Search company, investor...

Predict your next investment

Venture Capital
alafi.com

Investments

47

Portfolio Exits

13

Service Providers

1

About Alafi Capital

Alafi Capital is a private venture capital firm that has been active in healthcare investing for over 25 years. Early and mid-stage investments in the U.S. and Europe are considered, with emphasis on product-oriented biotechnology, life science technologies, imaging and diagnostics, and medical devices. Included among Alafi Capital's past successes are Amgen, Biogen, Molecular Devices, Tanox, Qiagen, Novocor, Oxford Glycosciences, and Applied Biosystems.

Headquarters Location

1333 Jones St., #1702

San Francisco, California, 94109,

United States

Want to inform investors similar to Alafi Capital about your company?

Submit your Analyst Briefing to get in front of investors, customers, and partners on CB Insights’ platform.

Expert Collections containing Alafi Capital

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Find Alafi Capital in 1 Expert Collection, including Synthetic Biology.

S

Synthetic Biology

382 items

Latest Alafi Capital News

Stanford genetics professor pays $29M after misleading investors in biotech company

Dec 29, 2022

Dr. Stanley Cohen claimed to have discovered the biological process that causes Huntington's disease by Eli Walsh / Bay City News Service Uploaded: Thu, Dec 29, 2022, 8:54 am 0 Time to read: about 2 minutes Stanford University genetics professor Dr. Stanley Cohen paid $29.2 million to settle a lawsuit over misleading claims he made about Nuredis Inc., his now-dissolved biotechnology company. Embarcadero Media file photo by Sinead Chang. A Stanford University genetics professor has paid nearly $30 million in restitution after a judge determined that he misled investors in a now-dissolved biotechnology company he founded. In a judgement issued in June in Santa Clara County Superior Court, Dr. Stanley Cohen was ordered to pay $29.2 million to the Emeryville-based venture capital firm Alafi Capital and the Christopher Alafi Family Trust, the only two investors in Cohen's company Nuredis Inc. Cohen, according to court documents, claimed to have discovered the biological process that causes the neurodegenerative condition Huntington's disease. According to a lawsuit filed in 2018 by Alafi Capital and the Alafi Family Trust, Cohen contacted former Alafi Capital partner Moshe Alafi and his son Christopher Alafi, also an executive with the firm and a longtime friend of Cohen, to seek their investment in Nuredis. The Alafis ultimately invested $20 million into the company in 2016. Christopher Alafi was also named president of the company and held a position on the company's board of directors through 2018, when Nuredis was dissolved. Help sustain the local news you depend on. Your contribution matters. Become a member today. According to court documents, Cohen also claimed to the Alafis that he was developing a drug to combat the supposed cause of Huntington's disease and that the drug had previously been approved by federal regulators to treat an unrelated skin condition and, as a result, would have a cheaper and more efficient path to the start of clinical testing. Cohen did not disclose, however, that even though the U.S. Food and Drug Administration approved the drug in 1975, it was permanently removed from the market less than a year later due to multiple cases of severe blood clotting that led to death and loss of limbs. Cohen still retained some $13 million of the Alafis' investment when Nuredis closed in 2018, according to court documents, but declined to return the remaining funds and instead used it for legal fees. The court described Cohen's conduct as "negligent misrepresentation" to secure the Alafis' investment, which is seen as "a species of actual fraud and a form of deceit" under California law. Cohen was ordered to repay the $20 million investment as well as $9.2 million in interest. Stay informed "The payment by Cohen of over $29 million to my clients demonstrates that in California the law applies equally to elite professors as it does to ordinary defendants," said Michael Gardener, the lead attorney for the Alafis and their investment firm in their lawsuit. Cohen remains employed as a genetics professor at the Stanford School of Medicine. Cohen and his attorney in the lawsuit did not respond to requests for comment. A spokesperson for Stanford University said the university was unaware of the lawsuit and Cohen's work with Nuredis was outside his scope of responsibilities to the university. "We understand from the court's decision in this case that Nuredis tried to sell its (intellectual property) and, when unsuccessful, donated it to Stanford," university spokesperson Luisa Rapport said in a statement. "Stanford has not further developed nor licensed or commercialized the donated IP." Most Viewed Stories Get uninterrupted access to important local health news. Become a member today. Dr. Stanley Cohen claimed to have discovered the biological process that causes Huntington's disease by Eli Walsh / Bay City News Service Uploaded: Thu, Dec 29, 2022, 8:54 am A Stanford University genetics professor has paid nearly $30 million in restitution after a judge determined that he misled investors in a now-dissolved biotechnology company he founded. In a judgement issued in June in Santa Clara County Superior Court, Dr. Stanley Cohen was ordered to pay $29.2 million to the Emeryville-based venture capital firm Alafi Capital and the Christopher Alafi Family Trust, the only two investors in Cohen's company Nuredis Inc. Cohen, according to court documents, claimed to have discovered the biological process that causes the neurodegenerative condition Huntington's disease. According to a lawsuit filed in 2018 by Alafi Capital and the Alafi Family Trust, Cohen contacted former Alafi Capital partner Moshe Alafi and his son Christopher Alafi, also an executive with the firm and a longtime friend of Cohen, to seek their investment in Nuredis. The Alafis ultimately invested $20 million into the company in 2016. Christopher Alafi was also named president of the company and held a position on the company's board of directors through 2018, when Nuredis was dissolved. According to court documents, Cohen also claimed to the Alafis that he was developing a drug to combat the supposed cause of Huntington's disease and that the drug had previously been approved by federal regulators to treat an unrelated skin condition and, as a result, would have a cheaper and more efficient path to the start of clinical testing. Cohen did not disclose, however, that even though the U.S. Food and Drug Administration approved the drug in 1975, it was permanently removed from the market less than a year later due to multiple cases of severe blood clotting that led to death and loss of limbs. Cohen still retained some $13 million of the Alafis' investment when Nuredis closed in 2018, according to court documents, but declined to return the remaining funds and instead used it for legal fees. The court described Cohen's conduct as "negligent misrepresentation" to secure the Alafis' investment, which is seen as "a species of actual fraud and a form of deceit" under California law. Cohen was ordered to repay the $20 million investment as well as $9.2 million in interest. "The payment by Cohen of over $29 million to my clients demonstrates that in California the law applies equally to elite professors as it does to ordinary defendants," said Michael Gardener, the lead attorney for the Alafis and their investment firm in their lawsuit. Cohen remains employed as a genetics professor at the Stanford School of Medicine. Cohen and his attorney in the lawsuit did not respond to requests for comment. A spokesperson for Stanford University said the university was unaware of the lawsuit and Cohen's work with Nuredis was outside his scope of responsibilities to the university. "We understand from the court's decision in this case that Nuredis tried to sell its (intellectual property) and, when unsuccessful, donated it to Stanford," university spokesperson Luisa Rapport said in a statement. "Stanford has not further developed nor licensed or commercialized the donated IP."

Alafi Capital Investments

47 Investments

Alafi Capital has made 47 investments. Their latest investment was in Resolve Biosciences as part of their Series B on October 10, 2022.

CBI Logo

Alafi Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

10/24/2022

Series B

Resolve Biosciences

$71M

No

11

4/26/2021

Series A - II

Edifice Health

$12M

Yes

3

12/10/2020

Series A

Resolve Biosciences

$24M

Yes

3

12/28/2015

Series C

Subscribe to see more

$99M

Subscribe to see more

10

6/4/2015

Series B

Subscribe to see more

$99M

Subscribe to see more

10

Date

10/24/2022

4/26/2021

12/10/2020

12/28/2015

6/4/2015

Round

Series B

Series A - II

Series A

Series C

Series B

Company

Resolve Biosciences

Edifice Health

Resolve Biosciences

Subscribe to see more

Subscribe to see more

Amount

$71M

$12M

$24M

$99M

$99M

New?

No

Yes

Yes

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

11

3

3

10

10

Alafi Capital Portfolio Exits

13 Portfolio Exits

Alafi Capital has 13 portfolio exits. Their latest portfolio exit was NxThera on March 21, 2018.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

3/21/2018

Acquired

$99M

4

8/4/2016

Acquired

$99M

1

6/13/2016

Acq - Fin

$99M

1

7/2/2015

IPO

Subscribe to see more

$99M

Subscribe to see more

10

9/3/2013

Reverse Merger

Subscribe to see more

$99M

Subscribe to see more

10

Date

3/21/2018

8/4/2016

6/13/2016

7/2/2015

9/3/2013

Exit

Acquired

Acquired

Acq - Fin

IPO

Reverse Merger

Companies

Subscribe to see more

Subscribe to see more

Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

Subscribe to see more

Subscribe to see more

Sources

4

1

1

10

10

Alafi Capital Service Providers

1 Service Provider

Alafi Capital has 1 service provider relationship

Service Provider

Associated Rounds

Provider Type

Service Type

Counsel

Service Provider

Associated Rounds

Provider Type

Counsel

Service Type

Partnership data by VentureSource

Alafi Capital Team

2 Team Members

Alafi Capital has 2 team members, including current Chief Financial Officer, Bill Weiss.

Name

Work History

Title

Status

Bill Weiss

Chief Financial Officer

Current

Subscribe to see more

Subscribe to see more

Subscribe to see more

Name

Bill Weiss

Subscribe to see more

Work History

Title

Chief Financial Officer

Subscribe to see more

Status

Current

Subscribe to see more

Discover the right solution for your team

The CB Insights tech market intelligence platform analyzes millions of data points on vendors, products, partnerships, and patents to help your team find their next technology solution.

Request a demo

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.