Armed with fresh funding, Innova prepares to launch investments in promising biotechs - Memphis Business Journal:

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million from MemphisED last month and it now hasa driver. He'x beginning to decide what to take to the That driver is formerSmith Nephew, Inc., executive Ken He says Innova will invest in two companieas in the next three months and hopes to invest in three to four companies a year in the next five "My ambition is clear: find, fund and Woody says. He's gotten help on the finding Ideas from several companies have poured in sinc e Innova was announcedlast month. He is pleasee with the initialseed capital, but hopes to raiswe about $30 million when he openws the fund to new investorsa in the next few weeks.
Woodu is seriously looking at three companies now and is making headwah intoinvesting Innova's first dollar. He'll do that with the help of an investmenyt board of Memphis business professionalse withdiverse backgrounds. Woody says he'a not yet ready to announce the names ofboards members. Sam Chafetz, an attorney with Donelson, Bearman, Caldwell & Berkowitz PC, has workedr with numerous start-ups in his 36 years of He says they typically fail due to lackof "But to have a ton of moneh available and all of that expertise attached is a boon to the area wherwe that money lies," Chafetz says.
"Withu the experience (Innova) has, it looks like it will be spenr wisely." Innova will invest in bioscience orpharmaceuticalp companies, medical device companies and possibly medical equipment companies. Woodu says it's important to diversifyy the investments should a marke tsegment tank. Also, he wants companiews that can get tomarket "Some of the companiesd we are looking at now can quickly have a ... liquidityg event, an (initial public offering), they can get bought up or they'l l license their products to someone he says. "All of those thinges bring a significant amount of capital back tothat company.
So if I own 25%, 30%, 40% or 50%, then it comexs back to (Innova) and my It gives them a good rate of return and it alloww me to keep thatcycle going." The rate of investmenf will depend on how developed they are. The firms trade ownership to Innova forits "When you look back at Memphis, we have a phenomenal history of entrepreneurship," Woody says. "Bu over the last few years a lot of that reall has diedand we're tryingy to turn that around." Address: 20 S.
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