Professional Documents
Culture Documents
8 BTK4004 What An Investor Looks For in Biotech 03jan2011
8 BTK4004 What An Investor Looks For in Biotech 03jan2011
8 BTK4004 What An Investor Looks For in Biotech 03jan2011
The Fund
The Partnership
3 yr
5 yr
10 yr
IRR 70+%
Need 10X in 5
years
Venture Series A
Revenue - paying
Customers
$1- $3M
IRR 50%
Need 5 X in 34 years
IRR 40%
Need 3X in 2-3
years
Late stage
mature business
IRR 25%
Need 1.25X in
12 mos
$15-50M
Strategy:
Strategically
Banks:
Universities:
Corporations
Caterpillar
ADM
Hospitals
Methodist
Borgess
Bronson
Foundations
Stage of investments
Focus
Pre-Seed
Description
Team
$ Needed
Keys to
Success
IP/Technology
Seed
Product-indevelopment
Technologist /
founder/business Plus first senior
mgmt team
development
member
<$500K
$250K to $1M
Identifying
Finding
technology via
development
relationships
Determining
partners
Developing
commercial
business strategy
viability
Recruiting BOD
Accessing
rights/Recruiting & SAB
CEO
Early Stage
Mid-Stage
Product at beta
clients
Full customer
pipeline
Senior mgmt
team formation
Senior mgmt
team in place
$1M to $5M
$2M to $20M
Growing the
Managing
sales pipeline
growth
BOD and SAB in Becoming
place
profitable
Identifying exits
Exit
Business
Expansion
Public Markets
Groundwork
Interim management
Talent
Toward
independence
Incorporation
Office space
Payroll and
benefits
Accounting
IT and telephone
Advisory board
and BOD
Marketing/PR
Financial model
and pricing
Business
development
Operations
processes
Product
development
Recruiting and
hiring
Organizational
structure
Compensation
planning
Staffing models
Culture
building
Product
commercialization
Customers
Revenue
Space to grow
Next round
funding
Updated Advisory
board
and BOD
Squeeze
Clear and realistic idea of who and what the competition is and how
the idea will reach the market in the form of a product.
Know where the pain is that this product addresses and where a the
incentives are to adopt the new product (the value proposition).
Risk
IP
Market
Technical
Financing
Management
Return
How
Full-ratchet
Weighted average
Warrant coverage
Decisions other
Protective provisions
OPEN CHANNEL
SOFTWARE