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Custom Investment Case Study: How Philanthropic Capital Uniquely Bridged Funding Gap for Early-Stage Bioscience Company

Custom Investment Breakdown

Catalytic Impact Foundation (CIF) uses philanthropic capital to help address the funding gap for transformative and impactful early-stage health and life science companies. With The ImpactAssets Donor Advised Fund, CIF had the opportunity to further their mission of addressing high unmet medical needs through an investment in Terran Biosciences. If this investment generates positive returns, they will be recycled back into the donor advised fund to increase the philanthropic capital available for future investments. It is a model that has the potential be sustainable and regenerative.

The Challenge
Many early-stage bioscience companies today are facing the innovation “valley of death”. Traditional venture capital has moved towards backing companies at less risky, later stages of commercialization, and this among other factors has left many early-stage bioscience companies without the critically needed access to capital. As a result, potential treatments for devastating conditions struggle to progress along the path to commercialization where they can eventually benefit patients in need.

The Opportunity
Catalytic Impact Foundation (CIF) is a nonprofit that aggregates donors’ charitable dollars to invest in innovative life science companies, specifically those focusing on high unmet medical needs — such as rare pediatric genetic diseases and brain health — two areas that are particularly underfunded. CIF saw Terran Biosciences as a potential game changer in brain health, and seized the opportunity to provide catalytic capital that would help propel Terran forward.

The Solution
CIF recommended a $100K equity investment into Terran from their ImpactAssets Donor Advised Fund account, The CIF Catalytic Impact Solutions Fund. This, in turn, helped attract more investors. Terran’s current funding round will allow them to move their diagnostic imaging technology through the FDA approval process, and help advance their drug candidate for schizophrenia.

Given that this investment used philanthropic dollars, it is inherently more patient and risk tolerant. Additionally, since returns go back into The CIF Catalytic Impact Solutions Fund to be used for future impact investments, it has the potential to be a truly sustainable form of philanthropy.

“ImpactAssets has been terrific at facilitating our ability to do these catalytic investments in private companies, where we can use charitable funds to help accelerate impactful innovation. We believe that, along with our donors, we are helping to change the world in some small way, by helping patients who are suffering from conditions and diseases where treatment options are limited to non-existent.”

— Rachel Butler, President, Catalytic Impact Foundation

About the Investee

There have been very few breakthroughs for patients with psychiatric and neurological disorders like schizophrenia and Parkinson’s disease during the last decade. Terran Biosciences is trying to change this by taking a portfolio approach towards developing technologies and therapeutics designed to improve the lives of patients with these diseases.

Impact Goals:
Changing the diagnostic and treatment paradigm for multiple neuropsychiatric diseases.

UN Sustainable Development Goal

“Catalytic Impact Foundation’s philanthropic investment means a lot to us at Terran. We believe that what we are building could truly revolutionize the space and will be potentially transformative for our patients. CIF’s endorsement helps us get closer to these goals, and will help attract other patient-focused investors to this cause.”

— Sam Clark, MD, PhD, CEO, Terran Biosciences

Make An Impact

Impact investments are investments made into organizations and funds that generate measurable social and environmental impact as well as financial returns.

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