Jeb Keiper, CBO of Nimbus Therapeutics LLC, has written a great blogpost (as part of the “From The Trenches” feature of LifeSciVC) about corporate financing, program-focused subsidiaries, the differences between “inc.” and “llc”, and much more. The intro:
“Unsurprisingly, I had not given that much thought to the parent entity of my new employer when I joined Nimbus in 2014 – what was the difference between an “Inc” and an “LLC” anyway, how much could it matter? The answer: plenty. In 2010 Nimbus Discovery LLC came out of stealth mode in a post called “Discovering Nimbus“, now Nimbus Therapeutics. The idea, born out of the capital crisis of ‘08-‘09, created structural flexibility for a platform company as it worked on therapeutic targets and has been well covered by prior blogs (here, here).
In April of this year, Nimbus announced an agreement where Gilead bought one of our program-focused subsidiaries, Nimbus Apollo, which comprised our entire ACC program, including the lead clinical molecule for NASH. This transformative deal, discussed here, gave an opportunity to, as one of our lawyers put it, “take the Ferrari out on the highway and really see how it runs”: a fitting test of this corporate structure. The track results are solid, but like any first run with the throttle wide open, some fine-tuning is necessary; so with that experience and working in this LLC model for 18 months, it is now time to blog about “life in the trenches” with this structure. I’ll focus on the operational aspects of starting, growing, financing, and recently, exiting and recycling capital within this structure, all while producing new medicines for patients. What comes next is a deep dive on the admittedly wonkish subject of corporate structure in the biotech space.”