Growing a newco network

Atlas Venture now has two deals where it will work closely with leaders in particular fields of research to turn early stage assets into newcos. The goal is to add an extra layer of scientific validation prior to committing to an initial investment while simultaneously creating a ready-made exit opportunity should the assets reach certain milestones.

Last week, Atlas teamed up with Shire plc (LSE:SHP; NASDAQ:SHPGY) to create startups based to treat rare genetic diseases. Both parties will invest in the newcos, which Shire will have an option to acquire at an agreed milestone for pre-specified financial terms...