Have a long-term plan that is clear for investors
Kim Popovits, CEO of Genomic Health Inc., gave the keynote speech at a Life Science Ventures Summit hosted by the Kauffman Foundation. Popovits shared her personal experiences as examples during her speech, and a major focus was on developing a proper business model to gain the right investments (17:50-21:26).
Demonstrate sustainability - Beyond defining a reimbursement strategy with investors, Popovits explained that sustainability should be demonstrated to strengthen a pitch. "You say, 'Ok, I've demonstrated that it can demonstrate value,' but now everyone is going to ask you, 'Ok, what's next?'" she said. "You can't ever stop. You have got to constantly innovate. You have got to demonstrate that you are thinking about what else you are going to bring behind this."
Set clear expectations - Popovits explained that there are wrong types of investments, and that a clear proposal will be beneficial to getting the right investors that share the same values. "We were very clear about how much we thought we would need, how much runway we would need, and how we thought our revenues would grow over time," said Popovits. Being honest in a pitch will prevent a conflict of interest in future business decisions that can happen with wrong investors. "You get the wrong investors and your business model can fail simply because you don't have the right investors," said Popovits.
Weekly Wisdom from Kauffman is a regular feature on eMed highlighting helpful advice from the Kauffman Foundation.