Client Assignment · Technology · Life Sciences
A new market, many startups, and a way to see the right ones early.
Vaxa worked with IBM to enter the life sciences industry, starting with drug discovery then to medical imaging. Vaxa proposed backing selected venture funds, so the funds can create visibility to the right startups that are aligned with IBM strategy.
CLIENT
IBM Corporate Venture Capital
OUTCOME
$25M invested across four venture funds
THE CHALLENGE
A new field to enter, and startups to find early.
We work IBM corporate strategy and identified life sciences as an attractive industry to focus on first. The startups that mattered were spread across North America, Europe and Asia Pacific.
IBM wanted to see them early, and to know how much to commit and where.
What Made This Different
Let the right VC funds bring the startups to you.
The idea came from Vaxa: invest in a selected group of venture funds, and the funds would make visible the startups IBM should work with.
Nobody yet knew which startups those were. So we first built a framework that described what they would look like, tied to where IBM's strategy was heading.
WHAT vaxa DID
A framework, a global analysis and the introductions.
01
Strategic Framework
Built a framework that described the kind of startup that fit IBM's direction in life sciences, so every fund could be judged against it.
02
Global Fund Analysis
Analyzed the global venture community for life sciences. We looked at where funds had invested in the past and where newly formed funds were heading.
03
Fund Prioritization
Used both views to weight the funds were attractive. IBM expected 10 to 15. We prioritized 25 across North America, Europe and Asia Pacific, and helped IBM decide how much to invest.
04
Introductions, Terms and Closings
Introduced IBM to the funds it chose, and helped negotiate the terms and closings.
The Outcome
Four funds backed. Startup investments followed.
01
25 funds prioritized worldwide
A ranked list across North America, Europe and Asia Pacific, well beyond the 10 to 15 IBM had expected to need.
02
$25 million invested in 5 funds
Over two to three years, IBM invested in four of the prioritized funds.
03
Direct startup investments
IBM went on to invest in startups directly, in computational biology, chemistry informatics and clinical trials.
04