How Much and From Whom? An Exercise in Seed-Stage Financing

by: Tom Porter

Publication Date: March 29, 2011
Length: 8 pages
Product ID#: 1-429-165

Core Disciplines: Accounting/Finance, Entrepreneurship & Innovation

Partner Collection:

Available Documents

Click on any button below to view the available document.

Don't see the document you need? Don't See the Document You Need?
Make sure you are registered and/or logged in to our site to view product documents. Once registered & approved, faculty, staff, & course aggregators will have access to full inspection copies and teaching notes for any of our materials.

$3.95

Need to make copies?

If you need to make copies, you MUST purchase the corresponding number of permissions, and you must own a single copy of the product.

Electronic Downloads are available immediately after purchase. "Quantity" reflects the number of copies you intend to use. Unauthorized distribution of these files is prohibited pursuant to term of use of this website.

Teaching Note

This product has a teaching note available. Available only to Registered Educators. Please login to view it.

Description

The founders of start-up biotech company Chiral Intermediates have an important decision to make. How much money to raise? When? And from what kinds of funding sources? This exercise walks through the market for chiral intermediates (a material that reduces harmful drug side effects), this new company’s business model, and its quest for seed-stage financing.

Teaching Objectives

After reading and discussing the material, students should:

  • Assess capital needs realistically and raise sufficient funds accordingly.
  • Understand the trade-offs necessary when raising capital.
  • Estimate the optimal time frame for successfully completing fundraising.
  • Prioritize investor prospects based on complementary goals, focus, industry knowledge, and industry experience.