cloud network hunting note: Peter Thiel create, founder of the funds under the bad environment has helped many biotech companies. He money and courage support research into new drugs and new therapies, promotes the human go beyond the confines of the age.
in 2010, from Brian Frezza and D.J. Kleinbaum from silicon valley to seek better development and 4 hours. Since childhood, this for a best friend is brewing and guarded a common dream, that is to use computer science to treat disease. They started looking for investors from six years ago, at that time, they are only at Carnegie Mellon university computer biological professional two students, but lucky door did not open to them.
Kleinbaum said: “when you are obscure, nobody will invest you, if your name no position title, and no one will support you operate a biotechnology company.”
so after graduation, for the good friend left to Pittsburgh to get of the basic elements for entrepreneurship. Kleinbaum applied for PhD program at Stanford university, at the same time, Frezza to study the Scripps research institute in San Diego. (hunting cloud network editing your note; Scripps research institute is the largest private nonprofit qualitative research institute. In immunology, chemistry and biology experiment) in June 2010, just before Frezza prepare thesis, he said to his mentor, his ambition was far beyond academic.
“at that time he was livid,” Frezza recalled, “he seems to always think before I will be his disciples.”
after several years, the good friend into programming, they want to build a machine biochemistry laboratory, will be completed experiment of speed up to an unprecedented extent. They are going to “biological nanometer technology” for the first time to apply for a patent, they believe, based on the theoretical basis for research and development of new drug can cure AIDS and other resistant virus infection.
Frezza eventually fell out and his teacher, he immediately delay of the dissertation, packed my luggage, driving a road opens eight hours to palo alto, camped out on the sofa of Kleinbaum, struggling to fight for investment for building a company.
computer biologist Brian Frezza (left) and D.J. Kleinbaum is developing AIDS nanotechnology
apparently, their financing business in the right time. Two years ago, vc firms investing in biotechnology industry has plunged by a third, then recovered. Unlike software, biotechnology start-ups especially has the characteristics of high risk and capital intensive, their study time is long, planning is only a blur. Of good friends in the first round of financing from this setback to now have in the past six years, they are now more have the qualification for entrepreneurship, however to meet them is still cold. No one will be the two don’t have any practical experience in their twenties lad bets. Kleinbaum said: “I have already can’t remember how much vc entry, some small, some direct blew us out.”
, they are going to wash his back in Pittsburgh, then go to angel investment and laboratory space. But just as you leave, they are going to last. PayPal co-founder of Max Levchin is Frezza brother’s boss, his brother died of diabetes complications in 2001. Levchin speech at the funeral in and has for years been take care of the Frezza as mentor. Frezza biotechnology company founded to think of themselves and Kleinbaumm plans and Levchin said today (Monday), at once he provide seed money, is more valuable than this, he’ll Frezza and Kleinbaumm introduced to the another PayPal founder Peter Thiel. According to Levchin, Peter Thiel is few intend to “science fiction fantasy things big bets” one of the VC.
a few days later, before Frezza and Kleinbaumm prepare scurried back to the east, they came into the Thiel, founder of the Fund (raised Fund) office. Thiel is Facebook’s first external investors and entrepreneurs in a row, net worth up to $2 billion. But he doesn’t think silicon valley investment direction is normal, too much investment of software companies, the company to deal with scientific challenge is lack of investment. Frezza and Kleinbaumm companies use robots and nanotechnology treatment of HIV/AIDS, this is the very bold Thiel wants to help innovation has the potential to change the world of business.
they talked for half an hour later, Thiel advised Frezza and Kleinbaumm will return date for a week, so he would have time to persuade them to stay at the San Francisco bay area. “Their academic qualifications is enough, and they are not the kind of old school in the college, for a long time.” Then, the two people can stay in a motel, using a laundromat wi-fi. The Bohemian man wandering life, one is a few months, but it is also the most dramatic changes in their lives in a few months. Winter approaching, the Emerald Therapeutics (good) had ushered in the first series A investment fund, the founder of the. Got his PhD and then Frezza, meanwhile, Thiel have introduced a new reform.
Peter Thiel also clearly remember their understanding to the moment of life has its end. small Thiel was only 3 years old, live in an apartment in Cleveland. One day, he was lying on the floor of a piece of leather cushion, asked his father how cattle, the father told his cattle died. Small Thiel desperately want to have the thought of death out of the brain, he recalls. “I was really very, very, since then I never seem to get rid of the death of uneasy.”
in the 1980 s, Thiel was admitted to Stanford university. At that time, he is still obsessed with the “problem” of death, this is he the main topics of the research in genetic engineering. But he failed to patience. He said: “life science and computer science is different, it needs people for a long time to learn more, get more education, study on interesting in you really start to earn money by it or, before you take 10 to 15 years of professional training.” So he quickly got a degree in philosophy and a law degree, very forward-looking pioneered the PayPal. That year, he is 31 years old.
in 2008, the founder of the Thiel foundation for the first time to the company a lot of investment in the field of biological science and technology, investment object is genomics Halcyon Molecular. Investment a was founded three years and underachieving biotech company, this is very unusual. The financial crisis and the new federal regulations have been pushing biotechnology to the edge of the cliff. Biotechnology companies often take years or even decades to develop a new drug or treatment, and IT companies, IT can be in a few weeks will “minimum feasibility product” to the market. Obviously, IT companies can attract the attention of investors. Even special biotechnology venture capital investment company also have it both ways to turn to electronic health equipment, which consists of bytes, rather than the cells. National venture capital association, according to data from the investment in the biotechnology company declined from $2007 in 6 billion to $2009 in 3.9 billion (return to 2007 levels until 2014). But Thiel is sure that the biological technology is at the forefront of the revolution. Innovation such as 3-d printing, virtualization and automation technology is to reduce the cost of test, powerful algorithm can successfully insights of the human genome in a few hours, and no longer need for several weeks.
Halcyon Molecular company started by decoding the human genome to cure all diseases, cost less than $100 each time. The founders fund, however, soon found that investment in biotechnology is extremely ambitious bets, it using $10 million to build the company’s investment strategy. In 2012, a British competitors has claimed he has solved the Halcyon unresolved issues, so the Halcyon hastily closed the founder of the company (although after they found the solution from Britain is far from mature). Thiel realized that biotech companies started to solve the problem of all the medicine, this is a dangerous signal. He said: “if you want to avoid to make a mountain out of a molehill, you don’t come up to a lot of work.”
fortunately, founder of 2011 funds invested in another exploring low genetic testing company, and it only focus on genetic testing, it is San Francisco Counsyl company. Counsyl track those minority hereditary disorder has been confirmed by science institute, Theil invested $17 million to the company, he said: “Counsyl didn’t think people can cure all diseases, on the contrary, it says can change the human genome is limited.” The company in addition to genetic monitoring also provides consulting services, help the patients understand their test results. Counsyl’s CEO Ramji Srinivasan said: “many companies are you genomics research genomics, and our value is to meet customer demand. Customers don’t care about how your technology front, they are concerned about the technology how to solve their problems.”
Counsyl market value of more than $1 billion, now has 330 employees, with around 150 million customers signed a guarantee contract. Srinivasan, points out that the development of the company is very fast, and there is enough time for innovation, and this attracted deeply by the past due to lack of patience entrepreneurs who dropped out of the biotechnology industry. He said: “that people generally think of biology more trouble than computer science. Now, we have this tool, the company can hire scientists orderly, explicitly told them that they are engaged in work will be to the patient’s today, tomorrow and next week’s illness, rather than a decade later.”
founder funds to Ramji Srinivasan Counsyl genetic testing company invested millions of dollars, the company is now worth more than billion
biotech unicorn enterprise
Matthew Scholz is a typical computer scientists, are not interested in the traditional medical science. In 2008, he started a software company, specialized management operation of the urban logistics team. When he is ready to sell the company, he began to one none take compare to the network security technology and the similarities between the human immune system process. He said: “oh my god, I just suppose, because the body is essentially composed of information, so people is undoubtedly in the programming of cell. The naive idea was proved to be valuable.”
in 2009, Scholz has recruited many biologists and introduces Immusoft, the project can be on the white blood cells of type B cells to produce antibodies to “programming”, thus developed a “new drug”. Their philosophy is: no drug injection therapy to patients, but the patient’s cells, stimulate their treatment effect after restructuring, and then transplanted cells back into the patient. At that time, the correct gene cell therapy is not from the official approval. (after a few years to appear the Juno Therapeutics, Editas Medicine such as tens of millions of dollars of financing company.) The company’s founder get $2.3 million funds and other investment companies, now prepare for the first human trials. Once put into market, Immusoft this long DNA therapy will become rely on prescription drugs rival profitable pharmaceutical company. Scholz said: “but we all cured patients rely on drugs, pharmaceutical companies.”
the plight of biological science and technology into actual application and outlet
the founders fund partner Scott Nolan said: “the biological science more like engineering, it let us feel optimistic about their investment.” Besides Counsyl, Emerald and Immusoft and invested thus Genomics and Stemcentrx: the former is the pioneer DNA printing technology, which is studying a new treatment for solid tumor. But in the face of high-risk biotechnology, even the founders fund this kind of investment giant, also dare not rashly. Thiel thinks, if the pursuit of revolutionary rather than growth, “will always have the debate question.” Companies such as investors always shows that even a tiny bit of power investment, biological sciences can be applied before they need high investment. This leads to a majority of scientific research is still only in the university.