Stoic Venture Capital has announced it has concentrated the bulk of its portfolio toward healthcare after significantly increasing its holdings to 17 companies since establishing two and a half years ago.
Stoic Venture Capital is the Co-Investment Fund of Uniseed, a commercialisation fund which focuses on financing early-stage companies that emerge from member universities.
Stoic Venture Capital Partner Dr Geoff Waring said nine of the total 17 companies are developing new drugs, medical devices and treatments. The fund recently added Ferronova to its portfolio.
"Many investors prefer software to more medical and science-based technology because of the belief lengthy regulatory approval processes, clinical trials and quality-certified manufacturing processes means a longer holding period," Dr Waring said.
"But in doing so, they do not consider that health venture capital investors typically sell to pharmaceutical companies at the end of phase 2 trials, while software companies must wait to sell only after the product is long in the market with significant revenues."
Dr Waring said Stoic Venture Capital's close partnership with university-focused investment fund Uniseed gave investors access to some of the richest opportunities from Australia's top universities that have the potential to improve the lives of millions of people.
"These companies are bringing new solutions to billion-dollar global health challenges, from enhancing immunity to treat respiratory diseases (Ena Therapeutics), to addiction rehabilitation (Kinoxis) and hot flushes in women receiving breast cancer treatment (Que Oncology)," Dr Waring said.
"Many are at an early stage of clinical development, but we believe they are the next generation of world leading medical and scientific companies."
Dr Waring said Stoic Venture Capital's portfolio not only has potential to deliver investors high returns but had a double purpose of contributing to the growth of Australian medical and scientific innovation.
"We recognise Australia's need for stronger capabilities in health care to meet the needs of our ageing population," he said.
"Investing in health and science today, plays a vital role in creating a whole new generation of jobs and innovation for the future.
"We are committed to supporting early-stage health and science companies through initial trials to development and manufacturing."
About Stoic Venture Capital
Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. We are unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP). We take a collaborative approach to investing in the highest potential companies.
