Investment Focus
Strategy
TriStar forms and invests in companies at the pre-seed/seed stage in the area we broadly define as “Healthcare Innovation:” biotech, pharmaceuticals, personalized medicine, medical devices, healthcare IT and healthcare services. These areas represent the specific expertise of the TriStar principals.
Initial investments may range from $100,000 to $1,000,000, with a target total investment of between $1,000,000 to $2,000,000 over the life of the investment.
TriStar's strategy has a specific focus on technologies and companies emerging from universities and research institutions. The TriStar strategy is to tap into the research base at institutions in Tennessee and beyond in order to start new companies or invest in existing companies located in Tennessee. We will also consider investments in existing companies that do not have a direct tie to a research institution, but otherwise meet our investment criteria.
Opportunity
In 2007 alone, there was approximately $50 billion in total research expenditures at U.S. universities, hospitals and research institutions. These same institutions created 555 new startups in 2007, yet this is only a fraction of what is possible. There is a tremendous opportunity to create and invest in new companies based on the results of this $50 billion in research because there is an acute shortage of capital available for financing companies at this nascent stage.
Criteria
Sectors
- Life Sciences
- Biotech
- Pharmaceuticals
- Personalized Medicine
- Medical Devices
- Healthcare IT
General Investment Considerations
- Protected (or protectable) intellectual property position.
- Significant addressable market size.
- Sound science with engaged inventor(s).
- Involvement of individuals with domain expertise (management, advisors, Board).
- Validated unmet market need.
TNInvestco Program
- In order to invest capital into a company under the TNInvestco program, a business must meet the following requirements:
- The business must be independently owned and operated.
- The business must be headquartered in Tennessee; its principal business operations must be located in Tennessee, and at least 60% of its employees must be located in Tennessee.
- The business must not be principally engaged in professional accounting, medical, or legal services; banking or lending; real estate development; insurance; oil and gas exploration; or direct gambling services.
- The business must employ no more than 100 employees.
- Once a business qualifies to receive investment funds, it may continue receiving funds so long as it continues to be headquartered and principally operated in Tennessee with at least 60% of its employees located in Tennessee.
