BioGenerator, St. Louis’ innovative investment fund for biotech startups, has figured out that money often isn’t enough to launch successful companies.
The fund invested $3 million last year in 16 companies, but it was far more than a passive investor in many of them. Eight of the firms are led by CEOs who came straight from the BioGenerator [underwriting], and three firms were created purposely to address what BioGenerator executives see as promising market opportunities.
Those are departures from the usual venture capital process, in which investors listen to pitches from promising companies and decide which ones to fund. Charlie Bolten, BioGenerator’s senior vice president, says that process still works well for some investments, but he has adapted the fund’s model to fit a couple of realities in the entrepreneurial world.