Undercapitalization is a major impediment for the growth and survival of Canadian life sciences firms. Proficient management teams are the "sine qua non" criteria in the venture capital decision-making processes. The purpose of this multicase study was to explore strategies successful venture capitalists use to improve their evaluation processes of life sciences management teams' drug development capabilities. The conceptual framework for this study was based on business process management. The purposeful sample consisted of 10 venture capitalists located in the United States and Canada who had expertise evaluating life sciences management teams. The data were triangulated from semistructured interviews, annual reports, company websites, and articles. Collected data were coded to identify underlying themes. Several themes emerged from the analysis process: begin with the exit in mind, collapse learning timelines, conduct systematic due diligence, and cultivate and critique one's drug development expertise. The findings may provide venture capitalists and other investors such as angel investors with a refined framework for improving investment decisions. Life sciences management teams may also attract more private equity financing by understanding the vicissitudes of investor expectations. Increased investment and venture capital support for life sciences companies may revitalize the development of new therapies and effect social change by improving patient lives and investment outcomes.
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