A UK-based VC wished to invest in a biotech spin-out focussed on the development of R&D tools using induced pluripotent stem cells (iPSCs) as organoids to mimic human tissues. These ready-to-use assays were primarily developed for use in drug toxicity testing, including retinal, renal and skin cell assays. Before committing to an investment, Alacrita was asked to perform a due diligence assessment of the technology and company.
Using three specialist consultants, Alacrita reviewed the technical data and patents for each of the products, in addition to the projected development, timelines and financials. This, coupled with a face-to-face discussion with the company’s management team, allowed us to form a due diligence report covering the following key areas:
Our analysis highlighted several key risks for the investors and company management to consider, and the investment proceeded led by our client.