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Venture Capital Profile: RA Capital

RA Capital: Evidence-Based Investing

In the face of ever-evolving health crises and challenges, many investors are focusing their resources on companies that can bring revolutionary solutions to the healthcare sector. One such company is RA Capital.

RA Capital Management, LP (“RA Capital) is a multi-stage investment manager. It provides funding to public and private healthcare, life sciences, pharma, and biotech companies for developing drugs, medical devices, and diagnostics. 

RA Capital, founded in 2001, is led by the managing director of the company, Piter Boelhouwer, and its managing partners, which include Peter Kolchinsky, Rajeev Shah, Andrew Levin, Josh Resnick, and Ryan Berry. 

What makes RA capital different from the other investors is its leaders’ expertise in RNA, protein-folding correctors, and gene therapy. This, combined with finance and investing expertise, brought the company to $4.6 billion in assets under management (AUM) as of 2021.

If your lab needs high-quality equipment but needs to extend its cash runway, consider leasing through Excedr. We can help you get the lab equipment you need at an affordable rate, saving you money for other critical areas and adding time before you need to start a new round of funding.

RA Capital Management’s Nexus Funding Strategy

RA capital has a flexible investment strategy for seed funding healthcare companies. It practices evidence-based funding in public and private life sciences companies in order to drive value creation from inception to commercialization.

RA Capital Nexus fund is a natural extension of RA Capital’s platform—a source of more private capital rather than a separate strategy. It enables RA Capital to take larger positions in high-conviction investments. And it provides private companies with a reliable source of capital, particularly during the drawdown in the public market, such as a market correction. 

According to a report, RA Capital Nexus Fund, L.P. (“Nexus I”) raised $300 million of capital in 2019. Further, the fund has invested in 18 distinct therapeutic areas and funded 59 companies in its 15 months. 

The other RA Capital fund, RA Capital Nexus Fund II, L.P. (“Nexus II”), raised $461 million at the end of 2020. Similar to Nexus I, Nexus II invests in private companies backed by RA Capital’s evergreen fund.

Venture with RA Capital

RA Capital creates opportunities for public and private companies, whitespace ventures, newcos, and biotech, pharma, or academic spinouts to develop and grow their own companies. It’s focused on finding, funding, and building companies that are involved in developing life-changing innovations in human health and diagnostics.

From 2012 to 2020, RA Capital has invested in 149 companies, out of which 72 have gone through an  IPO or were acquired. 

But how does RA Capital decide which startup to invest in? And why might you, as a founder, want to work with RA Capital? The answer is in its outstanding TechAtlas framework.

The TechAtlas research division, led by seasoned managing directors and experienced entrepreneurs, is at the core of RA Capital. It maps out competitive landscapes to put data into context, identify breakthroughs, and support new ideas. Moreover, it provides market intelligence, technical diligence, and other resources to both its internal investment team and portfolio companies.

Through the TechAtlas framework, RA Capital gives you an insight into each problem you can solve with your idea or technology. For example, it highlights the most impactful idea and its potential to create higher return values, thus allowing you to invest your time smartly. 

So, if you belong to any of the three following categories, RA Capital can help you achieve your vision by taking the lead on financing, technology transfers, incubation, strategy, and hiring.

  • Academics
  • Entrepreneurs
  • Executives and Scientific Leaders

Crossover/Venture Investments

Crossover ventures include private companies funded by RA Capital. Some of its example companies include AAvanti Bio, Cytek, Civi Pharma, Enara Bio, Interius, Nimbus therapeutics inc., Vividon, and Xilio therapeutics.

Companies That Have Gone Public or Been Acquired

These companies include any that have gone through initial public offerings or have been acquired by another company. There is a long list of companies invested by RA Capital that reached IPO statuses, including Akouos, Atea Pharmaceuticals, Iteos Therapeutics, Kala Pharmaceuticals, Nkarta Therapeutics, Orchard Therapeutics PLC, Phathom Pharmaceuticals inc., Solid Biosciences Inc., Vaxcyte, and Vor Biopharma Inc.

Education and Knowledge with RA Capital

While accelerating your company’s operational growth and development, RA Capital provides several courses, perspectives, and innovator resources to aid in all of your projects. They help you prepare creative solutions for future healthcare innovations and become a leader in your respective research area.

RA Capital’s courses are committed to empowering the next generation of biotech leaders. To expand the horizons of knowledge and innovations, it provides a virtual course titled “The Business of Biotechnology”

This course is focused on examining, interrogating, and teaching practical and theoretical concepts fundamental to the biotech industry.

The forum helps graduate students and working professionals to think deeply, question norms, and broaden their expertise.

This collection of writing, together with RA Capital’s outreach efforts,  adds to the vibrant discourse between biotech investors and company builders, as well as with the public. It covers a variety of topics ranging from business best practices to the future of healthcare. It has a useful collection of podcasts, informative articles on healthcare businesses, opinions and inventions, COVID-19 content, and different books for startups’ growth.

The effort of RA Capital doesn’t end with just providing funds. It helps biotech innovators, executives, and company-builders at all stages along the journey from idea to product. RA Capital shares some best practices and introduces new ways to tackle common challenges during companies’ growth and innovations processes.

Learn more about the courses, resources, and RA Capital’s investment strategies at https://www.racap.com/

Don’t have the budget to purchase lab equipment outright? Consider leasing through Excedr to save your lab time and money. Browse your leasing options today!

Excedr Helps Your Lab Secure the Equipment it Needs

RA Capital Management, LLC is a venture capital fund manager that funds unique life science startups and biotechnology entrepreneurs. It goes beyond investing by providing valuable resources, courses, and insights into business development. 

If you’re currently seeking outside investment from a venture capital firm, one way to make your company a more attractive investment opportunity to prospective investors is to lease your lab equipment through Excedr. 

Our founder- and investor-friendly leasing solutions help labs secure the equipment they need to operate without draining cash reserves or adding depreciating assets to the balance sheet. 

In other words? 

Excedr can help you prepare for a successful seed round by increasing the value of your company in the eyes of investors who are taking an in-depth look at all of your financials.

If you have already raised funds with a venture capital firm, you’re in an excellent position to grow your operations. You can often extend your cash runway by leasing your lab equipment. This is what makes Excedr such a beneficial and creative pairing to venture-backed life science companies.  

At the end of the day, how your company has been invested in does not affect your approval, nor does it stop you from needing equipment. We can help you procure cutting-edge technology and equipment on lease to help you focus on your innovative research and reach your goals. 

Contact us today and find out more about Excedr’s customized leasing program.