Nordic Life Science 1
60 between having a globe and a map when it comes
to being able to design drug targets, study disease mechanisms, and understand modalities. We’re seeing many unique approaches in the world of molecular tools.” From science to investing in science Mala Valroy took an unconventional career route, she describes. She was born in India to parents who were academics, and they moved frequently for her parents’ teaching positions. They lived in Stuttgart, Germany for several years, and in Utah in the US before returning to India where Valroy completed high school and attended college. Not long after entering high school, she became interested in life sciences. “I was fascinated that we had the ability to splice DNA; the fact that we could make differences in diseases by doing that really, really lit up my brain,” Valroy says. But business and investing lit up her brain too. She earned an M.S. in general management from the Stockholm School of Economics, as well as an M.S. in biochemistry from Dartmouth College in the US. She began to work on a doctorate in biotechnology, feeling it was her job to maintain the family tradition of earning a Ph.D. But while she liked the idea of her work having an impact on people’s lives years down the road, Valroy did not feel at home in a lab. “I started thinking I work better with shorter feedback loops,” she says. “I love science, but I love investing in science even more. I have more to contribute when science is ready to leave the lab.” And start-up businesses pique her interest the most. “I’ve always been more on the entrepreneurial side,” she says. One of the best parts of her job, Valroy says, is the opportunity to connect with ambitious, creative people. “I love meeting founders with the ability and audacity to solve complex problems in health, climate, and food,” she explains. “I'm seeing interdisciplinary teams emerge and really love supporting their journey to combine physics, chemistry, and biology to build products. My job involves constantly meeting capable people who are brave enough to try and find solutions – it makes you optimistic no matter how bad the headlines get. I love building relationships, landing a deal, and continuing to support them through board work.” One of the main challenges is recognizing when changes must be made to the original plans for a company – including who will run it. “I have a lot of respect and admiration for founders who are able to step down as CEO because the company is not a job for them,” Valroy says. “It’s deeply personal for them. It’s the result of late nights, long weekends, missed family events, and hard work.” And sometimes you have to decide when enough is enough. “It’s not always crystal clear whether one last push will see us through or just prolong the inevitable,” she says. NLS 5 PIECES OF ADVICE FROM MALA VALROY FOR SMALL AND MEDIUM-SIZED NORDIC COMPANIES SEEKING TO RAISE FUNDS 1. Don’t raise capital when cash runs out. Plan to raise capital when you have reached milestones to motivate the uptick in your valuation. If the two don't line up, consider alternatives like soft funding or bridge rounds to steer you a little further out in time. 3. Take your most pessimistic timeline for your next deliverable and add six months to it. Make a contingency plan because it’s going to take longer to raise your next round. 2. Clean up your cap table. Not all money is the same, and 20 smaller investors who can't finance your next round but take away equity are a deadweight for your next round – sometimes a dealbreaker. 4. Diversify your investors through a syndicate. Make sure you have a mix of competencies, networks, and capital. 5. Make sure you pick investors that have enough reserves to do follow-on investments. INVESTMENT OUTLOOK // INTERVIEW