New Jersey-headquartered Tech Council Ventures is a venture capital firm investing in early-stage enterprise and health technology companies in the U.S.
Jim, since you founded the firm in 2000, Tech Council Ventures has become a significant actor, not only in life sciences, but in the broader business landscape of New Jersey. Can you describe its investment areas?
Tech Council Ventures is an early-stage investor in health technology in the mid-Atlantic region of the United States. Although we are a generalist fund, we are very plugged into life sciences, with major health institutions like Bristol Myers Squibb and Celgene, and insurance companies like Horizon Blue Cross amongst our partners.
Often, we are the first institutional investor in young biotech companies, which is exciting because it puts us at the forefront of innovation. This region is especially compelling for health technology because there is a plethora of big drug companies like GSK, Sanofi, Novartis, and Novo Nordisk, along with strong positioning in technologies like digital health and AI. We also invest in international startups seeking access to the U.S. market, providing the financial support they need to establish themselves here. It is about bringing global innovation to our regional ecosystem.
What are some groundbreaking AI technologies that have the potential to transform life sciences?
AI is transforming drug discovery and development. As an illustration, a local company, Hope AI, is revolutionizing clinical trial design by removing biases and improving outcomes—historically a very manual process. On the patient recruitment side, companies like Array Insights, BEKhealth, and PatientWing are using AI to streamline what has traditionally been one of the biggest challenges in clinical development.
In manufacturing, companies like BioCurie are using digital twins to improve the yield of gene and cell therapies.
At Tech Council Ventures, we use tools like Diligencia to summarize vast amounts of data from diligence reports. AI also helps us analyze transcripts of calls, distilling key points and action items to improve efficiency. It is a game-changer for both the companies we invest in and our own operations.
Tech Council Ventures has recently partnered with BioNJ. Why is this partnership important for the company and for the sector as a whole?
BioNJ is highly respected and has been fostering innovation for 30 years. Our partnership provides entrepreneurs, university spin-outs, and corporate researchers with access to education, networking, capital, and business growth opportunities, while involvement of the New Jersey Economic Development Authority provides public sector support.
The partnership supports our work to scout promising startups, facilitate deals, and provide the support these companies need to succeed in this sector. For instance, the regenerative medicine company EpiBone is pioneering cell-based orthopedic solutions to replace titanium implants. Supporting them requires navigating regulatory hurdles, fundraising, recruiting, and strategic planning. Five of our portfolio companies now trade on the NASDAQ or the New York Stock Exchange, thanks to our funding, board strengthening, and strategic guidance.
The biopharma VC market seems to be stabilizing after some volatile years. With the Federal Reserve’s recent key interest rate cut, how do you evaluate the market going into 2025?
There is a lot of optimism. Over the past month, the market has rebounded significantly, which is a welcome change after some of the worst years for life sciences in decades. Challenges like the Inflation Reduction Act have impacted big pharma’s willingness to take risks, especially if they cannot recuperate their investments in the short term.
Looking forward, this rebound is promising for mergers and acquisitions. Better stock prices and increased cash for potential acquirers could lead to a more dynamic landscape. However, some companies are trading below cash, reflecting the high costs and risks of development.
Treatments for cancer and neurological conditions have enjoyed significant investor interest in recent years. How has Tech Council Ventures built its portfolio in these areas?
Mental health and psychotic disease are a significant focus for us, driven by the fact that the brain is still poorly understood. For example, we invested in Intra-Cellular Therapies, which developed lumateperone for schizophrenia, while it was pre-clinical, and it has since achieved a market cap of $6-7 billion. Companies like Karuna, recently acquired by Bristol Myers for $14 billion, are also revolutionizing treatment with novel approaches like targeting muscarinic receptors.
Cancer is another key area. We are an investor in COTA, which takes real-world data from health systems like Baptist Health South Florida, and uses it to accelerate the path-to-market for new cancer and other drugs.
What advice would you give to biotech CEOs who want to attract VC funding in 2025?
Focus on the customer. Your solution must be better than existing options, with a clear ROI for both your business and the customer. A strong customer base is the foundation of any successful company. Second, embrace complementarity. Recognize your own strengths and recruit team members with complementary skills, whether in technology, financial strategy, or go-to-market expertise. Building a diverse and capable team is key to scaling successfully.
