🧬 Parag Shah - Part 1 | Rethinking Biotech Startup Funding | Building Smarter Capital Strategies | Risk, Reward & Leadership in Investing
February 3, 2025
Part 1 of 2: Our guest today is Parag Shah, CEO and Founding Managing Director of K2 HealthVentures. K2 HealthVentures is an alternative investment firm that provides flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. Committed to making a broader impact, K2 also donates a percentage of its profits to support underserved areas in healthcare.
Before founding K2, Parag was Senior Managing Director & Group Head of the Life Sciences practice at Hercules Capital, where he led the fund’s public offering and managed over $2 billion in investments. His deep expertise in life science and healthcare financing was further shaped through key leadership roles at Comerica, Imperial Bank, and BankBoston.Parag’s academic background includes a Masters in Environmental Policy & Planning and a Bachelors in Molecular Biology from MIT, where he conducted research at the Whitehead Institute.
With 25+ years of experience at the intersection of science and finance, Parag brings invaluable insights for first-time founders, investors, scientists, and industry leaders navigating the complexities of biotech funding.
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Part 1 of 2: Our guest today is Parag Shah, CEO and Founding Managing Director of K2 HealthVentures. K2 HealthVentures is an alternative investment firm that provides flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. Committed to making a broader impact, K2 also donates a percentage of its profits to support underserved areas in healthcare.
Before founding K2, Parag was Senior Managing Director & Group Head of the Life Sciences practice at Hercules Capital, where he led the fund’s public offering and managed over $2 billion in investments. His deep expertise in life science and healthcare financing was further shaped through key leadership roles at Comerica, Imperial Bank, and BankBoston.Parag’s academic background includes a Masters in Environmental Policy & Planning and a Bachelors in Molecular Biology from MIT, where he conducted research at the Whitehead Institute.
With 25+ years of experience at the intersection of science and finance, Parag brings invaluable insights for first-time founders, investors, scientists, and industry leaders navigating the complexities of biotech funding.
In this episode, you'll hear about:
- How Parag’s NYC upbringing shaped his leadership and risk-taking mindset
- His transition from molecular biology to finance and investing
- Key lessons from his early career in credit and venture lending
- How he helped shape biotech venture credit and redefine startup financing
- When to use debt vs. equity in life sciences fundraising
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Find Our Guest, Parag Shah, at these links:
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Enriched Notes:
Topics Mentioned:
K2 HealthVentures: https://www.k2healthventures.com/
Hercules Capital: https://www.htgc.com/
BankBoston (now part of Bank of America): https://en.wikipedia.org/wiki/BankBoston
Imperial Bank (acquired by Comerica): https://www.comerica.com/
Venture Debt in Biotech: https://www.fiercebiotech.com/biotech/rise-venture-debt-and-when-biotechs-should-and-shouldnt-use-it
Equity vs. Debt Financing: https://www.excedr.com/resources/debt-equity-options-funding-startup
Biotech Startup Fundraising: https://www.excedr.com/resources/biotech-startup-funding-options
Risk-Taking & Leadership in Startups:
Biotech Startup Support: https://www.excedr.com/resources-category/biotech-startup-support
Scaling Biotech Companies: https://www.linkedin.com/pulse/scaling-up-overcoming-multifaceted-challenges-growing-rami-levin-njoqe/
People Mentioned:
Larry Suskind: https://dusp.mit.edu/people/lawrence-susskind
John Ehrenfeld: https://www.linkedin.com/in/johnehrenfeld/
Timestamps:
00:00 Intro
02:59 Parag’s background and early career in finance
06:24 Growing up in NYC and how his parents influenced his mindset
09:42 The impact of education and key mentors in shaping his path
15:11 Transitioning from science to finance, why he left the lab
19:56 Lessons from Bank Boston and entering the world of credit investing
24:32 Moving to Argentina and unexpected entry into banking
29:56 Joining Imperial Bank and the challenges of building biotech venture credit
36:37 Understanding risk-taking and decision-making in biotech financing
42:52 When startups should use debt vs. equity and how venture debt fits into biotech funding
46:02 Outro
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