throughout the due diligence process
  • Lead deal dynamics and collaborated with investors and legal team to establish a timeline and drive the financing to close
  • Negotiated licensing terms with the technology transfer office at a leading research university to enable company spinout

Successful Outcome

  • Locust Walk along with the founders helped incorporate the business, develop a business plan, build a detailed budget and raised a twice upsized seed round of ~$7M
  • Funding enables the company to further develop both immune regeneration platforms, supporting preclinical data generation in HSCT complications and proof-of-principle for platform expansion opportunities
  • Funding will also support finalizing CMC and regulatory development for IND-enabling studies

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