Markets

PIPEs for Smoking Pot (Stocks)

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The smoke furling off of joints in a growing number of states and the federal government’s increasingly laissez faire posture concerning pot’s illegality are juicing momentum for a crop of issuers looking to take advantage of the budding marijuana industry. Despite unease about ex-convicts involved in some companies, the undeniable capacity for rampant fraud, and federal government’s ultimate reaction – under federal law, marijuana use for any purpose is still illegal – publicly traded marijuana issuers have begun to find an audience among investors. Eight companies linked to the marijuana trade have raised $31.6 million in nine equity private placements since the beginning of 2013, according to PlacementTracker, a division of Sagient Research. Over the same period, Seattle-based plant extract supplier Plandai Biotechnology (PLPL) and Irvine, Calif.-based indoor agriculture equipment supplier Terra Tech Corp. (TRTC) agreed to equity lines with potential drawdowns of $15.3 million and $5 million, respectively.

Markets

Life Science Issuers Crowd the Best and Worst Performing Deals of Year

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The volatile biotech sector dominates the year’s top 40 best and worst performing growth equity private placement (EPP) deals, as investors prove the adage that a good hit will take you far – as well as its converse, that a miss can be devastating. Outside of life sciences companies, internet media and alternative energy companies rewarded investors while conventional energy and mining companies proved treacherous. Registered and unregistered EPPs by biotech, healthcare and pharmaceutical development companies comprise 46% of the best and worst performing deals by emerging growth companies in 2013, according to data compiled by Sagient Research and analyzed by Growth Capital Investor. (For the complete list of best and worst deals, see pages 12-13 of the current issue of Growth Capital Investor.)

Life science issuers closed 44 out of 80 combined best performing registered and unregistered private placements as of December 15. They also closed 30 of the 80 worst performing deals to date in 2013.

Markets
OrbiMed

OrbiMed Closes Fifth Healthcare Fund

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OrbiMed Advisors has closed its OrbiMed Private Investments V with just over $735 million, including $36 million from the general partner. Fund V will invest in all stages and sectors of the healthcare industry, with a focus on biopharmaceutical, medical device and diagnostics companies in North American and Europe. Investors in the fund include some of the largest endowments, foundations, sovereign wealth funds and financial institutions globally. OrbiMed Advisors is an long active investor in equity private placements into emerging growth biotechs and medical device companies. Recent investments include Exact Sciences Corp (EXAS), ADADIA Pharmaceuticals (ACAD) and Aerocrine AB (AEROB:SS).

Markets

North Bridge Raises $580M for Second Growth Equity Fund

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Boston-area based North Bridge Growth Equity has raised a second growth equity fund, announcing it has more than $580 million in committed cash to bankroll emerging growth companies that have a technology focus. This brings North Bridge Growth Equity’s total capital under management to more than $1.1 billion. North Bridge Growth Equity II will continue its strategy of investing primarily in privately held, technology and tech-enabled businesses that are entrepreneur owned and managed, and have grown to tens of millions in revenue with little or no outside capital. North Bridge’s growth equity arm launched in 2007 with a $545 million fund. It lists 12 portfolio companies for that fund including publicly traded parts manufacturer Proto Labs (NYSE: PRLB) and Manchester, NH-based Dyn, a provider of online services such as DNS and e-mail delivery.