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Financing the Company – Part 2: Funding Stages, Valuation, and Funding Tools

  • Craig D. Shimasaki
Chapter

Abstract

In the previous chapter, we discussed the consequences of overvaluing a company at the time of funding. However, company value can decrease from a previous round, even though the company was not overvalued at that time. This situation can occur when a company consumes massive amounts of money without reaching any new value-enhancing milestones. A biotech company’s value is closely tied to its product development progress; therefore, it is important to understand investor expectations at different financing stages. In this chapter, we review the typical funding stages for a biotech company, discuss valuations and how they are calculated, and review typical exit strategies for a company. Practical guidelines are also presented for writing a business plan, and tips are provided on making effective presentations to potential investors.

Keywords

Venture Capital Initial Public Offering Business Plan Venture Capital Investor Reverse Merger 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© American Association of Pharmaceutical Scientists 2009

Authors and Affiliations

  • Craig D. Shimasaki
    • 1
  1. 1.BioSource ConsultingInterGenetics IncorporatedEdmondUSA

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