Venture Capital

A Secret About Drug Development

People watching pharma companies and the drug development process (this includes investors/VCs, academia and the general public) from the outside will seldom think about this unmet need. The Problem If you’re a scientist, you don’t participate in the upside but you participate a lot in the downside in the case a drug fails to make it past trials and onto the market.. This isn’t exactly a secret (see interview: Vivek Ramaswamy, Roivant Sciences CEO), but is something casual biology enthusiasts or scientists in academia may not appreciate.

A Secret About Drug Development

People watching pharma companies and the drug development process (this includes investors/VCs, academia and the general public) from the outside will seldom think about this unmet need. The Problem If you’re a scientist, you don’t participate in the upside but you participate a lot in the downside in the case a drug fails to make it past trials and onto the market.. This isn’t exactly a secret (see interview: Vivek Ramaswamy, Roivant Sciences CEO), but is something casual biology enthusiasts or scientists in academia may not appreciate.

Due Diligence in the Blockchain Age

original medium article Anybody who lived through the dot-com bubble can probably draw parallels between the late 90s craze and the “ICO craze” of today. It’s the wild wild west all over again. There are other ways to “invest” in blockchain technologies or startups, although ICO is popular these days. Note that an ICO’s intended purpose is to release a token into the world, so that users may now be able to use the platform.

Due diligence without any $1000/hour expert calls

original medium article Say we are helping a private equity client that’s considering buying out a plastic bag company (e.g., something like Poly America) operating in the US market. They want a good estimate for what the demand for plastic bags will be in 5 years. We have 2 weeks to do it. The most naive solution is to look in a market research report for actual estimates. However, something this specific usually can’t be found.

If a bank/VC/institutional whale controls 75% of a cryptocurrency, what’s the point?

The year is 2021. LitChain is a lit startup, soon to debut it’s new coin LitToken (LIT), running off of the Jupithereum (JTH) blockchain. LitChain is planning an ICO and wants to raise as much money as possible, both to help the founders’ early retirement goals and to help build out the LitChain solution. In the early days of 2016 / early 2017, they would have simply just done an ICO and raised $30 million worth of ether (ETH).

Seed Valuation: $2 million

original medium article $2 million valuation. In a pre-revenue, idea-stage, company, this is roughly in the ballpark of what many investors may use. More specifically, this may refer to startups in the early stages of operations, perhaps with an MVP and some traction with customer validation (good feedback from potential customers, +/- contracts signed). At this stage, it is very difficult to project out future revenues/cash flows. However, a good founder will have carefully mapped out their run rate over the next 6 months, 1 year, etc.

Term Sheet, Cap Table, Org Chart ...

original medium article Unfortunately there are very few reliable public resources on understanding org agreements, term sheets, etc. This applies for all sorts of people — founders, VCs and employees. Useful resources for entrepreneurs https://bothsidesofthetable.com/want-to-know-how-vc-s-calculate-valuation-differently-from-founders-8d8cbfc40b78 https://techcrunch.com/2011/07/25/one-book-every-entrepreneur-and-vc-should-own/ https://www.amazon.com/gp/product/1587620685/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1587620685&linkCode=as2&tag=johgansblo-20 https://www.slideshare.net/brendanbaker/anatomy-of-seed-7753824 Employee equity: https://www.slideshare.net/jisilver/equity-201-options-vs-5-22-13 14 points of VC “investibility”: https://medium.com/touchdownvc/14-points-f86bdaca0213 Useful resources for employees Michelle Wetzler’s account of negotiating her salary/equity in her first startup job: https://blog.keen.io/how-i-negotiated-my-startup-compensation-a291a9fb20a8 Chris Dixon’s take: http://cdixon.