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This article was prepared for the January 15, 2003 edition of U.S. 1 Newspaper. All rights reserved.
Princeton 08542. John K. Clarke, managing general partner. 609-924-6452;
fax, 609-683-0174. Home page: www.cardinalpartners.com
Cardinal Partners is an early-stage venture capital firm with $185
million under management. It invests between $6 and $8 million per
company, and focuses on high growth companies in the information technology,
life sciences, healthcare services, and medical devices sectors.
In the healthcare information technology sector, Cardinal seeks investments
that streamline communication between providers, payers, and patients,
further the R&D goals of the pharmaceutical industry, or automate
the workflow and productivity of healthcare providers. Active in the
life sciences sectors since the 1980s, the firm pursues companies
that can offer alliances with large pharma, the potential for broad
clinical application, and command of multiple technologies bearing
on a specific large-market opportunity. It is particularly interested
in innovations being made in the area of drug delivery.
In healthcare services Cardinal supports businesses that optimize
service in traditional settings or empower physicians to make informed
Princeton 08540. Jan Leschly, chairman/CEO. 609-683-8300; fax, 609-683-5787.
Care Capital makes investments of between $5 million and $10 million
in later state private and public companies. It invests in life science
companies with a particular focus on pharmaceuticals, biotechnology,
and information technology and service companies serving the life
In addition to providing growth capital, the fund seeks to work alongside
management to acquire businesses that are for sale by private or public
owners. It also assists corporate partners who may wish to acquire
or divest businesses to accomplish financial reporting, capital allocation,
or other objectives.
Epigenesis Pharmaceuticals, at Cedar Brook Corporate Center, is the
only Central Jersey firm in the portfolio. Other portfolio companies
include Anadys Pharmaceuticals, Archemix Corp., D-Pharm Ltd., Dynavax
Technologies, Medical Present Value, Microchips, Nitromed, PHT Corp.,
and Renovo Limited.
515, Princeton 08542. James C. Blair, general partner. 609-683-5656;
Domain Associates, with approximately $492 million under management,
concentrates its investments in biopharmaceuticals, drug discovery
services, medical devices, instrumentation, diagnostics, advanced
materials, healthcare information systems, and healthcare services.
In biopharmaceuticals it looks for a large, poorly met clinical need,
a proprietary technology platform, and early evidence of efficacy.
In healthcare services, it looks for a proven management team that
is first to enter a given market and a robust strategy and business
Domain has two business approaches, accelerated commercialization
strategy and defined liquidity ventures. The first involves adding
highly relevant products and/or commercial capabilities to a high-tech
R&D-stage enterprise, thereby mitigating risk while simultaneously
providing infrastructure that the company will require in the future.
The second involves structuring new companies from the outset in ways
that would make them attractive acquisition candidates and, when possible,
to identify the purchases and even negotiate specific acquisitions
simultaneous with (or soon following) initial investment.
08558. Ron Hahn/Jim Millar, general managers. 609-921-8896; fax, 609-921-8703.
Early Stage Enterprises is a private venture capital fund organized
to provide capital and guidance to early stage companies in the Mid-Atlantic
region. ESE has $44 million to invest, and is licenses by the U.S.
Small Business Administration as a Small Business Investment Company.
It would founded in 1996 to address what its founders, Ron Hahn and
James Millar, saw as an under-served segment of the private equity
market. In recent years, companies requiring less than $2 million
of capital have encountered increasing difficulty in securing financing
as trends in the venture capital industry have shifted towards an
emphasis on larger and later stage developments. ESE welcomes proposals
from these companies, and will consider investing as little as $250,000
in companies that have exceptional growth potential. ESE works closely
with the management of the companies in which it invests.
The fund specializes in providing the first institutional money invested
in an early stage company. In most cases, prospective companies have
less than $3 million in annual revenue at the time of ESE’s first
investment. All capital invested by ESE is in the form of equity,
but the investment is not intended to create a controlling interest.
ESE focuses on early stage businesses in the information technology,
computer software, Internet software and services, medical devices
and diagnostics, life sciences, and healthcare services sectors. It
prefers to work with companies in the Mid-Atlantic region, from Connecticut
to Virginia. Its preferred first round investment ranges from $500,000
to $1 million. Additional funding, up to $2.5 million total, is usually
keyed to clearly defined milestones in a company’s progress, such
as a product test or a target level of sales.
4, Suite 200, Lawrenceville 08648. John H. Martinson, Ross Martinson,
and Joe Allegra, general partners. 609-896-1900; fax, 609-896-0066.
Edison invests in expansion stage ($5 to $20 million revenue) information
technology companies located in the New York City to Virginia corridor.
It invests $3 to $5 million initially and is usually the sole or lead
The fund seeks companies that have the capabilities to lead emerging
markets. It identifies promising enterprises that will grow rapidly
with proprietary products or services. With $400 million currently
under management, Edison has created market capitalization surpassing
$5 billion. Its strategies include venture capital, expansion financing,
management buyouts, consolidations, and secondary stock purchases.
The fund has invested in 10 companies providing software and services
for major pharmaceutical and biotechnology companies.
Edison develops close working relationships with entrepreneurs and
becomes their primary business advisor. It assists portfolio companies
in strategic planning, organizational development, and capital structure.
The fund welcomes investment proposals directly from entrepreneurs,
investors, professional service providers, and other referral sources.
It generally makes investment decisions within two months — and
less when the business plan is comprehensive and it already has considerable
200, Princeton 08542. James H. Cavanaugh, president, general partner.
609-430-3900; fax, 609-430-9525. Home page: www.hcven.com
One of the world’s largest venture capital firms specializing in health
care, Healthcare Ventures (HCV) invests in emerging growth companies
with the potential for exceptional growth. Since its formation, HCV
has created biopharmaceutical companies in genetic therapy, genomic
sciences, drug discovery and delivery, neuroscience, and organ and
HVC, with approximately $535 million under management, makes initial
investments of $1 to $20 million in companies with a potential for
liquidity in 3-5 years at a value of $100 million with markets in
excess of $500 million worldwide.
Princeton 08540-7645. Robert F. Johnston, president. 609-924-3131;
Johnston Associates (JAI), founded in 1968, has launched companies
from the ground up around unique and commercially promising technologies
and has also financed more established small companies with demonstrated
growth potential. Its portfolio of companies range from pharmaceuticals,
diagnostics, cell separations and imaging to drug discovery and delivery,
toxic waste remediation, genetic engineering and biopesticides. Some
of these companies are in the early stages of development, while others
have emerged as publicly traded companies.
JAI provides seed funding and assists on an on-going basis raising
money through private investors, financial and technical alliances
with large corporations, and strong relationships with lead underwriters.
JAI invests its own private capital and does not manage an investment
fund. Because of the time-consuming nature of start-ups, JAI typically
invests in one enterprise a year. Its investments have ranged from
$300,000 to over $3,000,000. Stringent criteria are applied to scientific
achievement, market potential, uniqueness of approach, and caliber
The firm’s current main areas of interest are therapeutics and delivery
mechanisms, separations and purification technologies, databases for
therapeutic discovery, drugs from Europe, and drugs to be repositioned.
Briggs Road, Suite 280, Mount Laurel 08054. Jim Gunton, Joe Falkenstein,
and Robert Chefitz, general partners. 856-787-9700; fax, 856-787-9800.
Home page: www.NJTC.org
The NJTC Venture Fund invests from $300,000 to $3 million in high-tech
growth private companies in the seed, start-up and early stages (concept
to $5 million in revenues). It seeks focused businesses with the potential
to dominate a promising market niche. Capital comes from corporations,
public and private funds, partnerships and individuals. The fund has
commitments of close to $30 million, which will be leveraged with
a $10 million NJEDA investment from state appropriations (www.njtcvc.com).
The NJTC fund seeks opportunities where its skills, experience and
contacts will contribute meaningfully to a company’s success. It generally
holds a seat on the board of directors of portfolio companies and
serves as a counselor on strategic or otherwise major decisions.
Jumpstart New Jersey is a new NJTC initiative. Founded in September,
2002, in response to the fact that access to capital remains a critical
need for high tech companies, it is an investor-driven group that
offers members the opportunity to realize profits while helping to
develop new ventures through mentoring.
309, Princeton 08542. Stephen Shaffer, partner. 609-497-4646; fax,
Established in 1996 as a Small Business Investment Company (SBIC),
Penny Lane Partners, with approximately $30 million under management,
is licensed and regulated by the Small Business Administration (SBA),
but remains a privately-organized and privately-run investment firm.
With its own capital and with funds borrowed at favorable rates from
the federal government, Penny Lane participates in partnerships between
the government and the private sector, providing capital to small
independent businesses, both new and already established.
204, Princeton 08540. Pasquale DeAngelis, chief financial officer.
609-919-3560; fax, 609-919-3570. E-mail: firstname.lastname@example.org
Home page: www.proquestvc.com
ProQuest Investments, founded in 1998, is a healthcare venture capital
firm with over $250 million under management. It invests in healthcare
companies seeking seed to late-stage financing. Its portfolio included
companies in the biopharmaceutical, enabling technology, medical device,
and healthcare service sectors. ProQuest has a special expertise in
Average investments range from $250,000 to $10 million. The firm looks
for breakthrough technologies and products with strong intellectual
property. ProQuest focuses on opportunities in initial addressable
markets of at least $200 million where there is a significant unmet
need for the company’s products and technology.
Building, Princeton 08540. Peter Gerry, managing director. 609-759-8888;
Spun out of Citicorp Venture Capital in 1995, Sycamore managed more
than $550 million. Its typical investment ranges from $5 million to
$15 million, distributed over several rounds of financing as a company
achieves key milestones. John Whitman, the spouse of former Governor
Christie Whitman, is among the general partners here.
Sycamore has long-standing relationships with corporations, entrepreneurs,
and business leaders in the Asia-Pacific region. A specialty is helping
a product company to expand markets in China and Japan.
Center, Suite 102, Princeton 08540. Harry Brener, chairman. 609-921-2001;
fax, 609-497-0998. Home page: www.tmflp.com
Technology Management and Funding (TMF) was founded in 1990 to uncover
and introduce breakthrough technologies, while providing commercialization
and funding solutions that foster accelerated growth for early-stage
technology companies. It moved from Research Park to Princeton Overlook
earlier this month.
There are very few conventional funding sources available for early-stage
companies. This significant void in funding prompted TMF to develop
an alternative method to the conventional routes for bringing technologies
to the marketplace, building companies, and obtaining funds.
TMF establishes relationships between early-stage technology companies
and major corporations that can involve, among other things, a joint
venture, a licensing agreement, or a development contract for a defined
market sector. The process allows the early-stage technology company
to obtain market access, credibility, and funding without losing control
of the company. The corporation, in turn, receives access to a pre-screened
and proven technology, a competitive advantage, lowered risk, and
increased market share.
TMF reviews in excess of 1,000 technologies annually. Its portfolio
companies are concentrated in software, electronics, electronics,
industrial components, environmental technology, telecommunications,
505-C, Princeton 08542. James R. Utaski, partner. 609-806-0002; fax,
Whitestone Capital funds companies that will benefit from investment
concurrent with board member addition.
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