NewCo Creation
ABOUT NEW COMPANY CREATION
On the back of a successful launch of Garuda Therapeutics fall 2021, Locust Walk is playing a proactive role in helping to launch new biopharma companies based on both cutting-edge platforms and differentiated clinical-stage assets. We employ the same rigor used for existing clients in the creation of portfolio prioritization, indication selection and partnering strategy and planning to help build the business case for a new company. We help in the business building activities to launch the company, including recruiting management (as needed), raising a seed round and engaging potential partners and institutional investors to fund the companies.
What is our model
We partner with founders and companies to help get fair value for their innovation. We believe that often founders are best equipped to help chaperone the technology forward even if they do not join the company full-time. The founder is at the center of our model and our focus. In certain cases, Locust Walk will place an Entrepreneur in Residence to run the company through the Series A and in other cases a CEO has already been identified. For our efforts as co-founder, we receive a portion of the founder’s equity plus a success fee upon close of a strategic transaction and/or financing.
What we are looking for in a platform
We are looking for cutting edge science at least one generation ahead of the current market. We are not focused on incremental innovation or addressing problems that have been largely solved by other approaches. We will work in any of our core therapeutic areas or modalities on a new company.
What we are looking for in an asset
We are looking for clinical stage assets that have some proof of biology yet have been deprioritized by their current company. We are focused on unmet medical need to impact patients, which means first in class or a differentiated best in class opportunity. We will work in any of our core therapeutic areas and with any modality.
How can Locust Walk partner with existing new companies?
For companies that already have raised a small seed round but desire Locust Walk’s expertise early in a company’s life cycle, we can scale our typical engagement fees towards a mix of cash and equity. We think like founders even if we aren’t formally one.