Transaction Case Studies
Private financing engagement leading to $80M equity raise
Situation Assessment
- CytoReason is an AI/ML driven tech company with a combined software, data, and services platform
- The company’s evidence-based computational models enable clients to predict phase 2 trial results using cell and tissue specific level analysis to select the right target, disease, and patient population
- CytoReason had previously established a commercial partnership with Pfizer, including a $20M capital commitment towards a Series B raise
- As a result, Locust Walk and Nomura Securities were engaged to solicit investors and global strategics to lead and commit an additional $50M to the round
- Prepared high-impact marketing materials (teasers, management presentations and valuation decks) to emphasize CytoReason’s value proposition
- Conducted a broad, outreach to hundreds of global and regional life-science/tech focused VCs, corporate VCs, and institutional investors
- Led numerous companies and investors through a confidential due diligence process and facilitated discussions with several interested parties, generating a final term sheet for financing
- Conducted financial and precedent transaction analysis to support company pre-money valuation negotiation
- Provided guidance on economic and non-economic terms and final agreement negotiations
- Worked in collaboration with syndicate investors and their legal counsels across multiple geographies to drive financing to close
- In a volatile funding environment, Locust Walk was integral to guiding investors to a successful closing of the financing
- CytoReason successfully raised an over-subscribed equity financing round ($80M) led by M&G with participation from Nvidia, ThermoFisher, OurCrowd, and Pfizer
- Funding will be used to build additional diseases models, expand infrastructure and resources to improve existing products, and increase sales generation and support
