BioAngels makes first local investment

Members of South Australia's BioAngels have made their first investment into the South Australian bioscience sector, selecting Australian Orthopaedic Innovations from more than 20 applications.

Although the amount of funding provided is confidential, BioAngels executive director John Ballard said it was significant, representing up to 10 per cent of the equity in the start-up.

"But it's not a fund, people are investing their own money," Ballard said.

Ballard said Australian Orthopaedic Innovations had two development projects. The first product is an adaptive orthopaedic handpiece capable of detecting torque changes as drilling into bone, being developed in association with Flinders University scientists.

The second project, based on a Perth invention, is a method to deliver antibiotics to bone grafts to prevent infection, a serious problem affecting between 5-15 per cent of grafts.

Ballard said BioAngels had taken around 18 months to develop from concept to the first investment. It was set up by a group of businessmen and entrepreneurs with a common interest in the bioscience industry to address a perceived lack of early-stage capital available to early stage companies in South Australia.

"There are many venture capital funds prepared to invest in early-stage biotechnology in Australia. However, despite the fact that South Australia is a hub for innovative research and development within this field, not one of these funds is located in this state," said BioAngels treasurer Paul Flavel.

"BioAngels provides an alternative source of funding at an early stage. When coupled with mentoring support, this helps an enterprise meet product and business-related milestones, making it attractive for later investments."

Currently the investment network has 21 members, and plans are to keep it at around the same level. Members meet regularly to assess proposals.

The organisation plans to invest in around three start-up companies annually in the broader bioscience space, including biotechnology, medical devices and agriculture, said Ballard, who was formerly CEO of Adelaide company GroPep.