Posts Tagged ‘Aberdare Ventures’



Gerbsman Partners (www.gerbsmanpartners.com) has been retained by Portaero, Inc. to solicit interest for the acquisition of all, or substantially all, Portaero, Inc.’s (“Portaero”) assets.

Headquartered in Cupertino, California, Portaero is a leader in developing devices for the treatment of homogeneous emphysema.


The information in this memorandum does not constitute the whole or any part of an offer or a contract.

The information contained in this memorandum relating to the Portaero’s Assets has been supplied by Portaero. It has not been independently investigated or verified by Gerbsman Partners or their respective agents.

Potential purchasers should not rely on any information contained in this memorandum or provided by Gerbsman Partners (or their respective staff, agents, and attorneys) in connection herewith, whether transmitted orally or in writing as a statement, opinion, or representation of fact. Interested parties should satisfy themselves through independent investigations as they or their legal and financial advisors see fit.

Gerbsman Partners, and their respective staff, agents, and attorneys, (i) disclaim any and all implied warranties concerning the truth, accuracy, and completeness of any information provided in connection herewith and (ii) do not accept liability for the information, including that contained in this memorandum, whether that liability arises by reasons of Portaero’s or Gerbsman Partners’ negligence or otherwise.

Any sale of the Portaero Assets will be made on an “as-is,” “where-is,” and “with all faults” basis, without any warranties, representations, or guarantees, either express or implied, of any kind, nature, or type whatsoever from, or on behalf of Portaero and Gerbsman Partners. Without limiting the generality of the foregoing, Portaero and Gerbsman Partners and their respective staff, agents, and attorneys,  hereby expressly disclaim any and all implied warranties concerning the condition of the Portaero Assets and any portions thereof, including, but not limited to, environmental conditions, compliance with any government regulations or requirements, the implied warranties of habitability, merchantability, or fitness for a particular purpose.

This memorandum contains confidential information and is not to be supplied to any person without Gerbsman Partners’ prior consent. This memorandum and the information contained herein are subject to the non-disclosure agreement attached hereto as Exhibit A.

Portaero, Inc. Company Profile

Founded in 2007, Portaero is a private, California-based, clinical stage medical device company. Over the past 6 years, Portaero has raised approximately $20mm in equity and debt from the leading venture capital firms Versant, Aberdare, and Novartis Ventures.

Portaero is a leader in developing innovative, therapeutic devices to treat advanced, homogeneous emphysema. It is the only therapy currently in patients whose primary indication for the FDA pivotal trial will be homogeneous emphysema.

Portaero’s therapy targets patients whose lungs are hyperinflated due to emphysematous destruction and dynamic airway collapse. The Portaero Access Tube System creates a transthoracic pneumostoma which is subsequently managed by the patient with the Portaero Daily Disposable Tube.  When patent, the pneumostoma reduces the amount of trapped gas and the pressure in the diffusely destroyed lung, thus restoring the productivity of the native airways, improving overall lung function, and increasing patient quality of life.  Early experience also suggests pneumostoma patients experience a lower rate of exacerbations.  Exacerbations make these patients among the most expensive in the health care system.

Portaero believes its assets are attractive for a number of reasons:

·     Portaero is the only device in development which has generated data in homogeneous patients that warrants inclusion of those patients in a US PMA trial.

·     6+ years of clinical experience supports the safety and the efficacy of the therapy.

·     Current patients continue to manage their pneumostomas from 1+ years to 6.5 years.

·     Portaero Intellectual Property, comprising 25 issued US patents, 15 pending US patent applications, 10 issued international patents and 10 international pending patent applications, is the earliest and most comprehensive portfolio for    transthoracic bypass. Some of Portaero patents also apply to using the Portaero port for improving drug delivery to the lung.

·     The Portaero Access Tube System is placed by a thoracic surgeon via a mini-thoracotomy.  The 45 minute procedure requires no special skills and has been completed under both local and general anesthesia.

·     The Portaero Daily Disposable Tube has successfully been managed by a wide variety of patients.

·     The Portaero Reopening Device is designed to be used by an Interventional Bronchoscopist or surgeon.  It should be a simple, safe, outpatient procedure that can be quickly done at the end of the bronch list.

·     The Portaero therapy is very accessible to health care capabilities worldwide.

·     The Portaero system fits well with the direction of reimbursement systems that prefer to pay for desired outcomes.  The bulk of the economics is in the disposable which is only used if the patient is receiving benefit.

·     A leading clinician experienced with Portaero and other emphysema therapies believes Portaero patients have a lower exacerbation rate than untreated patients.

·     The Portaero therapy is reversible.  No patient has been worse off for having tried the Portaero treatment.

·     Preliminary BODE data suggest the potential to increase life expectancy with the Portaero therapy.

·     In the long term, the patents allow for development of a percutaneous procedure for interventionalists.

Impact of Technology on the Market

Patients with homogeneous emphysema represent a large, growing market with an unmet clinical need. Accessing Portaero’s intellectual property is critical for any successful endeavor into this very attractive market. Portaero’s therapy is complimentary to other therapies addressing heterogeneous disease (e.g., valves, coils, steam, glue) and could be sold by the same sales force.

Intellectual Property Summary

Portaero has a comprehensive intellectual property portfolio consisting of 35 issued patents: 25 are issued for the US and 10 are issued for International.  Portaero has 25 pending applications: 15 pending for the U.S. and 10 pending for International.  Description of the portfolio can be found in the Appendix B.  The portfolio represents a broad array of strategic variables including:

Methods and devices used by patient to maintain and protect the pneumostoma
Methods and devices for pneumostomy procedures for creating a pneumostoma
Methods and devices for assessment, maintenance, and treatment of a pneumostoma
Portaero’s Assets

Portaero has developed a portfolio of assets critical to the treatment of emphysema via a pneumostoma. These assets fall into a variety of categories, including:

·     Patents and Patent Applications
·     Patient Data Set for Treating Homogeneous Emphysema from 2 different non-randomized clinical studies
·     Design and manufacturing documentation for surgical and patient care products
The assets of Portaero will be sold in whole or in part (collectively, the “Portaero Assets”). The sale of these assets is being conducted with the cooperation of Portaero. Portaero will be available to assist purchasers with due diligence and a prompt, efficient transition to new ownership. Notwithstanding the foregoing, Portaero should not be contacted directly without the prior consent of Gerbsman Partners.

Portaero, Inc. Board of Directors

·       Sami Hamade: Aberdare Ventures – San Francisco, CA

·       Ross Jaffe:  Versant Ventures – Menlo Park, CA

·       Dave Plough: Portaero President & CEO – Cupertino, CA

·       Steve Weinstein: Novartis Ventures – Cambridge, MA

The Bidding Process for Interested Buyers

Interested and qualified parties will be expected to sign a Confidential Disclosure Agreement (attached hereto as Appendix A) to have access to key members of management and intellectual capital teams and the due diligence “war room” documentation (“Due Diligence Access”). Each interested party, as a consequence of the Due Diligence Access granted to it, shall be deemed to acknowledge and represent (i) that it is bound by the bidding procedures described herein; (ii) that it has had an opportunity to inspect and examine the Portaero, Inc. assets and to review all pertinent documents and information with respect thereto; (iii) that it is not relying upon any written or oral statements, representations, or warranties of Gerbsman Partners, or their respective staff, agents, or attorneys; and (iv) all such documents and reports have been provided solely for the convenience of the interested party, and Gerbsman Partners (and their respective staff, agents, or attorneys) do not make any representations as to the accuracy or completeness of the same.

Following an initial round of due diligence, interested parties will be invited to participate with a sealed bid, for the acquisition of the Portaero, Inc. assets. Each sealed bid must be submitted so that it is received by Gerbsman Partners no later than Tuesday, July 16, 2013 at 3:00pm Pacific Daylight Time (the “Bid Deadline”) at Portaero, Inc.’s office, located at 21631 Stevens Creek Blvd., Cupertino, CA 95014.  Please also email steve@gerbsmanpartners.com with any bid.

Any person or other entity making a bid must be prepared to provide independent confirmation that they possess the financial resources to complete the purchase.  All bids must be accompanied by a refundable deposit in the amount of $100,000 (payable to Portaero, Inc.).  The deposit should be wired to Portaero, Inc.’s attorneys (information will be provided).  The winning bidder will be notified within 3 business days of the Bid Deadline. The deposit will be held in trust by Portaero’s counsel.  Unsuccessful bidders will have their deposit returned to them within 3 business days of notification that they are an unsuccessful bidder.

Portaero, Inc. reserves the right to, in its sole discretion, accept or reject any bid, or withdraw any or all assets from sale.  Interested parties should understand that it is expected that the highest and best bid submitted will be chosen as the winning bidder and bidders may not have the opportunity to improve their bids after submission.

Portaero Inc. will require the successful bidder to close within a 7 day period. Any or all of the assets of Portaero, Inc. will be sold on an “as is, where is” basis, with no representation or warranties whatsoever.

All sales, transfer, and recording taxes, stamp taxes, or similar taxes, if any, relating to the sale of the Portaero, Inc. assets shall be the sole responsibility of the successful bidder and shall be paid to Portaero, Inc. at the closing of each transaction.

For additional information, please see below and/or contact:

Steven R. Gerbsman

Gerbsman Partners


Kenneth Hardesty

Gerbsman Partners


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Article from GigaOm.

Between growing interest in fitness tracking devices, mobile health apps and software for adapting to the changing business of health care, digital health had a banner year in 2012.

According to a year-end funding report from health tech accelerator Rock Health, investors poured $1.4 billion into digital health companies last year, which is up 45 percent from their investment total of $968 million in 2011.  The report, released Monday by the San Francisco-based non-profit, also indicated a 56 percent increase in the number of deals closed in 2012.

As we’ve reported previously, these are interesting times in health care funding as investors rethink their support of biotech and traditional life sciences firms but back digital health companies that leverage mobile devices, cloud computing, open data, sensors and other emerging technology. Indeed, citing research from PricewaterhouseCoopers, Rock Health’s report said that investment in biotech and medical devices declined 4 percent and 16 percent respectively in 2012.

In total, the report said 134 digital health companies each raised more than $2 million in the last year, with one-third of all deals falling into four categories: healthcare purchasing tools for consumers, personal health tracking, Electronic Medical records and hospital administration.

While 179 firms and organizations invested in digital health companies, most only took part in a single deal, Rock Health said, with just eight investors making three or more investments in 2012. Qualcomm Ventures led the list of the most active investors, followed by Aberdare Ventures, Merck Global Health Innovation Fund and NEA.

The Bay Area and Boston lead the way in the number and value of  digital health deals, according to the report. But New York could be coming on strong given the launch of several health startup incubators including Blueprint HealthStartup Health and the New York Digital Health Accelerator in the Big Apple last year.

Read more here.

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Here is a interesting article from WSJ Online.

“Twitter Inc.’s $100 million funding round drew considerable attention for its massive size, but it’s not the largest venture deal so far this year. That round actually tied for the fourth largest, according to data compiled from Dow Jones VentureSource.

Here’s a list of the Top 10 venture capital rounds through the third quarter. The deals are impressive considering the cloud hanging over the venture industry. Besides Twitter and another dot-commer, Facebook Inc., these companies range from massive clean-technology projects and health-care plays to wireless equipment makers and, in one case, a waste-collection service.

#1 Solyndra Inc., Fremont, Calif. – $286 million

The solar panel maker is on the federal government’s hot-list, receiving a $535 million loan guarantee in September to build a second manufacturing plant and create hundreds of jobs. That loan encouraged venture firms to invest at least another $198 million in Solyndra. (The company announced that amount in September though a spokesman told VentureWire the round’s total was even higher.) Argonaut Private Equity, an investment vehicle for Oklahoma billionaire George Kaiser, led the round. Others participating in the round weren’t disclosed, although Solyndra’s investors include CMEA Capital, Redpoint Ventures, RockPort Capital Partners, U.S. Venture Partners and Virgin Green Fund, which together have invested more than $600 million. Solyndra plans to finish building its plant in Fremont by the end of next year and ship its first product in early 2011.

#2 Clovis Oncology Inc., Boulder, Colo. – $146 million

In May, Domain Associates, New Enterprise Associates and others bet $146 million that former executives of cancer-drug company Pharmion Corp., which sold for $2.9 billion last year, will repeat that success with newly formed Clovis Oncology. Also participating were Pharmion investors Aberdare Ventures, Abingworth Management, ProQuest Investments and Versant Ventures, and newcomer Frazier Healthcare Ventures. Like Pharmion – which raised $145 million in venture capital and convertible debt before going public in 2003 – Clovis will acquire cancer therapies, develop them through to regulatory approval in the U.S. and Europe, and market them.

#3 Small Bone Innovations Inc., New York – $108 million

The orthopedic device company, founded in 2004, has developed a portfolio of products for thumb, hand, wrist, elbow, foot and ankle surgeries. The STAR Ankle total joint replacement system, one of Small Bone’s flagship products, received Food and Drug Administration clearance in May. The $108 million Series D round, which closed in April, included new investors The Family Office of Bahrain, Goldman Sachs & Co., Khazanah Nasional Brhd. and Malaysian Technology Development Corp. and existing investors 3i Group, Axiom Venture Partners, NGN Capital, TGap Ventures and Trevi Health Ventures. Executives told VentureWire they expect Small Bone to reach profitability in 12 months, and unlike many medical device companies which become acquisition targets, could grow into a full-fledged company in its own right.

#4 (Tied) A123 Systems Inc., Watertown, Mass. – $100 million

The electric-car battery maker’s initial public offering last month captured investors’ imagination – and wallets – with a vision of a future where power is stored intelligently and deployed efficiently in a world of lower carbon emission. Before the IPO, A123 Systems gathered $100 million in Series F funding in June from investors Gururaj Deshpande, General Electric Co., North Bridge Venture Partners and Qualcomm Inc. A123 also received a $249.1 million grant from the U.S. Department of Energy grant, the second-biggest awarded as part of a $2.4 billion program to start up a domestic battery industry. The company, which has a deal to supply Chrysler Group LLC with batteries for planned electric vehicles and hybrids, is said to be in the late stages of negotiations for another DOE loan worth as much as $235 million.

#4. (Tied) Facebook Inc., Palo Alto, Calif. – $100 million

Facebook recently reached an important milestone for an Internet company, becoming cash-flow positive as it also grabbed its 300 millionth member. Will an IPO be coming soon? Executives won’t say, but the company’s investors are counting on a spectacular exit at some point given how much money they’ve invested over the years. One of the newest investors is Digital Sky Technologies, a Russian Internet investor that put $100 million into Facebook in July while also paying another $100 million to buy out shares of any selling employees.

#4 (Tied) Open Range Communications Inc., Greenwood Village, Colo. – $100 million

One Equity Partners committed $100 million to Open Range at the start of the year to help it roll out wireless broadband and Internet services in rural America by the end of the year. The deal followed a $267 million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program. Founded in 2004, Greenwood Village, Colo.-based Open Range hopes to reach more than six million Americans in 546 underserved and rural communities across the U.S. lacking access to traditional DSL or cable broadband service providers. Open Range plans to use WiMAX technology to enable access to its planned wireless service with a simple plug-in device.

#4 (Tied) Twitter Inc., San Francisco – $100 million

At a $1 billion valuation, Twitter’s $100 million fourth round proved the Web messaging company is here to stay, at least longer than some thought. The funding came from some unlikely sources, including T. Rowe Price Group, better known for its retirement funds than venture capital investing, Morgan Stanley, which invested from its asset management business, and Insight Venture Partners, a growth-equity investor that doesn’t typically put money in pre-revenue companies. Other investors in Twitter include Benchmark Capital, Institutional Venture Partners, Spark Capital and Union Square Ventures, which didn’t reinvest in the latest round reportedly because the deal priced the firm out. Now the pressure will be on for Twitter to live up to the hype.”

Read the full article here.

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