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About the LabCorp Venture Fund

Investment Thesis

The LabCorp Venture Fund invests both in companies directly related to LabCorp’s primary clinical laboratory diagnostics and drug development businesses as well as companies in adjacent or complementary areas. Rationale for investment includes:

  •  Strategic ROI and potential for attractive financial return; historical gains are reinvested to fund future opportunities
  •  Companies operating in areas of strategic interest that LabCorp wants to learn more about or could potentially enter in the future
  •  Companies working on concepts with the potential to disrupt parts of LabCorp’s businesses
  •  Assets LabCorp has an interest in later owning, licensing, or forming a joint venture around
  •  Existing partners where LabCorp wants to have a proprietary position in a relationship, offer a new capability, or share in the success of products and services it helped bring to market

 

Top Strategic Priorities:

Icon Data Driven

Transition to a Data-Driven Drug Development Process

  • Market is dealing with increased trial complexity and competition for patients and investigators
  • Greater need for scalable, innovative tools and processes to initiate and manage trials
Icon Consumer Driven

Capitalize on the Growing Importance of the Consumer

  • Patients have an increased interest in and influence over healthcare decision-making
  • Technological advances are driving expectation of convenience across all industries
Icon Value Based Care

Deliver Upon the Goal of Value-Based Care

  • Stakeholders aim to reduce the overall cost of care and improve efficiency in delivery of care
  • Increased provider demand for advanced tools and analytics that deliver better outcomes via personalized medicine and population health

Funding Characteristics

Investments are typically early stage (Series A or Series B). LabCorp’s typical initial investment is $500K-$2M, reserving up to $5M for follow-on investment. LabCorp typically does not lead financing rounds, but prefers to co-invest with an institutional or strategic lead.

 

LabCorp Venture Fund Strategic Differentiators

Access to Scientific, Technical & Commercial Expertise

  • Nearly 5,000 clinical laboratory tests available with dedicated Specimen Access Team to enable research access
  • Commercial experience in developing and launching new tests and products

Touchpoints Across the Healthcare Ecosystem

  • More than 1,850 patient service centers and >5,500 in-office phlebotomists
  • Broad physician, health system, and managed care relationships
  • Significant IT connectivity, including 72K electronic data interfaces with clients

Increasing Consumer Focus

  • Pixel by LabCorp consumer-initiated testing with both self-collection and phlebotomy offerings
  • Mobile and web-enabled tools to allow consumers to access lab test results, make appointments, pay bills, and learn more about clinical research opportunities

Broad Healthcare Data Assets

  • Proprietary data sets with more than 30 billion lab test results covering roughly 50% of the United States population
  • Lab orders from >400K unique practicing physicians annually

Global Logistics & Operations Expertise

  • Specimen transportation, processing, and result delivery for >2.5M patients per week
  • Covance central lab services ships >4.4M supply kits annually to over 90 countries

Potential for Partnerships Outside of Investment

  • 50% of portfolio companies have additional agreements in place with LabCorp, including: technical evaluations, sponsored research, co-development, service agreements, data access & use agreements, licensing, and commercial collaborations