• Solo GP leverages career for pre-Seed medtech investing
• Names three Venture Partners to investment committee
• Pipeline has 15 targets, two prioritized for diligence
• Firm now heavily networked and advised
• Underscores Tennessee opportunity to gain ground

MEMPHIS-based Eric Heinz, a veteran of medical-technology operations and advisory roles, on Nov. 19 filed with the SEC regarding plans for Heinz Ventures Fund I LP to raise $10MM.

General Partner Heinz Ventures LLC on Nov. 27 executed a first close for Fund I.

The new entrant promises to add value at Feasibility, Growth, and-or Exit stages for future portfolio teams and clients.

That first close probably translates into added momentum for Heinz's plans.

For, as stated in the Nov. 19 SEC filing, "Heinz Ventures Fund I GP, LLC and its affiliates receive management fees and performance fees, and/or allocations based on capital commitments of limited partners of the Fund."

Heinz, a 44-year-old Chicago native, told VNC his pipeline of potential pre-Seed investment candidates currently includes 14 medtechs and 1 biopharma target -- with five stand-out candidates identified.

Two of those stand-out opportunities are now marked for full diligence to be completed within 60 days, said Heinz.

Heinz has not yet publicly disseminated Fund I investment criteria or disclosed the amount of Fund I capital raised.

Speaking as industry veteran and solo GP, Heinz said he want to see more medtech, biopharma and life-sciences companies rising in Tennessee and relocating here from elsewhere.

It's a challenge, he acknowledged, but a variety of trends suggests to him Tennessee can have more wins -- if, that is, more people join in the effort to create infrastructure, train and recruit talent, and all the rest.

Top to Bottom: Heinz, Dugan, Iyer, Benson

Heinz provided some insight on his process during a wide-ranging 2024 panel discussion webcast by VC Lab (powered by Decile Group).

Asked by that panel's moderator to comment on how he adds value for pre-Seed founders, Heinz emphasized that his medtech network helps avert startups' inadvertent "creation of risk", while his experience connecting validated young companies with strategic partners and-or bidders typically results in growth of each party's revenue and value.

Heinz then explained that he typically starts diligence by examining the clinical need for the solution at the heart of each deal, assaying such factors as the specific disease state at-issue and the existence of any alternative treatments, as well as the science, clinical data, animal models, etc., associated with known market incumbents.

During that same online discussion, Heinz said that while he welcomes such review opportunities -- even at the 'ideas-on-a-napkin' stage -- he too often finds that the needs and objections of clinical users and commercial market-makers have not been sufficiently examined by founders.

Inadequate examination of pre-Seed and Seed-stage risks and opportunities may be contributing to diminished quality of medtech and biopharma investment opportunities for later-stage institutional or corporate investors, Heinz told VNC.

Given that perspective, it's no surprise that the Heinz Ventures website offers resources indicates that presently "both startups and established companies" within or beyond the prospective Heinz venture portfolio may access Heinz Ventures's talent recruitment, fractional CxO, strategic organic growth, M&A advisory, and related services.

Heinz and his team have aggregate experience with Medtronic, Smith & Nephew, Titan Medical, Zimmer Biomet, Heartware, Ethicon Endo-Surgery, Johnson & Johnson, Deerfield Imaging and PCIGITI, among other corporate, consulting and-or provider experience.

Industry veterans all, Heinz's three venture partners are Lori Dugan (Scottsdale), Santosh Iyer MBA MASc (Boston area), and Memphis-area-based Nick Benson PhD MBA MA (Memphis area).

The venture partners now comprise Heinz Ventures's investment committee.

The founder described members of the group as each bearing "a wealth of expertise, leadership and networks that will enhance our ability to scout, screen and support transformative MedTech innovations. Their unique background aligns strongly with our mission to inspire, innovate and invest in the future of healthcare."

Heinz said that in 2015 he began very deliberatively moving toward his current focus on Venture opportunities, initially drawing on his own medtech management and M&A consulting, fractional C-level staffing, medtech market, intellectual property management and related services.

In a recent LinkedIn post, Heinz said he believes solo general partners -- a category of which he is currently representative -- "are uniquely positioned to address gaps, build relationships, and drive innovation in the investment landscape."

Heinz made that comment with reference to a Dec. 24 Pitchbook report, in which one report described the go-solo-GP trend as "the spiritual evolution of angel investing."

With Fund I underway, Heinz told VNC he foresees standing-up new companies, in the manner of a venture studio or incubator.

He added that he believes his experience as an inventor and a licensed patent agent will be a factor in enabling his firm and its affiliates to create, hold and license valuable intellectual property.

Meanwhile, Heinz has been activating and expanding his new and existing professional networks during the past two years.

Reflecting his North American focus, he said he has in the past two years held Heinz Ventures networking events in Memphis, Minneapolis, Nashville, Dallas, Northbrook/Chicago, San Diego, San Francisco, Philadelphia, Coral Gables/Miami, Dallas and Toronto. Some of those events coincided with major industry conferences.

Heinz is certainly aware of pre-Seed opportunities outside the U.S., and he acknowledges Europe as potentially fertile ground.

He told VNC he holds both U.S. and Luxembourg citizenship, adding that the Swiss Parliament voted to accept U.S. FDA-approved therapeutics in Switzerland. The U.S. previously achieved similar agreements with the European Union and with the United Kingdom.

Beyond his connections in medtech and financial circles, Heinz said his alumni ties have been very helpful.

Heinz's academic credentials include an MBA from the Kellogg School of Management at Northwestern University, a master's in engineering management (MEM) from Christian Brothers University, a bachelor's in bio-engineering (premed) from the University of Illinois Urbana-Champaign, and a biodesign graduate certificate from Stanford University, according to his LinkedIn.

He said he also now finds his relationships with the Illini Angels program of Illinois Ventures, and his network among Northwestern's Kellogg School graduates very important.

Among other ties, last fall he told his newsletter readers that he had become associated with Health Wildcatters in Dallas, and Northwestern Medicine's Querrey Lab Business Research Fellowship.

He continues exploring key markets for productive network ties and noted, for example, that he plans to explore participation in the emerging Greater Nashville Venture Capital Association as well as the region's entrepreneur centers and campus innovation organizations.

Asked about his firm's advisors, Heinz referred to a recently established relationship with Baker Donelson in Memphis, as well as continuing work with attorneys with Stamford-based Gora LLC.

The firm's banking is via nonbank fintech Mercury Technologies and Heinz's fund administrator is Decile Partners of Palo Alto. Mercury's banking services are provided by banks including Memphis-based Evolve Bank & Trust.

Founder Heinz and his wife, Jessica Heinz, have resided in Shelby County since 2017, and lived in Memphis previously. She is a Certified STOTT Pilates Instructor. The couple has three sons, ages 7, 11 and 14. VNC

.last edited 1413 6 January 2025