Strategy

The Physic team continues its strategy, implemented in prior funds, of investing in technology-driven companies that are part of the emerging sector dedicated to improving personal and planetary health. Our strategy is to identify science-driven, category-creating consumer-driven health and sustainable living solutions ahead of the consumer adoption curve and bring them to market in a way in which they are quickly and cost-efficiently validated and set on a path for rapid scale.

We consider the following criteria in making our investment decisions: the consumer, science and intellectual property, business model, industry sector, stage, geography, and value creation.

The Health Consumer

Physic Ventures examines each investment opportunity through the lens of consumer health benefits, with a focus on understanding how the consumer will use the product in their daily lives and how the product is best delivered for use. Efficacy is the primary criteria in our investment decisions. This allows Physic to avoid companies that seeks to solve market needs with technology solutions that do not fit the customer's requirements or lifestyle. Additionally, Physic will pay careful attention to the changing regulatory landscape to assess opportunities where new products can come to market in the most time and cost efficient manner possible.

Science and Intellectual Property

In all cases, Physic will only invest in opportunities that meet rigorous scientific and clinical standards of proof and meet professional perception standards for credibility. The Physic team often relies on western-trained physician/consumers to gauge the potential "acceptability" of various non-traditional solutions in a consumer-driven health environment. We avoid companies and technologies where the path to the end user is not well defined by management and where the benefits of the product are not clear. Physic avoids companies that have products or technologies that lack intellectual property and seek to differentiate only by marketing spend.

Business Models

Physic Ventures invests in business models which span the value chain of the consumer-driven health and sustainable living industry. Three types of business model characterize the Physic strategy:

  • Enabling Technologies:
    innovative technologies which empower consumers in the areas of food and nutrition, predictive and preventative medicine, beauty and well-being, hygiene, diagnostics, therapeutics, industrial biotechnology and materials science
  • Science-Based Branded Consumer Products:
    consumer-targeted products which incorporate enabling technologies
  • Innovative Channels:
    novel platforms and distribution networks which deliver products, services and information to consumers

Investing in business models spanning the industry value chain creates synergies across portfolio companies: platform technologies enable differentiated products, which are delivered through innovative channels, fulfilling unmet needs in consumer-driven health and sustainable living.

Industry Sectors

Following are examples of the types of companies that Physic Ventures may invest in:

Consumer-Driven Health

  • Healthy foods and snacks
  • Personal care
  • Weight loss and fitness
  • Vitality: salons and spas, tanning, beauty supplements, aromatherapy, gyms, vision and cosmetic dental care
  • Prescription and non-prescription personal diagnostics
  • Health advice given in conjunction with or complementary to prescription and non-prescription personal diagnostics
  • Innovative ways of connecting with consumers in relation to the above areas
  • Prescription and non-prescription pharmaceuticals
  • Nutraceuticals, cosmeceuticals and medicinal foods
  • Ex-vivo medical devices
  • Ex-vivo cosmetic and aesthetic devices
  • Wellness monitoring devices and services
  • Consumer food safety
  • Hygiene

Sustainable Living

  • Resource efficiency
  • Smart materials for personal and home use
  • Pollution reduction
  • Recycling technology
  • Water and water purification
  • Air and air purification
  • Distributed energy generation
  • Biodegradable materials
  • Energy storage
  • Clean manufacturing technology
  • Environmentally safe and biodegradable materials
  • Energy efficiency
  • Sustainable agriculture

Stage and Geography

Physic Ventures invests primarily in early to mid-stage ventures in North America and will be opportunistic with respect to other stages and geographies. We believe that it is critical to "be involved very early" in order to have a meaningful impact on the portfolio company's focus, strategy, culture, management team, industry relationships and overall business plan.

Value Creation

The Physic team has extensive experience in starting and working with emerging companies. After an investment is made, Physic investment professionals devote substantial time and experience towards building and growing portfolio companies. The Physic team assists management by providing business, scientific, financial, recruiting and deal-making advice. The depth of involvement in the company's activities is determined by the stage of the company at the time of initial investment.