scientific project design regenerative medicine &...
TRANSCRIPT
Colin Sanctuary CEO & Founder QGel SA
Scientific Project Design
Regenerative Medicine & Diagnostics
29 September 2014 15:15 – 17:00
BC 02
Lecture 2
BIO-469 - ET
Ryder Clifford Investor
Serial Entrepreneur Arctic Fox Ventures
The map
• Plot your way
Mountaineering vs. Start-ups?
• You know the mountain is there • You know people have made it to the top
• You can find out what tools people have used before you
• What are the risks? • Do you have the right skills? • Are you prepared physically and mentally? • Be prepared to turn back and start again
People first… then money
• Good people vs. Good relationships • The value of money
– Is every dollar worth the same amount?
! Biotech is risky, but return can be huge
Why is Biotech so risky?
• High cash burn rates • Highly trained, highly qualified people • Long development cycles • Uncertain capital markets
• Takes $1 billion - $12 billion to develop 1 drug!
Biotech is risky
Source: Forbes Feb 2012, Thomson Reuters Fundamentals via FactSet Research Systems,ICRBI
So why do Biotech?
• Successful therapies bring huge returns • Success goes beyond making money for some
• Value of restoring health & saving lives
Stages of financing
Not just about people and money
• A lot to start-ups and being an entrepreneur – Zero to One by Peter Thiel (2014) – The Art of the Start by Guy Kawasaki (2004)
14
Market Analysis Valuation of a new product depends on understanding:
1. The size of the market
2. Market dynamics
• Who pays? Who treats?
• Who manufactures? Who sells?
• Who are the competitors?
15
Market Analysis Valuation of a new product depends on understanding:
“Top down model”
Potential pool of indicated patients
Treatable patients with existing products
New product technology
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Market Analysis Valuation of a new product depends on understanding:
“Top down model”
Potential pool of indicated patients
Treatable patients with existing products
New product technology
17
Market Analysis Valuation of a new product depends on understanding:
“Top down model”
Potential pool of indicated patients
Treatable patients with existing products
New product technology
18
Market Dynamics Is the market growing or shrinking?
19
Market Dynamics How many patients are there and what happens to them?
20
Market Dynamics How many patients are there and what happens to them?
October 2008: Big Company
• Acquiring technology from struggling companies
• Sixty slide presentations,14 pt font
• Extrapolating from historical data • Staying at top-class hotels • Masterminding incentive plans for sales reps • Holding customer meetings at exclusive sites • Reiterating business plan every week
* The Art of the Start –Guy Kawasaki
October 2009: Start-up • Trying to come up with a company name • Struggling to make people understand the
innovation of our technology • Ten slide presentations, 30 pt font • Wishing we had historical data • Sleeping on floor of friend’s friend’s living room • Desperately seeking advice • Rewriting business plan every week • No trophies, no medals, hooray for VK + CTI
* The Art of the Start –Guy Kawasaki
Now what?
* List non-exhaustive and subject to change without notice
Shareholders’ resolutions
Drag-along ESOPs
Tag-along
Subscription rights
License Agreement
Rights of First Refusal
Intellectual Property
Valuation
Waivers
Future IP
Key Hires
Get help!
YOU
Books
Groups Network
Friends
Lawyer, investors MBAs, Professors
other entrepreneurs
CTI, Venture Kick EPFL-MoT, FIT DEWS, Vaud
Intimidating
KNOW YOUR WEAKNESSES • Finance • Legal • Intellectual Property
TAKE THE LEAD • Show you can do it • Communicate • Be the first to raise issues
• Revenue is vanity • Profit is sanity • Cash is reality