Our Investment Strategy, Investment Criteria, and Investment Process

Our Investment Strategy

Life Sciences Focus

  • The BRCC focuses on life sciences broadly defined to encompass pharmaceuticals, medical devices and diagnostics.

Michigan Geographic Focus

  • Eligible companies must have a substantial presence or business link to the State of Michigan.

Return on Investment

  • The BRCC is required by legislation to structure any funding with the potential to achieve a return on its investment.

Usual Investment Range

  • $25,000 to $250,000 per deal

Our Investment Criteria

 Some Factors We Consider

  • Likelihood of providing return on investment to the BRCC
  • Novel product or platform technology that helps patients
  • Solid intellectual property portfolio with freedom to operate
  • Unmet market opportunity
  • Competitive business advantage
  • Experienced, entrepreneurial team (CEO, scientific team, and advisors)
  • Initial proof of concept (preclinical data or prototype design)
  • Clear milestones and commercialization plan
  • Realistic exit strategy

Material Required for Initial Review

  • Business Plan and Executive Summary
  • Investor Pitch PowerPoint
  • Financial Model
  • Development Plan (could be embedded in Business Plan)
  • Capitalization Table

Our Investment Process

 A Five Step Process

  • Investment Screening : From the many business plans we receive, we actively screen candidates through our investment criteria. We invite selected companies to our office for meetings. We also work actively with University Technology Transfer Offices for potential projects.
  • Due Diligence: After the initial meetings, we identify the best candidates and begin various phases of both scientific and commercialization due diligence. We commonly involve outside experts as part of this assessment. This process may take several weeks to several months.
  • Approval by BRCC Board of Governor’s: The Board of Governor’s Investment Committee must approve all investments by the BRCC.
  • Term Sheet/Close: For a small set of companies, we will issue a term sheet and negotiate the final terms and size of our investment. Some instances, recruiting a venture capital syndicate or angel investors to the deal will be necessary. This process can also take several weeks to several months.
  • Invest: After a successful close, and with mutual agreement, the BRCC may assume a role in the company to assist in the development of the technology.