The T1D Fund: A Disruptive Philanthropic Model to Accelerate Cures

Abstract

In 2015, despite decades of promising research and a large and passionate patient advocacy community, almost no companies were working on curing type one diabetes (T1D). Since then, there has been over USD800 million of venture investment in about 40 companies working on T1D cures, with several billion dollars more in public market investment and money invested to buy several of these companies. The first therapy that intervenes and delays progression of the disease was approved in 2022.

This is the story of the transformation of the fight to cure a prevalent disease using an innovative philanthropic impact investing fund, born under the aegis of a public charity willing to take a risk and powered by over USD100 million of donations from just over 100 affected families. The T1D Fund, which launched in 2016, catalyzed a market to cure T1D and drove these dramatic developments. It may have cracked the code on perhaps one of the most vexing challenges facing disease philanthropies and research scientists across the country and around the world: what is the best way to accelerate the translation of promising research into potential drugs that can run the complicated and expensive gauntlet of our pharmaceutical sector and get delivered to patients?

The T1D Fund model tailored its strategy to capitalize on the complementary strengths of different parts of the life sciences ecosystem. Disease philanthropies build unparalleled knowledge and network through the best research. But the private sector alone, both because overwhelming financial advantages and differentiated expertise, has the power to select and develop the drug candidates that present not only great science but also solid and attractive business potential. Our Fund developed a novel approach that navigated and joined these capabilities. It is working, and it offers a model and some lessons for other disease philanthropies seeking to drive the development of cures.