As reported in PE HUB James said the next specialized fund you can expect the firm to launch from a sector perspective is devoted to life sciences.
“There is an explosion of technology coming out of labs and universities,” he said. “It will be the next big technological revolution that affects all of our lives.”
James also spoke to the massive funding gap: “You have this mushrooming need for capital,” he went on.
He also shared that the pool of capital would go toward growth-stage, early-stage areas, as opposed to traditional buyouts, ranging from the clinical stages all the way through product commercialization and royalties.
This strongly supports the innovative HeartChain model for funding life sciences at early-stage development. The massive funding gap recognized by James, was one of the key reasons HeartChain originally built its unique funding platform.
HeartChain versus Venture Capital
But there is a big difference between the innovative sponsorship model offered by HeartChain and the old-fashioned venture capital model being offered by Blackstone.
Vice-Chairman of HeartChain, Jean-Marc Orlando says, “HeartChain offers innovators an off balance sheet, non-dilutive sponsorship solution, by leveraging blockchain technology and tokenizing the future production of the innovation companies. The tokens represent ownership of an innovative life science product at the anticipated production price. When the new product comes to market, the token can be redeemed at nearly the retail value of the product, or even donated back to the innovation company.”
“With venture capital, the innovation company loses equity in, and often control of, their company. The supplier of venture capital takes out revenue before the original founders of the life science innovation. It can take years before the founders get a return” he said.
“This is why we created HeartChain. It applies a crowdfunding model in which individuals and organizations can participate to help innovation companies bring vital life-saving products to market, without having to chase venture capital or other funds. This means the innovators can focus on their research, not waste time chasing financial backing,” Orlando explained.