The company aims to develop these innovations into marketable products with high returns, following a business model that involves selecting the most commercially attractive medical innovations, developing them to maximize return on investment, and commercializing them through the sale of companies or out-licensing of products. With a well-structured selection process, Karolinska Development screens over 1,300 projects to identify innovations with significant commercial potential. The portfolio companies are initially operated as virtual companies, with minimal fixed costs and outsourced technological development. The innovators often participate as board members and scientific advisors. Karolinska Development and other investors provide capital to reach the next milestone, and projects that fail to meet targets are discontinued. The company intends to realize value by exiting portfolio companies or through out-licensing, preferably at Phase II, as it indicates the pharmaceutical's effect on patients and enhances negotiating power. Founded in 2003, Karolinska Development is based in Solna, Sweden, and focuses on investing in life science companies, building them around leading scientists and experienced management teams, and connecting with a strong global network.