Transaction Case Studies

Garuda Therapeutics: NewCo strategy and financing led to oversubscribed $72M Series A

Situation Assessment

  • Company was a pre-seed, stem-cell platform that is first to differentiate iPSCs into engraftable HSCs, enabling off-the-shelf, durable blood stem cell therapies
  • Locust Walk partnered with the company to develop a comprehensive business plan and achieve a small seed financing and a target $60M fundraise

Key Activities

  • Worked closely with company leadership and SAB to develop a full business plan, including clinical development strategy and selection of lead and follow-on indications, development of follow-on platform applications, partnering strategy, and use of proceeds plan and budget
  • Leveraged our relationships to identify accredited seed investors and close $1M Seed financing
  • Prepared Investor deck and helped position story in a way that would resonate with investors
  • Helped company prepare a detailed use of proceeds plan, budget, and roadmap for the financing
  • Constructed detailed financial models and valuation guidance to support investor conversations 
  • Facilitated and managed the CDA process, as well as organized the VDR for the company 
  • Conducted targeted outreach and organized meetings with both investors and strategic partners 
  • Shepherded company through DD process: captured and organized investor feedback, worked with company to respond to investor diligence questions, concerns, and asks
  • Provided extensive guidance on deal dynamics and worked in collaboration with company and lead investors to drive financing to close

Successful Outcome

  • Garuda raised $1M in Seed funding including an investment by Locust Walk
  • Garuda successfully raised an oversubscribed $72M Series A led by Aisling Capital, Northpond Ventures, and Orbimed with a syndicate of leading life sciences investors, the terms for which were considerably more favorable than offers received prior to Locust Walk’s involvement

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