What to keep in mind for your exit strategy
A Life Science Ventures Summit hosted by the Kauffman Foundation provided advice on funding strategies for diagnostic startups (0:30:25-0:35:38). Diana Kander of Kander Rigby led a panel with Una Ryan, Tito Serafini, Risa Stack, Zen Chu and Jill Carroll.
Kander asked members of the panel about their experiences with funding and having an exit strategy. Here are some of the points the panel said to keep in mind:
Don't forget the nonprofits - "I think whatever you are proposing - make sure you investigate it very hard for nonprofit use," said Serafini. "There are many foundations that are hunting for technologies to help their cause."
Be open to spin-offs - "Ours was initially thought of for human health … but it has become very clear to us that there are agricultural uses, environmental uses and food safety uses," Ryan said about her company Diagnostics For All. "I think the sensible and probably profitable way to exit some other technology with value to investors is through those kinds of spin-off opportunities."
Plan with your investors - "I think it is really important for the entrepreneurs and the investors to have a very transparent discussion about where we realistically think value is going to be created," said Carroll.
Weekly Wisdom from Kauffman is a regular feature on eMed highlighting helpful advice from the Kauffman Foundation.