Presentation on theme: "VENTURE CAPITAL ANDREW FARQUHARSON. 2 Actively investing money in young companies to catalyze their growth Examples of VC-backed ventures: What Is Venture."— Presentation transcript:
2 Actively investing money in young companies to catalyze their growth Examples of VC-backed ventures: What Is Venture Capital?
3 Entrepreneurship: Hallucination or Vision? If you can’t convince others to share your vision and to start allocating resources toward it, you’re wasting your time. Probably.
4 No one builds a company alone Innovation comes from the collision of ideas It’s hard to win in business. A team of A players will be about 10X as productive as a team of B players Top performers have fun together Marketing and engineering need to integrate People Matter
5 Operon: sold for $150M Made-to-order custom DNA synthesis No VC Funding – raised $200K from angels Not every company needs Venture Capital
6 What VCs Look For Opportunities that offer large returns Markets that are larger than $500M Credible founders Obvious commitment to the venture Competitive advantages Exit horizon makes sense Right corporate structure No surprises in diligence Good chemistry with entrepreneurs
7 Entrepreneurs Mindset: see no problems – only opportunities Unrealistic value expectations Short-term view of financing Do not prioritize investor returns Want to maintain control View the business personally Investors Mindset: focused on IRR and multiples of capital View management, clinical & financing as major risks Considers ownership important for all parties Control by outside board Want early exits Founders and VCs
8 1.Valuation expectations 2.No skin in the game 3.Wrong team/advisors 4.Defensive, poor listeners 5.Overhype 6.Claim no competition 7.Paranoid about confidentiality 8.Fall in love with technology 9.See a milestone “just around the corner” 10.Sell the product, not the investment Entrepreneur’s rose- colored glasses Spectacles worn by a serial investor Top Fundraising Mistakes By Founders
10 Today, billions suffer one or more chronic diseases
11 Pharmacologic Therapy for Epilepsy Treats underlying pathology without sedation Senses and prevents seizure progression Delivers drug over 5 years Current drug market: $16B/year Market 3M patients suffer from Epilepsy in the US Assuming $30,000/device and 100,000 patients/year: US market is about $2B Similar market sizes exist outside of the US Market 3M patients suffer from Epilepsy in the US Assuming $30,000/device and 100,000 patients/year: US market is about $2B Similar market sizes exist outside of the US