Investment Criteria

Pappas Ventures invests exclusively in the life science sector – biotechnology, specialty pharmaceuticals, drug delivery, medical devices and related ventures. And within this field we have special interest and expertise in companies with products or technologies at the pre-clinical, Phase 1 or Phase 2 stage of development. We’re very aware, however, that in today’s environment, product stage and company stage no longer completely correlate. And while we invest across the spectrum of bare-bones start-ups to well-established companies, our sweetspot for entry remains Series A and Series B rounds.

We act as lead or co-lead investor for about a third of the deals we do. But even when we don’t play the lead role, our portfolio companies can expect us to be actively involved in contributing to their growth and development.

We typically pursue early to mid-stage investments throughout North America that will benefit significantly from our involvement. We invest anywhere from $100,000 in a seed deal to as much as $6 million in a later-stage mezzanine transaction.

When evaluating potential investments, we focus first and foremost on the quality and experience of the management team. A candidate company's key managers should have a proven track record, an exceptional ability to communicate the company's story to various audiences, and a deep commitment to creating value for shareholders. We also look for a strong proprietary position; a large, clearly defined market for the company's products or services; and a realistic, timely exit strategy for achieving liquidity for investors. Because Pappas Ventures is an active, involved investor, we seek management teams with whom we can have a true and successful partnership.