It began in the Worst of Times. Three years ago, the biotech bubble had burst and we were well into the “nuclear winter” biotech VCs still speak of only in hushed voices. The angel group we were involved in had made only a single investment in three years and they were terminating their only paid employee. So what were we thinking when we had that first conversation at Kincaid’s about – dare we say it aloud? – starting a new angel organization focused solely on early stage life science investments? Was there a real need? Were there enough angels willing to write checks to make it worth while? Was there high quality deal flow to be had? And could we get sufficient sponsorship funding to keep operations going?

We didn’t know the answers, but we were driven by the personal desire to see a more robust deal flow, and we were brash enough to think there might be others like us. And we believed there was a need – the ever-widening gap between grants or friends-and-family money to VCs, who had all moved down stream to clinical stage companies. There was also a backlog of under-funded technology coming out of the universities, institutes, and incubators. Plus we had the unique opportunity to hire the managing director from the former group who knew the ropes and was loved by the membership.

So, with typical entrepreneurial optimism and zeal, we launched Life Science Angels, Inc., in January 2005. Within two months we had our first member meeting with over 85 attending, and the energy was almost palpable. We funded our first deal shortly thereafter – CoMentis (then Athenagen) which subsequently raised over $50 million from Sanderling and was featured in BBN in October 2006. And the successes continue, as shown by a more recent story, Zogenix, featured as this month’s Spotlight Company. [Editor's note: See www.BioBusinessNews.com for these references to early BBN stories.]

Now it is the Best of Times. It’s been two-and-one-half years, and we’ve put almost $12 million into 16 companies which have raised an additional $300 million in funding. We have over 120 accredited investors as members, all experienced life science industry veterans, plus 15 major life science VCs. Our 14 marquee sponsors enable us to keep the wheels on the bus and even occasionally throw a wine tasting, bocce ball tournament or holiday party.

So what is the moral of the story? Just that organized angel investing – the kind that brings the leadership, connections and capital necessary to ensure companies will bridge the funding gap and reach valuation inflexion points – is alive and well. And that investing in early stage life science remains an area of high interest to those who understand and appreciate the risks, the extended time frames, and potential rewards associated with our industry.