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Inside CU Healthcare Innovation Fund with the Director of Investments Gali Baler

Written by VIC Team | Oct 9, 2024 6:04:59 PM

Can you share a bit about your career journey and what led you to your current roles at CU Innovations? How have your previous experiences shaped your approach to innovation and investment?

My career journey has been a blend of academic research, industry experience, and entrepreneurial ventures. I started with a strong foundation in Materials Science Engineering at Cornell University and then earned my Ph.D. in Biomedical Engineering at Northwestern University. My early career involved extensive research in academic settings, which gave me a deep understanding of the scientific process and the challenges researchers face in translating their work into practical applications. I was always interested in entrepreneurship and actively sought out opportunities parallel to my academic work to learn and engage with the community. Some of these experiences included running the student-led innovation and venture challenge program at Northwestern, participating in the management for scientists and engineers certificate program at Northwestern’s Kellogg business school, and the NUVention Medical program which brought together student teams from the engineering, business, medical, and law schools to exercise the creation of a novel venture idea.

In transitioning to industry, I worked with several biotech startups and evaluated early-stage technologies through the Innovation and New Ventures Office at Northwestern where I gained firsthand experience in the commercialization of innovative technologies. This period was crucial in shaping my understanding of the business side of science, including fundraising, regulatory hurdles, and market dynamics.

I moved to Colorado in 2015 to support my wife’s pediatric pulmonary fellowship opportunity at Children’s Hospital Colorado and began to build a new network of relationships in the local ecosystem. Volunteering for the Rockies Venture Club was a fantastic way to get started in both expanding my network and getting exposure to the venture community in Colorado. Through a series of network-based introductions, I became aware of the fascinating work being done by Steve VanNurden and Kimberly Muller at the newly reformed CU Innovations office on the University of Colorado Anschutz Medical Campus. I was excited by their vision of a modernized and comprehensive technology transfer office and began working there in early 2016.

At CU Innovations, I leverage these experiences to bridge the gap between academia and industry. My approach to innovation and investment is holistic, focusing not only on the scientific merit of a project but also on its commercial viability and potential for real-world impact. This dual perspective helps me guide early-stage companies and university technologies towards successful commercialization.

What are some of the biggest challenges you face in your roles, both in managing operations and in directing investments? How do you overcome these challenges?

One of the biggest challenges is balancing the diverse needs of our stakeholders, including researchers, startups, and industry partners. Each group has unique requirements and expectations, and aligning them towards a common goal can be complex. To overcome this, we prioritize clear communication and foster a collaborative environment where all voices are heard.

On the investment side, the challenge lies in identifying projects with the highest potential for impact while managing the inherent risks associated with early-stage ventures. We address this by sourcing great opportunities through our network of co-investors, conducting thorough due diligence, leveraging our network of experts on the University of Colorado Anschutz Medical Campus for insights, supporting companies in our portfolio through meaningful collaboration with the campus, and maintaining a diversified portfolio to spread risk.

Additionally, regulatory and market uncertainties can pose significant hurdles. Staying informed about industry trends and regulatory changes, and being adaptable in our strategies, helps us navigate these challenges effectively.

As Director of Investments, how do you plan to leverage the CU Healthcare Innovation Fund to support early-stage companies and university technologies in the coming years?

The CU Healthcare Innovation Fund is a powerful tool for driving innovation and supporting early-stage companies. We strategically invest in projects that align with our mission of advancing healthcare solutions for better patient care, enhanced provider experience, and efficient hospital operations. We focus on technologies that address unmet medical needs, have strong intellectual property, and demonstrate a clear path to commercialization.

Our pipeline has two primary paths, internal emerging ventures that spin out university research and external early-stage companies that engage in meaningful collaborations with the campus. We also provide comprehensive support beyond funding, including mentorship, access to industry networks, and resources for clinical validation and regulatory approval. By fostering a supportive ecosystem, we aim to accelerate the development and market entry of groundbreaking healthcare innovations. Furthermore, by co-investing with thought leaders across the VC, healthcare, and industry investment landscape, we are able to build valuable investor syndicates that can provide guidance and support to emerging university technologies.

How does CU Innovations foster collaborations between the academic community and industry partners? Can you share some success stories where such collaborations have led to impactful innovations?

CU Innovations acts as a catalyst for collaboration by creating platforms and opportunities for interaction between academia and industry. We organize networking events, workshops, and innovation showcases that bring together researchers, entrepreneurs, and industry leaders.

One success story is the partnership between the CU Anschutz, UCHealth, and argenx; a leading biopharmaceutical company and their drug asset Cusatuzumab for the treatment of patients with AML. The partners collaborated to launch a clinical-stage company called OncoVerity which leverages the CU Anschutz and UCHealth infrastructure of single cell analysis capabilities for multiple types of -omic technologies including genomics, transcriptomics, and proteomics, alongside one of the most comprehensive and highly curated AML patient databases. This enables OncoVerity to gain insights to tumor characteristics and therapeutic response to Cusatuzumab which has now been licensed from argenx. This collaboration is expected to be the first of many novel therapeutics that will benefit from this differentiated approach to oncology drug development. The result is a promising new treatment that is now in Phase 2 clinical trials, demonstrating the power of collaborative innovation to rapidly advance treatments for the benefit of patients.

What role do you see CU Innovations playing in the broader Colorado innovation ecosystem, and how do you collaborate with other stakeholders to drive regional growth?

CU Innovations plays a pivotal role in the Colorado innovation ecosystem by serving as a hub for healthcare and life sciences innovation. We collaborate with other stakeholders, including local incubators, accelerators, and economic development organizations, to create a cohesive and supportive environment for startups and industry.

Our partnerships with institutions like UCHealth, Children’s Hospital Colorado, Fitzsimons Innovation Community, OEDIT, Innosphere Ventures, VIC Tech, and the Colorado BioScience Association help us leverage regional strengths and resources. By working together, we aim to attract talent, investment, and industry partnerships to Colorado, driving regional growth and establishing the state as a leader in healthcare innovation.

What criteria do you use to evaluate potential investments for the CU Healthcare Innovation Fund? Are there specific areas of healthcare innovation you are particularly focused on?

When evaluating potential investments, we consider several key criteria:

Scientific Merit: The innovation must be based on sound science and demonstrate a clear advantage over existing solutions.

Market Potential: There should be a significant market need and a viable path to commercialization.

Team: The founding team should have the expertise and commitment to drive the project forward.

Intellectual Property: Strong IP protection and strategy is crucial for securing a competitive edge.

Regulatory Pathway: A clear understanding of the regulatory requirements and a feasible plan to meet them.

Syndicate Investors: Healthcare innovation is a team sport and the quality and construction of a thoughtful co-investor syndicate is important.

We are particularly focused on areas such as data-driven precision medicine, digital health, and novel therapeutics. These fields have the potential to transform healthcare and improve patient outcomes significantly.

What advice would you give to aspiring innovators and entrepreneurs looking to make an impact in the healthcare sector?

My advice to aspiring innovators and entrepreneurs is to stay patient and persistent. The journey of bringing a healthcare innovation to market is often long and challenging. The project that ultimately makes it to the market may not happen on the first attempt but perhaps the second, or third, or fourth. Many successful entrepreneurs have also notched several failures along the way that provide fantastic learning opportunities for the next venture.

Focus on building a strong, multidisciplinary team that can navigate both the scientific and business aspects of your venture. Seek mentorship and be open to feedback, as learning from others’ experiences can be invaluable.

Lastly, always keep the end goal in mind: improving patient care. Allow the desire to make a meaningful difference drive you through the inevitable ups and downs of the entrepreneurial journey.