Karolinska Development and Karolinska Institutet Holding AB, a company wholly owned by Karolinska Institutet (KI) have signed a new non-exclusive deal flow agreement.
This agreement is a key element of a new strategy designed to improve the translation of medical innovations originating from KI into commercial enterprises that can generate value for all stakeholders. As part of the new agreement, KI, via its holding company KIHAB, plans to establish a new incubator fund initiative focused on identifying potentially valuable new medical innovations at KI at an early pre-seed stage and providing the project management and funding to establish a strong commercial proposition prior to company formation. KD will be a cornerstone investor in the new incubator fund alongside a select group of other specialist life sciences investors. Given its strong relationship with KI, and its investment in the fund, KD expects to continue investing in the most promising investment opportunities generated as a result of this new fund.
“Today’s announcement is a further step towards our vision of becoming a leading Nordic venture capital company. We are convinced this new agreement will be of benefit to both KD and KI as we work to build successful, valuable businesses based on KI’s world-class science. By investing in the new pre-seed fund that KI plans to set up in collaboration with KD, we will continue having access to new high-quality opportunities based on the world-class innovation originating at KI that will have undergone rigorous evaluation to determine their feasibility and commercial potential. In addition, this new incubator fund will provide these opportunities with exposure to a broader group of experienced life science investors for later syndication, spreading risk, benefiting from networks and experience, and improving their chances of success,” says Jim Van heusden, CEO of KD.
“This new agreement is designed to benefit both KD and KI. KD will have more freedom and capacity to invest in opportunities from across the Nordic region, while we will be able to fill the innovation gap with access to more funding from a broader range of sources, which will drive the formation and development of a new wave of high-quality projects and companies out of KI. We fully expect KD to continue being an important investor in some of these new businesses as part of its strategy to deliver attractive returns to its shareholders. The new agreement strongly supports the agenda to create a stimulating hub at KI, unlocking the untapped innovation potentials of its local and global partners,” says Alexander Von Gabain, Deputy Vice-Chancellor for Innovation and Commercial Outreach at KI and Chairman of the Board of KIHAB.