Challenges of Growth

1

• Challenges of Growth
• Presented by Yad Garcha,
• Senior Vice President
• GrowthWorks Capital Ltd.
• BC Biotech Financing Forum
• April 17, 2002

Venture Capital. Experience. Connections.
2
Pre Start-Up Issues

• Technology ownership
• IP?
• Full time or part time founders
• Co-founders stake
• Seed valuation
• Location
• Amount to raise
• Milestones with the first round

3
First Year

• First Hire
• Board of Directors or advisors
• Founder issues
• Business plan
• File patents
• Managing burn and planning for the next round.

4
First Round (A round?)

• Champion (lead)
• Intermediary or direct
• Valuation and amount
• Number of participants (VC vs. Retail)
• Amount
• Milestones before the next round
• Board of Directors (size, composition)

5
Growth Phase

• Source of next round (amount, valuation,
  players)
• Hire in or grow your own talent?
• Canadian or foreign talent
• CFO or COO first
• Founders growing or getting in the way?
• Tough decisions to let go of dead wood.

6
Next Phase

• New CEO and new Team?
• Restructure Board to match business plan
• Third party opinion on IP strategy.
• Spell out the indication and the label.
• Introspection about capacity of self and
  organization.