Page 2 of 2

Re: PG and DX Check it Out with a VC

PostPosted: Fri May 05, 2017 5:34 pm
by Nate W.
D.X. wrote:Yes, confirmation that the opportunity dodgy to Nate.

Based on what Nate wrote, I recommend he doesn't touch it even with a 10 foot pole, even if it was yours PG!

Best and good luck Nate you got your advice, walk away and cut all ties.


DX and PG,

I got this idea when I saw the lack of due-diligence by the VCs in the Theranos scandal.

Most VC and investors of biotech companies don't have staff members to evaluate the science behind the technology and, thus, often make bad bets when investing. So what does this mean, hard working scientists in the lab lose their jobs. Personally, I think an experienced scientist can do a better job evaluating these business deals by vetting the science than a MBA type. Most VCs often don't care; they play the odds, I need one Facebook for nine duds. Why not help them improve their odds by vetting the technology and patents?

Large VCs occasionally hire scientists to do this. Almost all VCs are engaged in the financing of small companies and M&A activity. However, they don't have a dealer broker license. All business brokers don't have dealer broker licenses and the same is true for angel investors. Business brokers, VCs, and angel investors that invest in biotechnology based companies need scientific analysts to vet the patents and the technology.

The rules are complicated and few attorneys really know the rules. If one is working for an investment bank, VC, business broker, or angel investor as a scientific analyst, all one needs to satisfy the legal requirements is to become registered as a "finder" with the state securities board. You can get a legal opinion cheaply (~600) from your state securities board. If you don't believe me, you should go ask a VC that does a lot of biotech investments or a local business broker?

I am trying to throw alternative options to help biomedical scientists interested in the business side of biotech and finance. It can be lucrative.