|
---------- Forwarded message ----------
From: Medical Devices Group <groups-noreply@linkedin.com>
Date: Tue, Apr 4, 2017 at 6:03 PM
Subject: [New announcement] Raising Early Stage Investments
To: Steve Scott <stevescott@techacq.com> Raising Early Stage Investments was a panel topic at the Medtech Showcase in January.
You can watch the entire panel at http://medgroup.biz/earlystage for free.
Among the points that caught my ear:
• Joseph Gulfo: When you raise public money, ask (1) What is the maximum percent of a company the investor can own and (2) What is the investor's minimum bite size? These help you determine if you'll get their money.
• Justin Klein, NEA: Raise an amount of capital that funds a substantial risk reduction in your company, that sets up the next phase in the company's development for existing investors, new investors, and your management team.
• Lara Abbaschian, Lightstone Ventures: For every thousand introductions, we will take 300 meetings. From those, we will do diligence on maybe 75 and maybe 4 deals. She invests 10-15MM in an average deal size over the course of an investment; it depends who we are syndicating with, how many additional rounds we think will be necessary.
• Derrick Li, TPP Healthcare: China throws a wrench into how traditional venture capitalists make valuations because the typical Chinese company wants to find a hot commodity and make a ridiculous valuation. But the traditional US venture capitalist brings a lot of non-quantitative assets to the table.
• Gulfo: Having strategic partners and having a concept within the investor's specialty will help your case.
• Abbaschian: A small market with a straightforward trial to run de-risks your investment, making a smaller market more appealing. When you're talking about a big market like Type II diabetes, you increase the investor's risk.
• Klein: It's harder to predict when an investment will mature versus the price for which it will mature. The best outcomes come when you're not trying to sell a company to achieve some number but when you can generate competitive interest from multiple potential buyers. An average investment from us is $30MM and our goal is a $100MM gain, a 4x multiple. Anything less than 3x is not going to fly and our bandwidth is an issue when you consider overseeing the company.
• Abbaschian: We might talk to a company for a year before investing. You don't just want someone to write a check, you want good partners, those who will add value beyond the check.
• Klein: When talking Friends and Family (non-institutional money), do it in the form of a convertible note that gives an appropriate discount to convert into a price per share at your next equity financing and this will avoid a down round.
Klein expects we'll see regulatory loosening and up to 10 IPOs this year, each doing at least $25MM in revenue.
Do any of these points surprise you? Do you have related insights to share?
++++++++++
GULFO at the 10x Medical Device Conference
I'm delighted to welcome Joseph Gulfo back to the 10x Medical Device Conference this year. On May 2, he'll give a talk entitled, "Can FDA be Brought Back to the Future - Returning to Safety and Effectiveness."
Over the past two decades, the FDA has gradually moved away from safety and effectiveness as the criteria upon which approval decisions for devices, drugs, and biologics are made. Fearing adverse outcomes after approval, the FDA has substituted benefit risk for safety and clinical outcomes and clinical benefit for effectiveness.
This has necessarily driven development time and costs higher and higher, and has dissuaded the development of highly innovative and novel therapies. Can the genie be put back in the bottle?
Joseph Gulfo suggests, "Congress must pass legislation that defines effectiveness criteria for the FDA to follow" and we will discuss several paradigms that could be implemented in order to facilitate the development and approval of safe and effective products.
If you can join us at http://medgroup.biz/10x, you won't be disappointed in his talk.
++++++++++
Make it a great week.
Joe Hage
Medical Devices Group Leader | | | | |  | | | | | Announcement in Medical Devices Group | | | | | | | |  | | | Joe Hage | | Medical Device Marketing Consultant and Medical Devices Group Leader | | | | | | Raising Early Stage Investments was a panel topic at the Medtech Showcase in January.
You can watch the entire panel at http://medgroup.biz/earlystage for free.
Among the points that caught my ear:
• Joseph Gulfo: When you raise public money, ask (1) What is the maximum percent of a company the investor can own and (2) What is the investor's minimum bite size? These help you determine if you'll get their money.
• Justin Klein, NEA: Raise an amount of capital that funds a substantial risk reduction in your company, that sets up the next phase in the company's development for existing investors, new investors, and your management team.
• Lara Abbaschian, Lightstone Ventures: For every thousand introductions, we will take 300 meetings. From those, we will do diligence on maybe 75 and maybe 4 deals. She invests 10-15MM in an average deal size over the course of an investment; it depends who we are syndicating with, how many additional rounds we think will be necessary.
• Derrick Li, TPP Healthcare: China throws a wrench into how traditional venture capitalists make valuations because the typical Chinese company wants to find a hot commodity and make a ridiculous valuation. But the traditional US venture capitalist brings a lot of non-quantitative assets to the table.
• Gulfo: Having strategic partners and having a concept within the investor's specialty will help your case.
• Abbaschian: A small market with a straightforward trial to run de-risks your investment, making a smaller market more appealing. When you're talking about a big market like Type II diabetes, you increase the investor's risk.
• Klein: It's harder to predict when an investment will mature versus the price for which it will mature. The best outcomes come when you're not trying to sell a company to achieve some number but when you can generate competitive interest from multiple potential buyers. An average investment from us is $30MM and our goal is a $100MM gain, a 4x multiple. Anything less than 3x is not going to fly and our bandwidth is an issue when you consider overseeing the company.
• Abbaschian: We might talk to a company for a year before investing. You don't just want someone to write a check, you want good partners, those who will add value beyond the check.
• Klein: When talking Friends and Family (non-institutional money), do it in the form of a convertible note that gives an appropriate discount to convert into a price per share at your next equity financing and this will avoid a down round.
Klein expects we'll see regulatory loosening and up to 10 IPOs this year, each doing at least $25MM in revenue.
Do any of these points surprise you? Do you have related insights to share?
++++++++++
GULFO at the 10x Medical Device Conference
I'm delighted to welcome Joseph Gulfo back to the 10x Medical Device Conference this year. On May 2, he'll give a talk entitled, "Can FDA be Brought Back to the Future - Returning to Safety and Effectiveness."
Over the past two decades, the FDA has gradually moved away from safety and effectiveness as the criteria upon which approval decisions for devices, drugs, and biologics are made. Fearing adverse outcomes after approval, the FDA has substituted benefit risk for safety and clinical outcomes and clinical benefit for effectiveness.
This has necessarily driven development time and costs higher and higher, and has dissuaded the development of highly innovative and novel therapies. Can the genie be put back in the bottle?
Joseph Gulfo suggests, "Congress must pass legislation that defines effectiveness criteria for the FDA to follow" and we will discuss several paradigms that could be implemented in order to facilitate the development and approval of safe and effective products.
If you can join us at http://medgroup.biz/10x, you won't be disappointed in his talk.
++++++++++
Make it a great week.
Joe Hage
Medical Devices Group Leader | | | | | | | | | | | | | | | Don't want to hear from the manager? Unsubscribe here | | | This email was intended for Steve Scott (Director/CEO | Growth - Funding - Talent Strategist | Venture | CEO Advisor | Speaker). Learn why we included this. | | If you need assistance or have questions, please contact LinkedIn Customer Service. | | | | © 2017 LinkedIn Corporation, 1000 West Maude Avenue, Sunnyvale, CA 94085. LinkedIn and the LinkedIn logo are registered trademarks of LinkedIn. | | | | | | | | | | | | | |   |
No comments:
Post a Comment