Longevity & Biotech Pre-IPO

Biotech Crowdfunding

Platforms like Bioverge, AngelList.

Investment Overview

Biotech crowdfunding enables retail investors to back early-stage life sciences companies via equity (Regulation CF, $100-$5K) or revenue-share agreements. Leading platforms: Republic ($100+ minimums, 30+ biotech deals), StartEngine ($100+ minimums, biotech/longevity focus), Wefunder (biotech therapeutics, $100+ minimums). Typical raises: $500K-$5M per campaign, 10-30% equity or revenue share. Investment thesis: Democratize biotech investing, previously limited to accredited angels/VCs. Reality: 90-95% failure rate, but winners deliver 10-100x returns (Moderna $23 IPO → $450 peak = 19x in 3 years, though post-COVID corrected). Suitable for <5% portfolio allocation, lottery ticket mentality.

Market Context & Trends

Regulation Crowdfunding (2016) opened biotech investing to non-accredited investors. Republic led with 30+ biotech raises totaling $100M+ (2017-2024). However, few exits: Most companies still private, some failed (no liquidity), rare secondaries trade at 50-80% discounts. Success story: Elio Motors ($17M raised) failed to deliver product—investors lost 100%. Biotech-specific challenge: $50M-$500M required to reach FDA approval; crowdfunded $1-5M barely covers 12-24 months R&D. Follow-on institutional funding critical but scarce (95% don't secure Series A).

How to Invest in Biotech Crowdfunding

Republic Biotech: 30+ deals including longevity, diagnostics, therapeutics, $100-$5K per deal

StartEngine Biotech: 10+ biotech campaigns, equity or revenue-share, $100+ minimums

Wefunder Biotech: Therapeutics, diagnostics, medical devices, $100-$1K minimums

SeedInvest (acquired by Circle): Historically biotech deals, now focused on fintech/crypto

MicroVentures: Accredited platform but some Reg CF biotech deals, $100-$5K minimums

Key Platforms & Access Points

Republic: Largest equity crowdfunding, $100+ minimums, 1M+ investors, 30+ biotech deals

StartEngine: $100+ minimums, 500K+ investors, biotech/longevity sector focus

Wefunder: $100+ minimums, 1M+ investors, therapeutics and diagnostics deals

SeedInvest: Now Circle-owned, historically strong biotech pipeline, $500+ minimums

MicroVentures: Hybrid accredited/non-accredited, $100-$1K minimums, selective biotech

Key Investment Metrics

Valuation: Pre-money $5M-$20M typical for preclinical; >$50M = overvalued unless Phase I data

Capital efficiency: How far does $1M-$5M crowdfunded capital take company? 12-18 months realistic

Scientific team: PhD founders with track record (published in Nature/Science) vs. first-time entrepreneurs

IP portfolio: Patents filed/granted covering mechanism, formulation, indications; without IP = no moat

Clinical trial plan: Clear path to Phase I/II; FDA IND (Investigational New Drug) application timeline

Risk Considerations

Understanding these risks is critical before investing in biotech crowdfunding.

Failure rate: 90-95% of crowdfunded biotechs fail; most never reach Phase I trials
Illiquidity: Average 7-10 year hold for exits; most never exit, capital permanently lost
Dilution: Follow-on institutional rounds at higher valuations (Series A, B) dilute crowdfund investors 70-90%
Valuation risk: Many campaigns overvalued at $20M-$50M pre-money with only preclinical data
Platform risk: If Republic/StartEngine shut down, shareholder rights enforcement unclear

Related Investment Opportunities in Longevity & Biotech Pre-IPO

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