About The Fund
Knowing the companies we keep. That’s the foundational strength of the Accelerator Fund. Each of our portfolio companies has been thoroughly vetted and invested in by the Pittsburgh Life Science Greenhouse before the Accelerator Fund will consider its own investment.
In the PLSG vetting process, strict criteria are set, including extensive meetings with management, and analysis of such factors as the company’s industry sector, technology, intellectual property, competition and market position. Further analysis includes a review of the company’s business strategy, projected implementation of the strategy and the likelihood that the company will achieve its objectives, both financially and otherwise, based on analysis. Third party reviewers bring an additional level of scrutiny to our investment. And, we have world-class experts in technology and investing and experienced entrepreneurs on our Advisory and Valuation Committees.
PLSG’s unique Executive Program adds another dimension to the level of understanding and performance inherent in the Fund’s informed investment process. Experienced life sciences executives, attracted to the region by PLSG’s robust Executive-in-Residence support structure for new ventures, are brought in to assist companies. When these executives find good matches, they are encouraged to move into a PLSG portfolio company in an executive role. This close professional relationship is a distinct advantage for the Fund and its investment scope.
The Fund’s due diligence process also focuses on an evaluation of likely exit strategies before an initial investment or any follow-on investment is made. Among the considerations are the determination of a universe of strategic buyers, realistic prospects of an initial public offering, and/or whether a return can be achieved by another type of transaction that results in a successful investment and equity event. During the period which the Fund holds an investment, the status of an exit strategy is formally reviewed on at least an annual basis and on a more frequent basis if the need arises. The Fund expects to hold its portfolio investments for between 2-5 years before a liquidity event, although this time frame may be altered as opportunities arise. First-quartile returns for Fund investors are targeted.