BII brings international capital to the Danish life science ecosystem

This post is also available in: Danish

Denmark’s world-leading life science research must result in startups, spinouts and new technology – both nationally and internationally.

That has been the mantra of the BioInnovation Institute (BII) since the Novo Nordisk Foundation established the fund and acceleratorAn accelerator is an intensive program that provides startups with mentorship, education, resources, and sometimes funding to accelerate their growth. More in 2018 with commitments of up to DKK 3.5 billion over ten years. The ambition is to create a world-class Danish life science ecosystem.

And to succeed, it requires young companies to have an international starting point, Jens Nielsen, researcher, professor and CEO of BioInnovation Institute, says.

“In pharmaceuticals, healthcare solutions and new bio-based solutions, startups need to have an international outlook. The common denominator for all the entrepreneurs we bring in is that they don’t just think Denmark or Scandinavia. They work on the basis that their solution can make a difference on a global scale.”

That is why BII has established a large investor network consisting of 150 investors from all over the world who are updated monthly on the fund’s startups, spinouts and scaleups. This is a way of maintaining a strong connection to international capital, Jens Nielsen explains.

“Today, we are the bridge between the early startups and the international investors who have long had difficulty gaining insight into the early Danish life science scene. They now have that access through BII. And because we validate, analyze and perform due diligence, they can far more easily make qualified investments in the Danish ecosystem.”

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BioInnovation Institute

• BII was established in 2018 with support from the Novo Nordisk Foundation to commercialize life science research.
• In total, BII has supported 130 startups and translational projects with almost DKK 750 million. In total, start-ups have raised almost DKK 4.5 billion so far.
• BII supports startups and translational research projects in areas such as the development of new drugs, health technologies, women’s health, bio-industrial production and quantum technology.
• BII is centrally located in Innovation District Copenhagen and serves as a natural hub for the nearby research institutions and hospitals.

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Startups built the right way

One of the investors that benefits from BII’s network is the investment fund Climentum Capital, that invests in impact companies across Europe.

The investment cases that are presented through the fund are far more qualified than they typically receive, says Stefan Mård, Partner at Climentum Capital.

“I’m sure that the companies that are admitted to BII are far above the average of our “cold incoming” deal flow. Companies that go through BII are also more likely to have clean and good ‘cap tables’. And they are more likely to progress quickly in their research and development track because of the fantastic facilities at BII.”

In particular, the way the companies are structured stands out, he says.

“They (BII, ed.) have great coaches to help them build all the other muscles required to be successful. So I guess I would summarize it this way: being part of BII as an investor means I get access to higher quality opportunities at better prices.”

Turning the dynamic on its head

On the other side of the table, it is just as valuable.

The connection to investors ensures the constant development of a startup, says Jordan Turnbull, co-founder of gene therapy company Fuse Vectors, which is based at BII.

“Presenting a business proposal to investors at different stages of our company’s development is incredibly empowering. By taking their feedback, we can refine our offer. During the process, we gain insight into the specific interests of each investor and we begin to see the nuances of investment ideology across geographical regions.”

Jens Nielsen, CEO of BII, recognizes this strength. This is precisely why it has been important to ensure that the relatively small amount of venture capitalFuel for startups' rocket ride. Venture capital is pro investors who create pool funds to seek innovation, and to mentor. It is high risk, high reward journeys.... More in Denmark does not become an obstacle for Danish life science startups, he says.

“Being a small country with relatively few investors is always a problem. In the past, Danish startups have had to convince a Danish investor, who then got international syndicates on board. We have turned that dynamic on its head. Now companies have direct access to foreign capital.”