![]() The American Cancer Society is not only an early stage grantor for research, and closely follows not only scientific discoveries but the competitive landscape is unique. Pomponio says though health science investments are risky, BrightEdge’s American Cancer Society affiliation helps take some risk out of investments. These include the potential for regulatory issues or the uncertainty of performance in clinical trials. “Going to an organization that is trusted and is known to be patient-centric-at the end of the day, the patients are our limited partner, even though they may not write the check.”ĭespite the healthcare sector being generally defensive, investments targeted by VCs, such as cancer therapeutics, face special risks. It’s not a PR play for an organization like ACS, which publishes cancer facts and figures, and has detailed data from its granting.Įven if investors don’t understand the machinations of a specific investment, BrightEdge’s overall portfolio focuses on a clear concept: the eradication of cancer, in one way, shape, or form. “We started as an impact organization, we have invested resources to conduct research around some of these fundamental problems, but also breakthrough science and discoveries,” Pomponio says. But philanthropic impact funds offer security in that mission. Not unlike greenwashing in environmental investing, Pomponio notes that there’s plenty of talk about creating impact when not true, which can be confusing for investors. Pomponio says for investors looking to invest in impact it’s essential to know “that the organization is credible and trustworthy, but also may have direct experience in delivering impact solutions.” It’s also key that the investing is evidence-driven and guided by experts. ![]() Pomponio recently offered Penta three tips on impact investing in healthcare venture capital, and BrightEdge’s approach to mission-focused, venture capital investing. SVB anticipates this activity will slow closer to 2020 levels in 2022. Silicon Valley Bank reports that 2021 was a record-breaking year for VC investment in healthcare, with more than US$80 billion invested, including US$28.3 billion in venture fundraising-almost double 2020 levels. ![]() It’s good timing to marry philanthropy and venture capital in this sphere. Presently there are several funds similar to BrightEdge, such as the American Medical Association's Health 2047 fund or the Cystic Fibrosis Foundation's venture philanthropy fund, innovating healthcare venture capital. Pomponio thinks the VC community is waking up to impact investing. Its current fundraising target is US$100 million. So far, US$3 million has been donated by individual donors via tax-deductible major gifts. Pomponio says on the surface, aside from the cancer focus, BrightEdge’s portfolio may not look that different from other VC investors and anticipates market rate returns.īrightEdge, which is about US$70 million in size, acts as a follow-on investor and board observer, targeting individual investors and family offices, as well as foundations and companies. Companies in BrightEdge’s portfolio include immunotherapy drug developer Checkmate Pharmaceuticals, early detection biotech Freenome and patient financial navigation software firm TailorMed. The fund has made 17 investments into for-profit, cancer treatment-focused companies (with two IPOs to date). ![]() “There are people who recognize that startups and innovation ecosystems in a competitive market-based model actually drive discoveries to commercially available products and services in a much more focused way,” she says. Pomponio says BrightEdge, which is headquartered in Atlanta, was born out of a business objective to diversify and modernize the nonprofit’s revenue base. Using the private market database Pitchbook, the American Cancer Society estimates that in the last 2.5 years, its grantee-founded companies raised a total of US$5.4 billion in major oncology deals alone. The American Cancer Society is no stranger to venture capital, but its prior role has mostly been funding initiatives, which grantees commercialize. ![]()
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