(includes all investments of $500,000 or more, listed alphabetically)
Allogene Therapeutics (www.allogene.com)

Allogene is run by the former heads of Kite Pharma (Arie Belldegrun and David Chang). Allogene is a clinical stage biotech company focused on developing off the shelf (allogeneic) CAR T therapies for cancer. Following on Kite’s success, its principals are devoted to finding new cell therapies that can fight cancer faster, more reliably, and less expensively than the competition. In addition to a founder’s stake, Sonostar and its principals have invested more than $1 million in early stage rounds in the company and are pleased to have partnered with Two River on this investment.


Andersen, Renewal by (www.renewalbyandersen.com)

Renewal by Andersen is the nation’s largest residential window replacement business. With individual businesses established based on specific geographic territories, RbA is a direct to consumer marketing solution that sells and installs high quality Andersen replacement windows in consumer’s homes throughout the country. Moore Holdings owns a controlling interest and Sonostar principals own a significant minority interest in the RbA Long Island, New Jersey, Atlanta, San Francisco, Toronto and Midwest territories. Excluding the Moore Holdings investment, Sonostar principals have individually and through affiliated entities invested several million dollars in multiple investments in what continues to be our most successful investment to date.

 

Andie (www.Andieswim.com)

With operations in New York and Australia, Andie is a global direct to consumer women’s bathing suit and swimwear company. Launched in 2018, the business is off to a great start having already distinguished itself for its high quality, attractive, competitively priced products. Sonostar principals invested approximately $750k in the first of what is likely to be multiple rounds for this venture, as the company gear up for its marketing spend in 2019.

 

Aqua Finance Inc. (www.aquafinance.com)

Aqua Finance is a consumer finance company that was formed originally to provide dealers with financing tools and offerings for homeowners purchasing water treatment services for their homes. As part of an effort to expand its finance business to other home improvement projects, HVAC financing, vacuum financing, medical financing and more, and in an effort to create more attractive sources of funding by providing a pipeline of product for loan backed securities, the Company reached out to and agreed to sell itself to Blackstone. Sonostar principals along with various partners from Two River joined the Blackstone acquisition team providing several million dollars of acquisition equity financing. We are excited to leverage our relationships in the home improvement industry to create new and additional markets of loan demand.

 

Baby Generation

Baby Generation is a start up direct to consumer baby stroller and related products company. Since inception, the company has worked to develop a high end stroller with all the features and positives of an UPPA baby or Bugaboo stroller but at less than half the price. To date, the investment has been small (approximately $200k) as the company completes its prototype and begins test marketing in the direct to consumer marketing channel in early 2019. We expect to provide additional capital in subsequent rounds, pending completion of development and successful marketing tests.

 

Grab (www.grab.com)

Grab is the Uber of Southeast Asia. Most well known for its ride hailing services, the company has also expanded to food delivery and mobile payment services. Following its acquisition of UBER’s southeast Asian operations, Grab became the largest ride hailing company in that part of the world. Grab has done multiple financings at increasing valuations. Through an investment vehicle called Silverstone, Sonostar principals and certain of the Two River principals invested several million dollars in a round that gave Grab a post money, post UBER merger valuation of approximately $8 billion. Since that time Grab has done multiple follow on fundraisings, most recently at an $11 - $12 billion valuation and is expanding its offerings to include multiple advancements in the digital economy.

 

Hubble (www.hubblecontacts.com)

Hubble is a direct to consumer e-commerce subscription service providing comfortable daily wear contact lenses to consumers at a price that is 30 – 50% less expensive than the brand leaders. Sonostar principals and Two River were significant founding investors and have participated in each subsequent investment round. Sonostar’s principals have invested approximately $3 million in Hubble, and we are optimistic that this investment will generate a very strong return over the next few years.

 

Kronos Bio (www.kronosbio.com)

Kronos began its operations with proprietary drug screening technologies and has used those technologies to identify novel therapies designed to make inroads against untreatable cancer targets. Kronos is currently advancing two pre-clinical programs – one to suppress MYC driven transcription and one to reduce cell growth and Androgen Receptor expression in treatment resistant cell lines. Sonostar provided $1 million in Founder Capital, alongside our partners from Two River.

 

Rewoven (Willow) (www.hiwillow.com)

Willow is a direct to consumer business selling high quality and comparatively attractive incontinence products (primarily adult underwear/diapers) to consumers at a price that is significantly below the in store competition and without the inconveniences, frustration and embarrassment of in store purchases. The underwear are specially designed to be ultra-thin and absorbent with a sleek, modern fit. Early launch testing went extremely well, and the company expects to roll out an aggressive marketing campaign in 2019. Sonostar has invested approximately $850k in three small early rounds, alongside the Two River team.

 

Vitralogy LLC (www.vitralogy.com)

Vitralogy is an OaaS platform that fully automates data analysis of cooling towers in offices, hotels and apartment buildings in order to assure compliance with regulations regarding the presence and measurement of Legionella disease. The platform is designed to provide an end to end solution enabling building owners to ensure full and complete compliance with Legionella regulations. Sonostar’s principals have invested several hundred thousand dollars in this new technology.

 

Vida Ventures (www.vidaventures.com)

Vida is an early stage biotech fund run by the partners of Two River and Wildcat Capital Management (David Bonderman’s fund). In its first full year of operation, Vida has already realized compelling returns and is poised to repeat the extraordinary historical performance of its investment management team. Sonostar principals have committed $2.5 million to the fund and to its sidecar investment in Allogene.

 

Our Public Securities Portfolio
UroGen Pharma – (URGN) (www.urogen.com)

Sonostar principals and Two River Partners were early investors in this company chaired by Arie Belldegrun, former CEO of Kite and current Chairman of Allogene and Urogen. The Company is focused on the development of therapies in urology for the treatment of Upper Tract Urothelial Carcinoma, Low Grade Non Muscle Invasive Bladder Cancer and CIS of the Bladder. Sonostar principals invested in the Company at an early stage in 2016. Since then, the Company has IPO’d and successfully completed multiple advanced trials. The Company expects to receive its first FDA approval in 2019-20. The Company came public in 2017 in the mid-teens, a significant multiple of our investment.

 

Corbus Biopharmaceutical – (CRBP)

Corbus is our largest public securities investment. We have invested nearly $3 million at various prices with an average investment price in the low $6 range. We believe that the Company’s lead drug, lenabasum, is poised to become the market leading drug for the treatment of scleroderma, dermatomyositis and perhaps cystic fibrosis and lupus. Treating inflammatory and fibrotic diseases by targeting the endocannabinoid system CB2 receptor, lenabasum is expected to have its top line Phase 3 results read out in scleroderma and dermatomyositis in 2020. We eagerly await those results.

 

Global Blood Therapeutics – (GBT)

GBT is a large and relatively recent position that we have established in anticipation of accelerated approval for Voxeletor, its lead drug candidate for the treatment of sickle cell disease. In the first half of 2019, we expect the Company to review its compelling data with the FDA sharing safety and efficacy data in its Phase 2 trials which showed a statistically significant increase of hemoglobin in sickle cell patients. We believe that meeting and data share will provide the basis for an accelerated approval pathway for Voxeletor. Sonostar and its principals purchased GBT shares in the low to mid 30’s in the fourth quarter of 2018.

 

Some of our prior successes and failures
Successes -

Paradigm Direct – A performance marketing company – sold to Mosaic for $200 million.

Velcera (Pet Armor) – A generic flea and tick product company sold to Perrigo for $160 million.

USHS – the largest kitchen and deck remodeling company in the US, IPO’ed for 10x and subsequently sold to Home Depot.

Marquis Jets – The first 25 hour private jet card subscription service. Sold to Net Jets for 3x return.

Wintegra – a fabless semiconductor company providing single chip solutions for the convergence of voice and data infrastructure – sold to PMC – Sierra for $240 million.

Keryx Biopharmaceuticals – early stage biotech company focused on development of perifosene for cancer as well as various drugs for chronic kidney disease. IPO’ed and subsequently sold shares in the market at prices ranging between $7 - $18 per share.

Kite Pharma – under the leadership of Arie Belldegrun, Kite developed one of the first CAR T drugs to be approved by the FDA. We were an early investor and participant in Kite’s IPO. The Company was sold to Gilead for $11.9 billion in late 2017.

 

Some Failures –

Double Agent – interactive search engine and information organization portal. Company was unable to raise additional funds and closed in 2001.

Leading Web Advertisers – An advertising monitoring service providing real time advertising tracking on the internet. Company was sold to CMP in 2002 at a substantial discount to the value of our investment.

Tigris Biopharmaceuticals – start up biotech focused on early stage cancer research. The Company was sold to a private investor at a substantial discount to our investment.

Night Operations Systems – High powered military grade flashlight. Unable to raise additional funds after several years of delayed development.

Golden Goal Soccer and Lacrosse Tournament Park – 300+ acre sports park featuring state of the art synthetic fields and housing for youth soccer and lacrosse. Fell victim to the recession in 2008 and was sold at auction for $2.5 million – a fraction of the $12 million invested.

Fire Capital – a real estate fund focused on the development of middle-class housing projects in various large cities in India. Hurt by setbacks during the recession, the business was sold for approximately 40 cents on the dollar in 2017.

 

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