This Biotech Startup Is Crowdfunding its R&D After Turning Down a $1M Investment

This Biotech Startup Is Crowdfunding its R&D After Turning Down a $1M Investment
© Remedy Plan


In this guest post, Allison Crimmins (Director of Strategy at Remedy Plan) tells us why her biotech startup decided to raise $100,000 via crowdfunding instead of taking the $1 million in traditional risk capital that was on the table. The funds will help to finance its search for drug candidates that block cancer stem cells’ ability to multiply, thereby preventing metastasis, drug resistance, and the recurrence of tumors. You can support Remedy Plan’s research HERE.


It’s not easy turning down a million dollars. Especially when there isn’t a line of investors beating down your door. And saying no to a big investment in favor of running a crowdfunding campaign may sound crazy, but I think we made the right decision.

I’m part of a company called Remedy Plan. We’re a startup biotech company with an innovative technology that allows us to develop drugs that stop the spread of cancer. Our crowdfunding campaign just launched on Monday at, and made it past 10% of our goal in the first day. We may not have originally planned on going the route of crowdfunding, but it now plays a very important role in our overall business strategy.

Back in 2013, the co-founders of the company, two former classmates at Berkeley, recognized that the work they were doing on embryonic stem cell biology had implications for measuring similar properties in cancer cells… and they dropped everything to focus on this big idea. Greg Crimmins, who invented a promising new way to treat cancer with immunotherapy (patent licensed by Aduro Biotech), immediately knew he had to switch career streams and build a company that would conduct these new experiments. Remedy Plan was born.

“The scope of it blew my mind,” recalls Greg, “I couldn’t imagine a more important series of experiments that needed to be done.” The series of experiments he had in mind could lead to the development of new cancer drugs that target the spreading properties in cancer cells. Rather than attacking both cancer cells and healthy cells, like traditional therapies do, these drugs will be used in Cancer Containment Therapy. Because the spreading properties they identified are shared by many types of cancers but not by healthy mature cells, Cancer Containment Therapy would be applicable to multiple types of cancer without being toxic, including cancers of the breast, lung, liver, prostate, skin, and brain.

Just one problem: that well known funding gap in the drug development process, dubbed the “Valley of Death”, that lies between preliminary tests on a big idea and identifying drug candidates. Or as NIH Director Francis Collins puts it: “where great ideas, unfortunately, go to die”.

stages of drug development

© Remedy Plan, used with permission.

Greg and his partner Ron Parchem pitched their companies to several San Francisco area investors, and at first were met with some good luck. With the backing of two respected National Academy scientists on their advisory board, Dr. Frank McCormick at UCSF and Dr. Dan Portnoy of UC Berkeley, they were offered several investments that totaled over $1M. But because the company was in such an early stage, the two founders were unable to negotiate acceptable investment terms. Unwilling to turn over the scientific direction of the company, they turned down the offers.

Realizing that they weren’t going to get the kind of terms they desired, the company took a serious turn: towards crowdfunding. While strengthening the core business (IP, business plan, talking to industry partners, etc) and finalizing a patent submission, the Remedy Plan team also spent the next year working through branding exercises, ironing out language and tone, developing a website, a communications strategy, and the foundations of a crowdfunding campaign.

There are a few reasons for refocusing on crowdfunding. Primarily, the money raised over the campaign, along with some smaller private investments, will allow the company to rent lab space, purchase equipment, and run an initial drug screen. Armed with the proof-of-concept results of this initial screen—plus a cadre of supporters who believed in the idea enough to chip in their own money to see the research happen— Remedy Plan will be in a much better position to negotiate the terms of future investments needed to develop and optimize drug candidates prior to clinical trials. Crowdfunding is the bit of momentum needed to take the first leap across the “Valley of Death”.

But I also believe that there is a secondary benefit to crowdfunding scientific research. Crowdfunding works to tap into people’s inherent curiosity about the world and allows them to be a part of the discovery process. At Remedy Plan, we know that relying on the generosity of people comes not just with gratitude, but with the responsibility to be upfront and honest about our process. Crowdfunding campaigns like ours enable people to get directly involved in funding research, follow the progress of specific researchers, and share in their successes. It works to demystify science and make it accessible to a wider audience.

Our campaign just launched, so it’s still too early to tell if we’ll hit our $100K goal. Regardless, I’m convinced that launching a crowdfunding campaign has strengthened our company and that the mechanism is a viable, beneficial, and exciting tool that will only continue to become more prevalent in today’s biotech startup world.




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Funded Science Roundup #3: Investing in Biotech

Funded Science Roundup #3: Investing in Biotech
Credit: © Robert Plotz - Fotolia

Investing in Biotech

  • Trends Show Crowdfunding To Surpass VC In 2016 – Crowdfunding industry estimated to grow to $34 billion in 2015, as compared to an average of $30 billion per year in venture capital investment and an average of $20 billion annually in angel investment. 2015 estimate for equity crowdfunding is $2.5 billion invested worldwide. Early days yet, but crowdfunding looks set to play a major role in fundraising for new ventures going forward.

  • Top 15 Corporate Venture Funds: – Lists the 15 largest venture funds run by large pharmaceutical companies. The largest is the Novartis Venture Fund, with over $1 billion in committed capital. Big Pharma has increasingly been outsourcing its R&D to biotech startups and academia, typically acquiring the technology once its a fair way down the development pipeline (often after the Phase II trial stage). These venture funds form a key part of that strategy.
  • First Round 10 Year Project – First Round Capital analyzed the data on the 300 companies and 600 founders it has invested in since 2005, and lists the 10 key findings.

Recent Deals in Biotech

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List of Healthcare Startups using Equity Crowdfunding

List of Healthcare Startups using Equity Crowdfunding
Source: © Africa Studio -

In a previous post, I compiled a list of healthcare-specific crowdfunding portals that included both donation-based and equity-based models.  The number of campaigns to fund health research is growing rapidly on donation-based portals, particularly in the emerging set of cancer research-specific websites.

Equity-based crowdfunding campaigns to finance medical startups are more difficult to track.  Many equity-based portals do not list their projects publicly, in part due to varying regulatory requirements that restrict soliciting the public for securities investments or limit participation to accredited investors.  Unsurprisingly, then, the following list of health-related companies that have attempted to use equity-based crowdfunding to raise capital carries less information than the drug development campaigns list.  If you know of any other campaigns, please let me know.

Company Pitch Platform Status
Ambiotis Ambiotis is the first Contract Research Organisation (CRO) working on the active resolution of the inflammatory process and making the proof of concept of innovative compounds. WiSEED Ended
Antabio ANTABIO is a France-based biopharmaceutical company dedicated to the discovery and development of first-in-class molecule compounds to treat severe hospital- and community-acquired infections caused by multi- and pan-drug resistant bacterial pathogens. WiSEED Ended
Aroma Therapeutics Aroma Therapeutics est une Biotech spécialisée dans les produits naturels pour la prévention des maladies du CNS (Système Nerveux Central) type Alzheimer. WiSEED Pre-Campaign
BioEnergetics This professor-led, high-growth and revenue-producing CRO provides services to big pharma. Their niche is in toxicity testing at an early stage of drug development cycle using proprietary technology significantly reducing drug development costs. BlazeFund Pre-Campaign
Caviskills CaviSkills (Lyon, France) aims to increase chemotherapeutic penetration into target cells with devices based on their patented ultrasound technology. WiSEED Pre-Campaign
Cell Guidance Systems Cell Guidance Systems make research tools to aid stem cell scientists. Stem cells are being developed to provide treatments for diseases inc. stroke, coronary disease, diabetes and Parkinson’s. Crowdcube Ended
Destiny Pharma Limited Destiny Pharma is an established, UK based, private pharmaceutical company which develops novel drugs to prevent and treat bacterial infections. Crowdcube Active
Intelligencia Nous proposons aux patients des établissements de santé et aux résidents des maisons de retraites d’accéder depuis notre terminal tactile mobile, MEDICALVISION, à des services de visiophonie, Internet, informations, éducations thérapeutiques. WiSEED Ended
Log Six Systems Ltd Log Six Ltd (LSL) has invented patentable ultrasonic based technology which could revolutionize hygiene in the healthcare and food industry with its range of products. SquareKnot N/A
Neuronax NEURONAX is a biotechnological company developing first-in-class candidate-drugs supporting neural repair in order to treat traumatic or severe degenerative disorders of the central nervous system (CNS) and to contribute to restore neurological function, and thus to improve the quality of life of patients. WiSEED Ended
Perle Bioscience The bioscience company is engaged in the development of new pharmaceutical compositions – and methods for reversing Type 1 and 2 Diabetes. The innovative company, founded by an expert in the field of diabletes with prior experience and success, is setting the stage for usage of a new proprietary peptide therapy for generation of new insulin producing cells – a breakthrough with the potential to benefit millions of people BlazeFund Active
SD-INNOVATION SD Innovation fabrique et vend deux matériels d’analyse automatisés du sang (Agrégomètre et Osmocells) pour les hôpitaux, cliniques ou laboratoires. WiSEED Pre-Campaign
Urodelia Urodelia développe des produits pour combattre le cancer en mobilisant et organisant les défenses de l’organisme WiSEED Ended
ZoVolt Ltd ZoVolt Ltd is producing a miniature wireless ECG/Heart Rate sensor, able to send data in real time to mobile devices. Crowdcube Active


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h/t to Patrick McCarthy for pointing to several of these campaigns.

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