Mammoth Scientific Investment Thesis

Tl;dr: Investment thesis for Mammoth Scientific which is focused on life science and bio tech companies. They raised their first fund of $100m.

Mammoth Scientific invests in early to growth-stage life science and biotech companies. We seek to add value through a deep functional understanding of healthcare delivery, contracting, private and CMS reimbursement, creation of new CMS reimbursement pathways, FDA, EU and data regulatory requirements, and informative data technologies. Additionally, our team has strong relationships with leading physician, surgeon, healthcare executive, and financial technology thought leaders in the US and around the world.

They apparently closed a $100m fund in July 2021.  The investment thesis isn’t great, but it’s better than some.

Mammoth Scientific Investment Thesis

Our Objective

Mammoth Scientific’s objective is to generate top-quartile returns through the long-term capital appreciation of investments in private companies. These investments will be structured as equity, convertible securities and other equity-related investments in the healthcare and information technology sectors, and are expected to include portfolio companies specializing in medical devices, infrastructure, information technology, financial technology, biotechnology, wellness and life sciences.

Why Now

As the past year has dramatically demonstrated, healthcare and technology are perhaps the most critical components of the national and global economy. Innovation in healthcare, already vigorous, has been dramatically accelerated by the massive amounts of spending on fundamental and clinical life science research over the past year. Technological advancements to provide greater value to individuals and businesses alike have significantly accelerated to meet new needs for distanced transactions and relationships. We believe the healthcare and technology sectors, coupled with the pre-existing trends of an aging population, increase in chronic diseases and an increasingly affluent populace seeking longevity and a better quality of life, are poised for substantial growth over the next decade.

The Challenge

Although investments in healthcare present a large economic opportunity and strong tailwind as a result of heavy R&D throughout the Covid pandemic, it is challenging for investors to take advantage of earlier stage healthcare opportunities due to the structural, regulatory and reimbursement complexities of the healthcare system. Similarly, we believe the unique complexities of technology, specifically financial technology, have been highlighted by recent volatility and the continued rapid decentralization1. Innovation to keep and expand financial reach, including the massive wealth transfer ($68 Trillion) from an aging population to Baby Boomers and Generation X, has been expedited as virtual processing has become a necessity2.

Why Mammoth

The Mammoth team is led by highly successful and seasoned physician entrepreneurs and operational managers some of whom have a twenty year track record of creating and investing in multiple successful startups with large exits to major global companies (Abbott Laboratories, Boston Scientific, Johnson & Johnson) or the public markets.

We expect our deep functional understanding of healthcare delivery, contracting, private and CMS reimbursement, creation of new CMS reimbursement pathways, and FDA and EU regulatory requirements can uniquely steer Series A and beyond companies to a successful outcome. Furthermore, our team’s strong relationships with leading physician, surgeon, healthcare executives and global thought leaders can create new avenues for profitability. We are also well connected with the senior management of many of the largest healthcare companies as well as private and institutional investors.

Our founders are also financial technology entrepreneurs and operational managers some of whom have a twenty year track record of creating and contributing to financial technology firms whose exits and recapitalizations have totaled over $1.9 Billion. By assisting founders in the financial technology sector, including in emerging technologies such as AI, Machine Learning, blockchain and rapid computation, to navigate regulatory processes in areas where innovation has outpaced clear regulation is another key to success.

Our knowledge, experience, and networks are anticipated to provide us with key advantages: early looks at promising companies, acceleration of regulatory pathways, and participation in syndications with leading venture investors.
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