Clare Terlouw, Head of LifeArc Ventures, on Bridging Biotech’s Funding Gap & Investing for Impact
Feb 26, 2025
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Clare Terlouw, Head of LifeArc Ventures, brings over 15 years of biotech financing expertise to the table. She shares her journey from physiotherapy to leading investments in biotech innovation. The discussion dives into LifeArc's unique approach to bridging the funding gap in biotech, addressing the challenges faced in transitioning academic research to commercial success. Clare also emphasizes the importance of strategic philanthropic investment and highlights the growing opportunities within the UK biotech landscape for sustainable impact.
Clare Terlouw emphasizes LifeArc's strategic role in bridging the funding gap for biotech by enhancing research readiness for commercial investment.
The podcast highlights the necessity of educating limited partners on biotech's unique opportunities to foster their engagement and confidence in the sector.
Deep dives
Claire Turlow's Unique Journey in Venture Capital
Claire Turlow brings a diverse background to her role as head of ventures at LifeArc, having transitioned from a career in physiotherapy to investment banking focused on healthcare. Her passion for the challenges faced by biotech companies in raising capital led her to venture capital, where she sought to merge her insights from both healthcare and finance. At LifeArc, she focuses on establishing a sustainable financial strategy within the charity, particularly after the monetization of its royalty stream from Keytruda, which significantly increased its financial capacity. This transformation underscores her commitment to fostering innovation in the life sciences while managing the financial sustainability essential for a charity.
LifeArc's Focus on Translational Research
LifeArc plays a pivotal role in bridging the gap between academic research and commercial funding through its translational research initiatives. The charity runs grant funding programs targeting areas like chronic respiratory infections, neglected tropical diseases, rare diseases, and pediatric oncology, prioritizing projects that lack sufficient early-stage funding. This strategic focus aims to advance research that may not attract immediate commercial interest, thereby addressing critical unmet patient needs. By working collaboratively with other charities and funding organizations, LifeArc helps enhance the potential for transformative breakthroughs in healthcare.
Navigating the Challenges of Biotech Investment
The landscape of biotech investment is marked by a notable funding gap, particularly in the UK, where academic research often halts before becoming viable for venture capital. This gap exists due to a combination of limited access to grants and a lack of necessary data for VCs to assess the potential of emerging research. LifeArc addresses this by funding translational projects to enhance their readiness for commercial investment, while also tackling broader market dynamics that affect funding allocations. The charity's efforts aim to create pathways for more effective investment in underrepresented therapeutic areas, thereby driving innovation within the biotech sector.
Strategies for Engaging Limited Partners in Biotech
To enhance limited partner (LP) participation in biotech, there is a crucial need for education regarding the sector's unique opportunities and risks. Many LPs are hesitant to invest in biotech due to a lack of understanding and perceived risks associated with the industry. Claire emphasizes the importance of transparency and relationship-building between biotechs and potential investors. By demystifying the investment process and communicating historical return data, LifeArc aims to foster confidence among LPs and broaden their engagement in biotech ventures.
Synopsis:
Host Alok Tayi sits down with Clare Terlouw, Head of Ventures at LifeArc Ventures, to explore biotech investing from an LP perspective. Clare shares her unique journey—from physiotherapy to investment banking and, ultimately, leading venture investments at a medical charity. The conversation delves into LifeArc’s role in bridging the funding gap for biotech innovation, the challenges of attracting LP capital, and the future of biotech investing. If you're curious about how a medical charity strategically deploys capital while fueling scientific breakthroughs, this episode is a must-listen!
Biography:
Clare Terlouw is Head of LifeArc Ventures, responsible for LifeArc’s portfolio of direct and LP investments across the life sciences sector. The venture investment fund focuses on early stage life sciences companies at seed to Series A, with significant follow-on investment reserved for successful portfolio companies.
Clare has significant expertise in funding innovative life sciences companies in the private and public markets. She was previously Head of Corporate Development at Syncona Investment Management Ltd, a FTSE250 healthcare investment trust which builds and invests in life science companies, and has more than 15 years of biotech and healthcare financing experience as a UK investment banker at Nomura, Numis Securities and Peel Hunt. Clare was a physiotherapist in Canada prior to moving into finance.
Clare is a board member of the UK Biotechnology Industry Association and director of a number of venture-backed companies.
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