Life Sciences v/s ASX 200

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Australia has a growing Life Sciences industry.  

Market cap of listed Life Sciences companies in Australia grew from A$ 38 Billion in Dec 2007, to A$ 143 Billion in Sept 2018 – a CAGR 13.1% vs ASX 200 which stayed mostly flat.
138 companies with a total market cap of A $143 B as of Sept 2018 with some companies approaching commercialization.

 
owners could have retained A$ 2 Billion
over the last 10 years had they been offered loan capital
— Soma (founder)

Australian life science companies

often constrained by capital

 

When there is a mismatch between the progress on your development milestones and capital raising, companies like yours are forced to raise equity at suboptimal values, diluting existing shareholders excessively.

Emerging Life Sciences companies in Australia have no access to debt and rely entirely on equity. In the case of 90 Australian Life Sciences companies (combined market cap: A$ 10 B) the owners could have retained A$ 2 Billion over the last 10 years had they been offered loan capital.

 
Stop giving away so much of your company when you raise capital
— Soma (founder)
Valuation with equityand Growth capitalTIMEValuation withonly equity

Mitigate dilution

 

The incremental capital afforded by debt allows startups to achieve more progress ahead of the next valuation event, thus mitigating equity dilution. Growth Capital supplements venture equity in emerging technology companies – specifically in IT, Life sciences and Clean Tech companies. Over 10,000 companies have used it wisely.

 
Lending to early stage companies with unproven technology is a specialized skill and keeps traditional lenders away
— Soma (founder)
 
 

We know from  our study of 90+ listed Australian companies that Growth Capital (venture debt as it is called in the US) used judiciously, can help existing shareholders retain

15% - 20% of the value of those companies

value they are giving away today to new shareholders. Debt is a clear sign of confidence in your business plan. Our team has mastered the underwriting and risk management skills of providing loan capital to such companies.

 

 

Global team & proprietary expertise

We have over 60 combined years of experience with over US$ 5 billion in transactions in the capital growth business. Lenders like us are a conduit for a new class of investors who have lower risk tolerances than equity investors.

We offer growth capital at a lower cost.

This makes finding cures less expensive.
That is what makes us, Global Life Sciences Capital, a force for good.

Count on transparency when you deal with us.

Click here to view or download a sample term sheet.

Our Team...

Contact us

We are a click away, or a half hour drive in Australia or New York...

 
 

 

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