The article emphasizes the importance of understanding the financial aspects of a life sciences and healthcare pitch when seeking investment capital. It highlights that investors typically aim for a market value at exit that is at least 10 times the capital invested. Entrepreneurs need to demonstrate the market opportunity and potential returns to investors by accurately estimating the size of the total addressable market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM). These numbers should support the claim that the market is large enough to justify the required investment capital. Entrepreneurs should also consider the impact of lengthy preclinical and clinical timelines on the cost of capital and rate of return. Additionally, founders should carefully plan their capital requirements at each stage and avoid asking for significantly more capital in subsequent rounds, which can lead to conflicts with existing investors. Clear identification of value-driving milestones and effective communication with investors are crucial. By understanding these financial aspects and presenting a well-researched pitch, entrepreneurs can increase their chances of securing funding.
The Most Important Numbers at the Heart of Every Life Sciences and Healthcare Pitch By Ben Johnson
Comments
0 comments
Please sign in to leave a comment.