A primary strategy for early-stage investment is partnering with entrepreneurs with a successful track record, often from previous portfolio companies. VCs will back a person they trust, like a former Chief Scientific Officer or a repeat founder, valuing proven execution experience sometimes even more than a nascent scientific concept.
Instead of passively waiting for pitches, proactive VCs like Foresight Capital build new companies by acquiring promising assets. They actively source clinical or later-stage assets, particularly from Asia where market dynamics are favorable, and then build a new company around them with a proven entrepreneur from their network.
Unlike a research scientist who focuses deeply on a single project, a biotech investor's work involves constant topic rotation. Their value comes from looking broadly across therapeutic areas and company stages, speaking with up to 10 companies a day to identify patterns and opportunities in a rapidly changing sector.
A biotech boom in China, fueled by returning scientists and VC funding, hit a wall when public market access was restricted. This liquidity crunch left many high-quality companies with promising assets undervalued and in need of capital, creating a prime investment window for savvy foreign investors to acquire technology.
Despite geopolitical tensions, the US and Chinese biotech industries are highly synergistic. An estimated 80% of US biotech companies use Chinese Contract Research Organizations (CROs) for cheaper and faster R&D. This on-the-ground reality shows a reliance on international partners for core development activities, enabling a more efficient global ecosystem.
Foresight Capital's model of investing across early, middle, and late stages from one fund provides a unique advantage. Their understanding of late-stage market needs and challenges directly informs and improves their selection process for early-stage companies, creating a powerful feedback loop that specialized VCs lack.