Entrepreneurs

Please review our Investment Criteria before submitting an investment opportunity to MABA. If you think your company is a fit, please download, fill and submit the Submission Cover Page  along with your executive summary (which should not exceed three pages).

Also, please be aware of MABA's Presenting Company Warrant Grant Requirements: MABA does not charge companies a cash fee to present. Instead, it receives from the company the right to invest certain amounts in the company, at the next round's valuation, a right MABA may take several years to exercise.

All applications go through a multi-step pre-screening process that may be lengthy at times.

We get back to all applicants during or after our review process, regardless of outcome. If your company was not selected to present, we will provide you with our reasons and any other feedback we may have.

Companies invited to present are given 15min for presentation, followed by 15min of Q & A, after which the company is asked to leave the room and a 15min private investor discussion takes place. At the end of our private discussion, we will tell you if any investors expressed an interest in investing in your company. If some have, arrangements will be made to conduct due diligence on your opportunity. Please be aware that our group has signed the due diligence cooperation treaty and, as such, may invite other angel groups to invest and share due diligence with them.

Please remember that angel groups, including ours, do not sign non disclosure agreements, so please make sure to only provide information that you are comfortable sharing.

Advantages For Life Science Companies

Targeted Audience: Life science companies present to active life science angel investors and others who share the same investment interests 

Mentoring & Feedback: Not all companies who apply to present will be accepted. 

  • Those not accepted to present will be provided the reasons for their rejection
  • Those accepted to present will speak with one or more of the SC members prior to presentation, and will also be given feedback by the same members after their presentation

Cost:  There is no cash fee to present. 

Investment: Because of MABA's inclusionary efforts, the group and its members will have access to a number of other angels, angel groups, institutional funds and company venture funds – all of which should aid the company’s efforts to efficiently raise the funds it requires

Please review these Investment Criteria before submitting an investment opportunity to MABA. Only if you think your company is a fit, please download, fill and submit the Submission Cover page along with your executive summary (which should not exceed three pages).

GENERAL INVESTMENT CRITERIA

Please consider the following guidelines when preparing materials to present to MABA:

Business Areas

We invest in life science companies.

Submission Materials

Please limit the materials to the minimum necessary to address the criteria described below. Executive summaries should not exceed three pages.  We prefer more extensive business plans in PowerPoint format. In either case, you can provide appropriately titled additional supporting documents if you feel these documents will significantly clarify the business opportunity.  If we determine that you should become a presenting company, the final presentation to the group should be 15-25 PowerPoint slides.

Market

We prefer opportunities with clear unmet market need or clearly defined competitive advantage over existing products already in that market and a potential or demonstrated addressable market of at least $100 million. For platform technologies, the market for the initial product derived from the platform should be large enough to justify the investment on its own. We recommend market size estimates be built “bottom up” from number of patients/procedures and the anticipated price of your product and service, and not “top down” from published reports on dollar or unit number for sales related to a disease. Your sales projections in relation to this market should translate into a realistically achievable market share.

Proof of Concept

The company should have a readily describable or identifiable product and established some ideally publishable data which provides proof of concept for the product’s efficacy or utility, ideally sufficient to support at least a provisional patent application. For therapeutics, this may mean that a molecule has been identified and some small animal testing in accepted models is complete. For a device, this may mean an initial model or prototype, some in-vitro testing and ideally some acute in-vivo testing has been completed. For a diagnostic, this may mean that at least retrospective testing has been completed on real samples. For a service or IT product, you need at least a prototype algorithm and/or a vaporware presentation and some information regarding the intended patent protection.

External Validation

The company should ideally provide some external validation of the value of the company’s intended products or services. This can include responses from prospective customers, distribution partners, or acquirers, or support from VCs who may have expressed a future interest if certain milestones can be met. A list of potential customers who have expressed a willingness to speak to potential investors regarding the merits of your proposed product would be very helpful.  A list of paying customers is priceless.

Amount Being Raised

Typical life science angel investment rounds are up to $500,000 per angel group, and possibly as high as $5,000,000 in a syndicated round, where multiple angel groups invest together.  We are looking for opportunities where our investment could get the company to a major "inflection point" - preferably an exit (or at least a point where the angels can recoup some or all of their investment), or a point after which the company would be self funded. When smaller investments are involved we look for opportunities where a relatively small amount of money can remove a substantial amount of risk and result in the achievement of a substantial milestone, and with it, a step up in valuation. You should articulate how you can get to a significant value creation milestone on the money we are being asked to put in.  Subsequent investments may be considered, following the achievement of successful milestones.  In general, preference will be given to deals that are (or can be) entirely angel financed.

Valuation

Angels look for companies with valuations appropriate to the level of risk and return. While in general we look for companies with pre-money valuations of $10 million or less, we are also interested in transactions with companies having higher valuations if there is a realistic prospect of a liquidity event in the near future, such as bridge funding and later stage opportunities. For investments outside of our basic criteria and those which may require significant additional capital, our terms will have to include protective covenants which limit dilution, and/or offer creative milestone based returns, and/or adjust our holdings if future financings result in lower stock/equity pricing.

Plan for Exit or Return

You should articulate how you plan to ensure investors realize return on their investment - through an acquisition or technology license by another company. The plan for such an exit should ideally include the planned timing of a possible exit, a list of potential acquirers, similar acquisitions that the purchasers have made and the valuations of these acquisitions. "Cash cow" payouts are rarely attractive to angels because it is too easy for the company to decide to reinvest the cash. As a guideline, we are looking for a credible potential return to investors of at least 5X in 5 years or about a 40% annual ROI.

Amount of Capital Required

If a company requires a great deal of capital (e.g., more than $10M) to get to its exit, we will not be able to supply all of it. You should have a realistic plan for raising the follow-on capital while protecting the early investors. It is helpful to line up future investors (e.g., VCs) who will be interested in investing once you have achieved certain, specific milestones.

Structure

Preferred stock investments are ideal. If the company wishes to propose a convertible note structure which converts into the first VC round, then the company should make certain that the angels are being adequately compensated for the additional risk they are taking by investing well in advance of that VC round. This can include a combination of high interest rate, discount from the round and/or warrants, and/or return of capital from early revenues. You can expect to provide 25-50% discount or warrant structure.

Barriers to Entry

You should describe the company’s intellectual property and / or other means that the company will keep competitors from being successful in copying the company’s products or services. If you are relying on patents, you should provide us with some specifics as to the claims you hope to obtain.

Strength of Management Team

Explain how the critical functions of product development will be accomplished and whether the intention is to remain "virtual", using consultants as needed.  Provide summary resumes to demonstrate whether existing management has the necessary skill sets and experience to make appropriate use of the proposed funding.  Remember the cliché, "Better an excellent management team with a mediocre plan than a mediocre team with an excellent plan."  If certain skill areas are currently lacking, in addition to pointing them out, identify, if possible, persons who offer the necessary skills and who have expressed a willingness to join or assist the company if funding is obtained.

Other Business Considerations

We look at a variety of other business issues when we evaluate a potential investment, including a credible go to market plan, competition, production and sales economics, regulatory and reimbursement issues. You should prioritize these and address each of them appropriately.  Preference will be given to deals that are entirely angel financed, and where the greatest degree of transparency is exercised.

If your company fits our investment criteria, please download our Submission Cover Page, fill and return it along with your executive summary to info@bioangels.net

If your company is in need of assistance and/or at a stage that is too early to present, we may be able to help. Whether you need talent for your management team, members for a board, or expertise - relating to any number of activities - our group has both broad connections and deep knowledge. Please contact us to see how we can help.

Does MABA sign confidentiality agreements?

Most angel groups, VCs and investor groups, including MABA, do not sign Confidentiality Disclosure Agreements (CDAs), also known as Non Disclosure Agreements (NDAs).  Sometimes, such as in the course of conducting due diligence, the company and investors may feel that confidential information needs to be shared.  If and when such events occur, the individual investors may decide to personally enter into a CDA with the company.  Such an occurrence is entirely at the discretion of the individual investors, who would be executing a CDA on their own behalf.

Is MABA a fund?

MABA is not a fund, but rather a group of individual, active, accredited (angel) investors who have an interest in investing in Life Science opportunities.  MABA angels invest individually or through an entity that is formed for such a purpose, depending on the terms that are negotiated directly between the angels and the company.  In 2016, MABA formed an internal fund (an investment Pool), which invests alongside the individual investors.

Why does it take so long from the moment I submit my application until I hear back from someone at MABA?

Each application received by MABA goes through a multi-step pre-screening process.  This process may be lengthy at times, but we get back to each company, regardless of outcome.  If MABA rejects a company, the company is provided with the reasons for the rejection.

Why does MABA pre-screen?

Investors and investor groups have their own investment preferences, as do MABA's investors.  We pre-screen in order to ensure that an opportunity is of the type that is likely to interest our members, and therefore likely to generate investment interest.

Do MABA investors invest like most angels - in companies that are within a two-hour drive from their home?

MABA investors do not place geographic limitations on investment opportunities, as long as meaningful post-investment monitoring of these companies can be arranged.

What are my chances of receiving an investment?

Statistically-speaking, of every 100 applications MABA receives, only 23 companies are invited to present to MABA investors.  Of those 23, about 16 move into due diligence, and of those about two receive investment.