Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

Why is Verdis Investment Management VP Jamie Rhode targeting $250 million for therapeutics?

27 Oct 2022 · 1 min

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In this interview segment, the speaker explains the concept of therapeutics and life‑science investing for listeners unfamiliar with the field. They note that therapeutics—drugs and treatments for disease—are a capital‑intensive, time‑heavy sector because of the unique, lengthy FDA approval process. Consequently, Verdis Investment Management’s strategy, as articulated by VP Jamie Rhode, is to allocate roughly $250 million or less across about 15 portfolio companies in this space. This contrasts with general‑tech investing, where capital requirements are lower and product cycles faster, allowing for software or consumer‑product ventures. The speaker emphasizes that the high cost and regulatory hurdles make therapeutics a distinct, specialist‑focused investment category.

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For the context of our listeners who might not know what therapeutics are, can you explain what that means? You know, we want exposure to all the sectors that exist today and all the sectors that exist in the future from now. Therapeutics or life sciences in general really meant targeting specialists because it is more capital intensive. When it comes to life sciences, I'm actually probably targeting $250 million or less, and I'm seeing on average 15 portfolio companies just because the cost of startups there or the time intensity in regards to getting FDA approvals is super unique and much more differentiated than general tech, where in general tech you could be creating a piece of software or you could be creating a consumer product. But in therapeutics, that's a branch of medicine that's concerned with the treatment of diseases. And, you know, it's a treatment or a therapy or a drug.