Vc can play like this: watch the direction, he make a company to invest in

note: hunting cloud independent venture capital institutions to independent start-up funding support, take risks to earn profits return, is the business model, we often hear today to introduce the Third Rock is a bold innovation of venture capital institutions, independent create start-ups, investment, catalytic growth. The following to see its particular way. The following content from Chinese wealth.

soon set up time and the Foundation of Medicine is a cancer genome sequencing company, in January this year when it announced that Roche (Roche) will spend $1 billion buying its stake, Foundation of the company’s share price quickly doubled. In the Third Rock Ventures in Boston office, a sense of pride in the company of parents partner heart arises spontaneously.

Third Rock claiming to be a start-up investment of the company, but it is far more financing for new business and guidance. Founded in 2008, the Third Rock came up with the Foundation Medicine company’s idea. Third Rock company consists of 50 scientists and technical experts team for Foundation design services of the company. Third Rock has drawn up its business plan. After that, the Third Rock for the start-up capital injection of $25 million, selected a CEO created company, and eventually lead the company realize the initial public offering.

since it was founded in 2007, the Third Rock on its portfolio of almost all 36 firms have adopted this method, this method also succeeded in other companies, in the production of medicines for genetic disorders and cancer Agios company, and the use of gene therapy to treat rare diseases BlueBird Bio companies are among the most profitable in 2014 top four biotech stocks, up 300%.

Third “very good” Rock of the company’s strategy, Greylock Partners, the company’s venture capitalists Herman Bill (Bill Helman) said. “It’s thirty years I’ve ever seen, one of the few to reshape the wind investment one of the company of this model.”

if not played “blackjack” in Las Vegas, is impossible to have the company. Arranged the story sounds like a good joke: a financial executives and a biomedical engineer went into the casino… In this story, two people are going through their annual trip to gambling in 2006, the relationship between the two people in pushing the sale of Millennium Pharmaceuticals company produces in the process of the drug in the treatment of multiple myeloma Velcade is becoming more and more close. For the pharmaceutical industry, as well as the industry of earning a profit regardless of the patient’s bad reputation was sympathetic.

“the patient all deceived.” Kevin Starr (Kevin Starr) said. “We must do something.” The 52-year-old starr is a financial executives, he normally ride a motorcycle, like to wear skull ring shape. Sitting next to him was the 62 – year – old Mark Levin (Mark Levin), the biological chemical engineer before joining Millennium company, once successively in Lilly (Eli Lilly) and Genentech (Genentech). They soon to expand the scope of this discussion, the 59-year-old Robert Tepper (Robert Tepper) absorption in, before the Millennium as r&d director, Mr. Tepper was once the Massachusetts General Hospital, Massachusetts General Hospital) experts for the treatment of cancer patients.

the three men after leaving the company, to start looking for new ideas. They visit the academic research institutions, to find the starr, the so-called “shocking innovation”. But almost impossible to get rid of those ideas just stay on the fate of the academic journals. “We said, ‘why these content can only stay in academic level? ‘” he said.

money is one of the reasons. In the 1990 s, biological technology, hot. But by the turn of the century, marketization of drug costs reached the point of his tongue, the chance of success become smaller and smaller. The wind investment the company focus on the basic mature company, some even completely from biotechnology.

tepper, starr and he decided to start a can be starting from scratch, breeding, cultivating the business of the company. [company name inspired by a news report, this article describes The Third planet earth’s solar system change, rather than from The TV series with The same “crooked star hit The earth” (The Third Rock from The Sun).] Three people start (Harvard) from Harvard university and Massachusetts institute of technology (MIT) recruiting, Dr Dr Science and medicine. Third Rock partner says many venture capitalists scoff at the move. But after 10 weeks, the company raised the first sum of money, a total of $378 million. In order to ensure that all the focus on the patient, the company each quarter will organize a routine activities, inviting patients to tell their life is suffering from a rare disease or cancer. “We often cry bitterly, then take out, back in the office.” Starr said.

Foundation Medicine is one of the first idea of concern. Leaders of the concept is based on the Human Genome Project, the Massachusetts Institute of technology, Harvard university Institute of Broad, Broad Institute of MIT and Harvard) Eric rand (Lander), founder of the research. They want to know, whether can sell a diagnostic tests, using DNA sequence is used to help determine which cancer drugs to treat it that can most effectively eliminate specific tumor patients?

Third Rock company invited rand and Alexis CombinatoRx company’s then CEO Boris (Alexis Borisy) to attend the weekly brainstorming session, CombinatoRx companies use software to select cancer treatment drug, to treat some tumor cells. They discussed how to expand the size of the test, so that it can afford.

“it is a difficult job.” Before joining Third Rock Boris said of the company. At that time, the cost of genetic sequencing is tens of thousands of dollars. They have to keep the price down to $2000 – and they must convince the insurance company underwriting. Third Rock company and the Broad Institute’s team in one and a half years and gene sequence expert, meet company and the diagnosis and treatment. They talked with pharmaceutical company, meet with cancer treatment doctors and insurance companies, and government regulatory agencies. They set up a model for DNA testing. “This is the wisdom of the collective.” Boris said.

when Foundation company was finally was founded in 2010, Third Rock company invested $25 million for it. Later, Google Ventures and Kleiner Perkins company also join them. Final investment of $40 million has gone far beyond the first round of biotechnology financing is usually the size of $5 million to $8 million. Their goal is: let the CEO to focus on the development of the company, rather than the next to investors.

in 2012, Boris decision, it’s time to let go let the Foundation company fly. He hired a CEO, in the next two years, the company cooperation with cancer center and pharmaceutical company, has launched two cancer based on DNA testing, and from Bill Gates (Bill Gates) hands won a $56 million investment. In September 2013, the Foundation public listed companies.

Third Rock company would not give it in return. But according to one of its investors the Calpers (Calpers) website, it’s investment in 2007 created the internal rate of return is 25.7%. According to the mainstream investment tracking firm Preqin, the result is enough to make it into the performance ranking before 1/4.

at the same time, the IPO market, coupled with the U.S. food and drug administration (FDA) efforts to speed up the breakthrough drug approval, the wind investment the company interested in biotechnology start-ups. For starr, his goal is to contact more cancer patients. “For us, these are not investment.” He said. “It just shows that our children have grown into a youth.”

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