Medtech
Funding Platform Expansion from Existing Revenue
Company profile
Late-stage oncology biotech approaching FDA approval
Situation
Positive Phase III data and NDA submission create a near-term launch opportunity.
Capital need
$25M to fund commercial build-out, manufacturing scale-up, and working capital during launch ramp.
Severan Structure (Illustrative)
• $25M investment
• 6.5% royalty on product revenue
• 2.25× capped return• Royalty terminates once cap is reached or at term
• 6.5% royalty on product revenue
• 2.25× capped return• Royalty terminates once cap is reached or at term
Strategic Outcome
Launch financed without dilution, preserving ownership ahead of commercialization.
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Biotech — Illustrative Case Study
Financing First Commercial Launch
Company profile
Commercial-stage surgical technology company
Situation
First-generation product launched successfully with strong surgeon adoption and growing revenue (~$30M run rate). Next-generation instrument approaching regulatory submission.
Capital need
$25M to fund manufacturing expansion, clinical evidence generation, and regulatory submission.
Severan Structure (Illustrative)
• $25M investment
• 8% royalty on revenue from the first & second commercial product
• 2.25× capped return
• Royalty terminates once cap is reached or at term
• 8% royalty on revenue from the first & second commercial product
• 2.25× capped return
• Royalty terminates once cap is reached or at term
Strategic Outcome
Existing product revenue funds development of the next platform without equity dilution or governance transfer.
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The Commercialization Capital Gap
Find clear, straightforward answers to the most common questions about our approach. Severan provides structured, non-dilutive capital to life sciences companies through synthetic capped royalty and revenue-based financing.
Why is there a financing gap in biomedical commercialization?
Where is the funding gap most persistent?
When is revenue financing most attractive?
Why revenue financing vs. equity and debt?
What is royalty financing?
What is synthetic capped royalty financing?
