Novartis Venture Funds makes investments through three investment vehicles: the Novartis Venture Fund, the Novartis Option Fund and the Korea Fund.
The Novartis Venture Fund
The Novartis Venture Fund is a financially-driven venture fund which makes equity investments in life sciences companies across biotech, medical devices and diagnostics. The venture fund is stage-agnostic and engages in seed investments as well as later-stage investments. The Novartis Venture Fund typically leads or co-leads a deal and plays an active role on company boards. The Novartis Venture Fund is an evergreen Fund grown to more than USD 550 mio under management, re-investing the returns generated. We seek companies in the US and Europe that are truly innovative, have the potential to offer significant patient benefit, have excellent management and are capital-efficient. We continue our approach of making larger focused investments and anticipate total investments up to USD 30 mio per company over its life, but it can be as little as USD 100 000 to get started.
The Novartis Option Fund
The mission of this fund is to seed innovative startup companies during their earliest stages. The focus of investments is on early stage, high risk areas enabling the development of novel programs and technologies. The initial equity investment can be coupled with an option to a specific therapeutic program giving early validation for the start-up company’s technology. The option is structured to provide the young company with an additional opportunity for success and must be consistent with the company’s corporate development plans and shall not be the main value-driver in the startup’s pipeline and is limited in duration to maintain the company’s potential in the market. The Novartis Option Fund has an initial size of USD 200 mio. Investments are reviewed by a dedicated advisory board with a majority of external members. We are committed to building companies that will be attractive to many other life science partners. Thus we finance in a syndicate along with other venture capitalists.
The Novartis Korea Venture Fund – fostering growth in a burgeoning biotech industryIn 2008, Novartis Venture Funds created the Novartis Korea Venture Fund, a unique commitment to early-stage investing in innovative life sciences companies. The NKVF is committing USD 20 mio in capital to Korea. In 2012 Novartis Korea Venture Fund continued its support of Korean biotech companies with follow on investments into Pharmabcine and Qurient in syndication with Korean and international investors.