WHO WE ARE

Capital Cell is Europe’s first equity crowdfunding platform specialised in life sciences.

From our offices in Cambridge and Barcelona we source innovative, early stage companies in biotech and healthcare from across Europe for listing on the Capital Cell platform: www.capitalcell.co.uk

We focus entirely on companies whose technology is based on biology or health care, including therapeutics, diagnostics, medical devices, digital health, agritech and software / artificial intelligence.

We have a unique method for performing multilevel due diligence, involving the crowdsourced wisdom of a community of BioExperts.

 

We are proud to be a specialised platform. Over half our team are life science PhDs or clinical medics and we work closely with partners throughout the life sciences ecosystem to bring highly curated investment opportunities. Almost all our UK companies are eligible for (S)EIS tax relief.

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Seed-stage life sciences businesses saw a 19% increase in deal numbers in 2016 (vs. a decrease of 18% across all sectors) and a record £202m invested in the UK.

The 5 year survival rate of life sciences companies is significantly higher than other tech-based industries. Only 7% of UK life sciences companies that raised funds in 2011 no longer existed in 2016 and the failure rate dropped to 4% for recipients of an Innovate UK grant.   This compares to 12% of technology companies (21% of CleanTech) and 21% of media companies.

Big pharma are buying more assets at earlier stages of development, reducing the potential exit horizon for therapeutic products. Between 2009-2013 only 9% of pharma M&A deals were for pre-clinical assets. In 2014-2015 this figure rose to over 20%.

The listed healthcare sector outperformed for investors; over 3 years to the end of 2016, the FTSE Healthcare AIM and FTSE Healthcare All Share Indexes have outperformed wider indexes +48% and +16% respectively, compared to +7% for the FTSE All Share Index.

The value of global biotech sales has risen every year since 2010 and is predicted to keep rising. Biotech drug sales were an estimated $289 billion in 2014 and are projected to grow to $445 billion by 2019.

An exceptionally strong science and research base, with >5,100 companies generating £63 billion annual turnover.

The largest biotech therapeutic pipeline in Europe, developing over 800 product candidates in 2016.

The UK has positions 2 and 3 of the world’s top 5 universities for life sciences, providing an exceptional talent pool of early innovators.

Both the commercialisation of scientific innovation and life sciences have been identified as key factors in the UK government’s Industrial strategy, ensuring continued investment in the UK for the foreseeable future.

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HOW WE DO IT

As a specialist platform, we are passionate about life sciences innovation and are deeply involved in the life sciences scene. Most of our investee companies come through personal referrals.

We perform unique multi-level due diligence on companies prior to listing on the Capital Cell platform:

1) In-house analysis of science, product development and financing plans, commercial opportunity, intellectual property and competition.

2) External structured review by the Capital Cell BioExpert Network comprising >900 PhD scientists, senior clinicians, IP lawyers and industry professionals.

3) Internal board level investment committee approval for listing.

4) Lead investors validate valuation and perform their own due diligence

5) Documentary & financial due diligence

* Many of the companies listed on Capital Cell have also received competitive Innovate UK funding, where a further panel of experts has independently judged their innovation. Innovate UK funding is associated with significantly lower company failure rates.

45%
Rejected

About half the projects we receive are rejected in a first in-house analysis

65%
Rejected

The BioExpert feedback rejects a further 20% of projects, generally for scientific or go-to-market reasons

92%
Rejected

Projects without a lead investor are not approved for due diligence & funding

97%
Rejected

Documentary checks & due diligence sometimes reveal fatal flaws – about 5% of all projects are rejected at this point

3%
Published

About 1 in 30 projects are deemed investable and published on our platform

Despite the attraction of investing in life sciences, the sector has traditionally only been open to a small number of individuals with a high level of technical expertise and large sums to invest.

Capital cell exists to open life sciences investment to everyone.

The Capital Cell investment platform provides a simple, transparent and regulated way for anyone to invest alongside institutional and experienced life sciences investors, with investment opportunities starting at £300.

1

We have gathered  a community of experts in life sciences and the commercialisation of life sciences, including PhD level scientists, senior clinicians, tech transfer specialists, IP lawyers, VCs and pharma corporate venture scouts.

2

Companies are assessed based on experts’ opinions of the credibility of team, the science, their innovation, business model and overall chance of success.

3

The BioExpert Network uses the wisdom of experts to help Capital Cell filter and screen the companies we are working with. Experts are thanked for their contribution with credits to invest on the Capital Cell platform.

4

We believe in transparency – the company receives all the feedback the BioExperts give Capital Cell and the BioExpert assessment scores are shown alongside the company information on the Capital Cell platform.

EIS

EIS Relief

> Income tax relief at 30% of amount invested (£1m max annual investment)

> Exemption from capital gains tax on disposal of shares if held for 3 years.

> CGT deferral – payments of CGT can be deferred when the gain is invested into an EIS opportunity. The CGT is then paid upon exit.

> Loss relief – should a company fail then the net loss (i.e. after the benefit of the upfront tax relief) can be set against income tax.

> IHT planning – no IHT is paid on shares held in EIS companies if held for at least two years and they are still held at the time of death.

SEIS

SEIS Relief

> Income tax relief at 50% of amount invested (£100k max annual investment)

> Exemption from capital gains tax on disposal of shares if held for 3 years.

> CGT reinvestment relief – 50% of a taxable gain in a tax year is exempt from CGT provided the above SEIS income tax relief is also claimed on that investment.

> Loss relief – should a company fail then the net loss (i.e. after the benefit of the upfront tax relief) can be set against income tax.

> IHT planning – no IHT is paid on shares held in SEIS companies if held for at least two years and they are still held at the time of death.

IAN TOMLINSON

Chairman UK

Ian has over 25 years of experience in the life sciences sector, from academic research to biotech startup to big pharma. Founded Domantis Limited with Sir Gregory Winter, acquired by GSK for $454 million. He is the former Senior VP, Head of Worldwide Business Development and Head of Biopharm R&D at GSK. Now Chairman of the Stevenage Bioscience Catalyst and the Investment Committee for Apollo Therapeutics.

DAVID FORD

Non-executive Director

David has spent 20+ years in the City / US (San Francisco) across a range of investment management roles, latterly as Managing Director at Intermediate Capital Group. David came out of a full time role with ICG in Jan 2016 to concentrate full-time on angel/early-stage investing, with a focus on life sciences. He has been an angel investor for a few years, is increasingly active as a lead investor and even takes Board positions, where his financial services / investment background is of particular use to a company.

NIGEL FLEMING

Chairman Spain

He has a PhD from Cambridge in Biochemistry, with a lifetime experience in life sciences start-up companies. A Board member for 12 companies and founder of 7. Founded and sold Athena diagnostics for $740M. Lecturer at Harvard Medical School and ESADE Business School (Barcelona), has chaired symposia at numerous conferences and judged many entrepreneurship competitions. Named on 8 patents and was included in the Who’s Who of Cambridge in 2011.

XAVIER CASTELLS

Non-executive Director

Xavier has an MBA from ESADE in Barcelona and a Masters in International Management from the University of Thunderbird in Phoenix, Arizona. He has vast experience in directing companies that specialise in the banking and investment sectors. He is on the board of a large number of companies (including Capital Cell), encompassing the fields of technology and life sciences. Currently he is Chief Financial Officer of InKemia and has been working with them since 2002.

JORDI RIULAS

Advisor

Jordi is Entrepreneur in Residence at the centre for Genomic Regulation in Barcelona, working with TBDO to identify opportunities
within the biotech market. Jordi and Joan bring a highly successful partnership, extensive experience, a passion for biotech and
the know-how to successfully build a company from inception to exit. Both have personally invested €100k in Capital Cell.

JOAN MARCOS

Advisor

Joan and Jordi have worked together for over 20 years and have successfully co-founded and sold two companies for multi-million $ exits. Joan is a Senior Software Developer with experience in analysis, design, development, testing and implementation of various internet-based applications.

SUCCESS RATE

As of August 2017 Capital Cell has successfully closed 15 campaigns with a success rate >80% for companies seeking investment through the platform.

MONEY RAISED

We have directly raised over £3.8 million for life science innovation.

SINCE 2015

Operational for only 2 years, Capital Cell has already achieved its first partial exit (ZeClinics share buy-back) at a 2x return for investors.

PARTIAL EXIT

No company we have funded has failed to date, and two have gone on to raise Series A capital.