Women 4 Technology
Guest Speaker: Catherine Beech OBE
The Difficulties of Fundraising in an Economic Downturn
Q. What positive activities can a management team/company engage in now whilst fund raising is difficult?
1. Have the company prepared to benefit from the economic recovery when it takes place
a. Stay virtual
i. Downside is too small to consummate deals – too risky
ii. Keeps costs down – lower capital requirements
b. Protect assets
i. keep IP/patents alive
ii. tick along mode
c. Assess motives for being in fledgling company space
i. align activities with motives going forward
ii. remember investors are there to make money
Q. Successful Management teams have always been innovative, flexible and responsive to external factors. What should they now be thinking in order to ensure that their company is one of the survivors?
2. Creating options for the company
a. Sell assets
b. Generate revenue platform
c. Mothball business
d. Negotiate milestone based sales
e. Identify trade sale exit and fund to that
Q. There is a shift towards blue chip VC’s actively forming start up companies rather than investing in business plans that they receive. Where is there money at present and what can one do to access it?
3. Sources of finance that are available in this climate Blue chip VCs are not an option at present
a. Grants
b. Charities
c. French wealth tax
d. Angel groups
e. Corporate venturing
f. TSB
g. Scottish enterprise POC and co investment fund
h. Celtic fund
i. Family money e.g. Panorama Group
Q. What is the current attitude of the industry towards the funding crisis
4. Pharma role in this environment
a. Corporate investor
i. want to work alongside angel groups
ii. longer term strategic view
iii. milestone based deals
b. Collaboration partner
i. Platform plays
ii. Therapeutic plays
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