Month: September 2022

GLOBAL VIEW OF PHARMA INNOVATION, another data-packed study to think about. http://lnkd.in/PhjSZ9 View in LinkedIn

EXPERTS ARE DIFFERENT FROM MENTORS. All mentors are experts to some degree, but few experts are mentors. An expert has deep and narrow knowledge, but has not had entrepreneurial success or leadership experience in startups: they are superb at solving specific technical questions. Mentors are successful entrepreneurs who also have deep sector knowledge, although usually not as deep as experts. They are excellent guides for CEOs and founders in High Tech startups. When seeking advice, it is sound policy to separate these categories. Experts belong on SABs, Mentors on boards. View in LinkedIn

YOU DON'T KNOW WHAT YOU DON'T KNOW. Sounds obvious? Think of the many BlowHards you know that do not think this way. If you bear this in mind, it will help give you genuine humility and curiosity. A know-it-all never constructs their world with this fundamental viewpoint. Why does it matter? Because you cannot be curious without humility. And genuine curiosity is perhaps one of the greatest assets an innovator can have. View in LinkedIn

IN GENERAL, MOST VCs DON'T MAKE GOOD ENTREPRENEURS, AND MOST ENTREPRENEURS DON'T MAKE GOOD VCs. They are different skill sets, requiring different personalities and different mindsets. A VC is also spread very thinly across many companies, and sees a large range of plans; an entrepreneur is deeply focused on one enterprise. Don't expect your VC to be your mentor, because usually they do not have time. They are really there to see that nothing bad is happening to their investment. Count it a blessing that they remain supportive and stay out of the way, as long as you show progress. View in LinkedIn

BEWARE OF "PAY TO PLAY", a particularly cynical maneuver developed by some US VCs: you managed to get F&F to invest in your seed round. These were people who trusted you and wanted to support your idea. A VC comes in, and says that unless earlier investors come into Series A pro-rata, they will dilute them to nothing. Needless to say, this is a death wish for VCs playing this game. Be sure when you get involved with a VC firm that they do not have a history of this nasty strategy. View in LinkedIn

WHEN A BUSINESS GOES SOUTH the entrepreneur is faced by a dilemma regarding Friends and Family (F&F) investors. A few entrepreneurs feel that these F&F took their risks based on greed and hopes of gain, and that was the name of the game. Other entrepreneurs feel an ethical obligation to make these F&F whole again. When entrepreneurs act ethically, they can go back to the same pool later, and future investors do not discover this nasty secret in their past. Which choice would you make? View in LinkedIn

THIRD PARTY VALIDATION can be golden. This means you have struck a deal with a Cognizant within your field, preferably a big and well-known player. Once you have achieved this, investors understand that you have passed Due Diligence with this established company, and feel much more comfortable championing your cause internally at their investment committee. For all these reasons, getting a deal with a company in your sector can be a strong funding trigger. View in LinkedIn

IF YOU ARE WAITING FOR A CRITICAL EVENT TO HAPPEN, most new investors will also await the news. You are obliged to reveal material pending events, so you cannot hide it from them. Thus you can easily be caught in a double-bind if the critical event is beyond your control. View in LinkedIn

STEERING COMMITTEES ARE VALUABLE FOR OUTSIDE RELATIONSHIPS. Say you form a R&D partnership with a big company who funds your research in return for an Option. A Steering Committee is critical to establish criteria for success, and to determine a decision tree for all possible data outcomes. You need to protect yourself from a bad result leading to a surprise termination of the relationship, an event that can be at worst disasterous, and at best very hard to manage. You need to be jointly managing these expectations and be on the same page at every step. View in LinkedIn

CLASS ACTION LAWSUITS are the scourge of being a public company, and the majority of the time, it is scurrilous lawyers shaking the tree hard to see how much money they can get. These practices cost large sums of money and are a big management distraction. It used to be said that only Russians ate their children. But look closely at this bottom-fishing practice dressed as a White Knight, and I am sure you will arrive at a similar conclusion. Being a publicly traded company is not easy. View in LinkedIn