#AseBioID24 | 'The Investor Day is a reference event for the national ecosystem primarily, but also internationally"
We interviewed Roger Pique, General Partner at Inveready, Bronze Sponsor of the AseBio Investor Day 2024.

Inveready is a venture capital manager with different strategies (Life Sciences, ICT, Infrastructures, Alternative Markets, Private Equity, Venture Finance, Family Offices management, etc.) within the alternative asset investment segment.
The company began its activity in 2008, initially focusing on early-stage technology companies. Subsequently, it developed new financial products and investment verticals, providing financing solutions to companies throughout their lifecycle. As of today, the company has surpassed €1.4 billion in assets under management and has more than 1,000 clients.
Inveready's journey and experience position the venture capital manager as a first-hand witness to the evolution of companies in the biotechnology sector, as well as a key player in understanding the characteristics and needs of biotechnological innovation in terms of financing. This perspective is analyzed by Roger Pique, General Partner of Inveready, in this interview conducted on the occasion of the upcoming edition of the AseBio Investor Day, a benchmark meeting point between investors and Spanish biotech companies to be held on May 15 in San Sebastián/Donostia, and of which Inveready is a Bronze Sponsor.
AseBio: You invest in newly created technology companies. What are the criteria you follow to select these companies?
Roger Pique: From our investment fund Inveready Biotech IV, which we recently launched in the biotechnology and life sciences segment, we mainly invest in therapy development companies in seed and Series A rounds. These companies must have generated solid proof of concept of in vivo efficacy and initial toxicology. We are interested in projects that address a relevant clinical and market need.
We also invest in bioprocessing companies, medical technology, and consumer health with initial commercial traction. We aim to support these companies in their organic growth process to consolidate sales and achieve profitability.
AseBio: Access to financing is a cornerstone of the biotechnology sector, where most companies are SMEs with disruptive R&D projects that require substantial investments and extended timelines before they can deliver their first marketable results. What is your experience with the biotechnology sector?
Roger Pique: We have been investing in life sciences and biotechnology for over 15 years. With Inveready Biotech IV, we are now in the fourth generation of funds within this vertical. The first fund from 2008 is already closed with returns exceeding 5x, and the second, from 2013, is in the process of closing this year, where we also expect to achieve significant multiples. In this way, we have successfully closed the cycle for these specialized vehicles, which is often the most complex task for a manager. We have focused on seed or Series A stage companies, having financed more than 50 companies to date, completed transactions in more than a dozen exits, and licensed assets in 5 companies.
Fortunately for the sector, while in 2008 there were only two or three specialized funds in this type of investment, we have seen how the market has evolved, and there are increasingly more professional investors. Similarly, today, companies and especially teams, are much more prepared.
Furthermore, public financing initiatives, through grants or soft loans, have positively favored the development of the biotechnology industry in Spain. These are attractive instruments for financing proof-of-concept in early stages, but also to complement private financing.
AseBio: What are the main challenges that biotechnology companies face in terms of financing?
Roger Pique: In a macro environment less favorable to alternative assets, what we are seeing in the sector is that companies have difficulties in raising their capital rounds, which is important because it impacts the historical strategy of how the sector has been financed. At Inveready, we have historically tried to be less dependent on this external financing, either through a systematic search for public funding associated with R&D or because we have opted for very efficient capital strategies. This situation obviously affects venture capital funds that are currently raising capital in this sector. This has resulted in fewer new operations being carried out by the funds, which have focused on supporting their existing portfolio companies.
Additionally, we have noticed a general adjustment of market valuations across all subsectors of biotechnology and life sciences. The prices paid in the years 2019-2021 were higher than what the market offers today. This means that companies closing rounds currently receive limited value recognition, and now more than ever, companies must try to finance themselves in a smart and efficient way.
On the other hand, we have seen an increase in both the number and quality of biotechnology projects we receive. This translates into greater competition within the sector to attract private funds. The level of demand for technology and results from companies by investors for investment is increasingly high.
AseBio: The sources of funding for biotechnology companies have expanded in recent years. What are the current alternatives to traditional sources of funding?
Roger Pique: Regarding public funding, fortunately, the market has benefited and continues to benefit from programs that provide direct funding to companies in the form of grants, soft loans, and equity, as well as indirect investment through fund-of-funds programs. These programs have historically proven useful for companies as an alternative or complementary source of financing.
As for private financing, while equity investment is the most common tool in early stages, more mature companies have found debt financing or convertible instruments to be effective and interesting. Of course, secondary listed markets such as BME Growth play a role for companies of a certain size in later stages, although currently limited to certain sectors. Companies in our portfolio, such as Atrys or Natac, have gone from start-ups to established companies using funding sources such as equity, venture debt, convertible bonds, and then listing on BME Growth.
AseBio: What role do specialized venture capital funds play in the development of biotechnological R&D+i?
Roger Pique: Our funding aims to generate results, scientific evidence, and validation to achieve significant value milestones. First through laboratory studies, in vitro and in vivo, and later in clinical trials. These milestones are what unlock a potential transaction or subsequent round. Without this initial push, these results would not reach the market, i.e., the patient. Without this prior innovation, which functions as a virtuous circle, we also do not believe that other companies and new business models would be generated, benefiting from the positive externalities that this market generates. For example, our second fund has generated more than €200 million in R&D investment and more than 2,000 direct jobs. This, beyond the associated return to the invested companies, has a long-term return to the market.
AseBio: The AseBio Investor Day stands as one of the most important meeting points between investors and biotechnology companies, with innovation as the common thread. What opportunities does an event of this nature offer?
Roger Pique: It is a good opportunity to meet and stay in touch with other venture capital funds and other investors focused on this industry. It's our chance to engage with the ecosystem, learn from the sector's best practices, and collaborate on strategies that benefit it. It's also an efficient way to discover new companies as deal flow sources, establishing initial contacts, or following up on those we already know and fit our investment thesis.
AseBio: What do you expect from participating in an event like this?
Roger Pique: We expect a dynamic environment with a significant influx of investors, companies, suppliers, and other stakeholders, in an event that serves as a reference for the national ecosystem primarily, but also internationally.