Like I mentioned before, Doc H and I have started a new biotech venture. As noted here, this is not our first trip around the start-up block. After our first foray, we are no longer green. Instead, thanks to the barrage of incomprehensible actions by attorneys, CEOs, and board members (who all act under the strings of VCs), we look at our future venture with jaded eyes.
If you happen to be one of my readers in the medical field, or the spouse of a physician, with an entrepreneurial and innovative spirit like Doc H, listen closely... Beware of the Venture Capitalist.
Dealing with VCs is a slippery slope. When you have a viable, solid biotech technology, business plan, and prototype, VCs will fund and you will feel ecstatic! The VCs will be excited as well, but from a completely different standpoint. The main difference? MOTIVATION.
MOTIVATION- Don't ever lose sight of this when dealing with VCs.
VCs with will never hold the same ideals as the inventive creators who birthed the technology. Here's what I know: Doctors take an oath which clearly outlines their awesome responsibility to their patients and their health. VCs do not. They take no oath. They are business people. Their sole responsibility is to create a profitable portfolio for their investors. To put it simply and crudely, their sole responsibility is to make as much money off your invention as possible. It is pendulum opposition at its finest; the inventors working from the idealist point of view to further modern medicine, and at the opposite end, the VCs who have opened their coffers, taken control, and sit back and wait for the most opportune time for them to exit.
The quick summary... while doctors and inventors are striving for the better good, the VCs are striving to take their bank account balances to a whole new level.
In my mind, VC = Vulture with Cash.
Yet, here's the rub. We need them and they need us. No one is moving one step closer towards their ultimate goal with out the other.
Doc H and I will personally finance this venture for as long as we can. No attorneys, no board members, no VCs, for as long as possible. It is the only way we can remain in control and hold on to a larger piece of the pie.
Ultimately, the time will present itself and when it does, we will go knocking on the doors of the VCs. We will present, we will demonstrate, we will wine and dine...yes, it will be a whole dog and pony show. We will ask for funding.
Am I concerned of being denied? No. With one successful start-up venture behind him (which more than just lined those VCs' coffers- they have cushy padding now) and despite the questionable ethics and business practices used to augment the profitability of their preferred stock over that of the common stock (which is held by employees - the people who entrusted Doc H and agreed to work for him for stock options), I highly doubt they would turn away an established, successful patent holder. The numbers of Doc H's venture speak for themselves.
I hope we can fund this venture for a long, long time.