Likely Exam Questions Flashcards
What are 3 key components to a startup?
Intellectual Property
Money
People
What are two fundamental concepts to being an startup, and why?
Law - confidentiality agreements, rent, employment contract
Human relationships - people must have confidence in your ability to be rational, reasonable and engage in conversation
What is the Investment Agreement?
Governs relationships between investors and you
Known as Bylaws in US, Articles of Association in UK
Identifies rights of investors and the amount of control they have
Who is a cornerstone investor?
This is the first investor to commit to a new project, when no one else will
AKA “Credible Lead”
Why is it hard to find a cornerstone investor?
They have to write the investor agreement, do due diligence etc
It is easier to piggyback on someone else’s work
What is Due Diligence?
When an investor checks that what you’ve been saying is true
They check contracts, patent etc.
How does liquidation preference work?
Last money in, first money out
The most recent series get their money back first
What is a limited partnership agreement?
For VC investments
The fund manager pitches to investors investments they could go into
Investors can chose to back the LPA
Investors then delegate decisions to the fund manager
As part of the agreement, investors pay a management fee
What is a “carry”?
VC partners get 20% of the profit if a fund is profitable enough to reach set targets
How does the degree to which investors are involved in deciding vary?
It varies between VCs and between partnership agreements.
In which situations are company shares sold for profit?
- If company exits (is sold)
- If company shares are sold on the stock market
What is the Internal Rate of Return used for?
It is used to evaluate the. attractiveness of an investment for the VC
What is an IRR?
Essentially the investment’s rate of return without external factors (e.g. inflation)
What is the best way for a VC fund manager to learn what to invest into?
Best way to learn is by looking at other companies, follow their stories and histories
What is a unique quality that VCs look for in a startup?
A unique capability with a defensible moat
To make a venture return you need a BUSINESS THAT IS RESISTANT TO COMPETITION
YOU NEED A PATENT/UNIQUE ADVANTAGE so that other companies won’t be able to compete with you
What is the main quality that a startup should look for in a VC?
VC reputation and portfolio performance for brand benefit
If a good VC invests in you, this adds credibility
What does SEIS/EIS stand for?
(Seed) Enterprise Investment Scheme
What is SEIS/EIS?
Government tax incentives for private investors to invest in early stage startups
What is fundamental in the early stages of a startup, to secure funding?
Being eligible for SEIS/EIS, and pitching it to investors
What is an SME?
Small and Medium Enterprise
What is Crowdhelix?
It matches SMEs and academics for collaborations on grants
Essentially helps small companies collaborate with academia
What is important in a grant application?
To declare how you plan to use their funding
Have a strong funding plan, and plan ahead of time where the money will go
How should you deal with your finances if you have a grant?
Ensure you have other forms of financing in place
You need to be able to pay for things as the grant is in arrear > will only reimburse you once you have already paid
What affects the grant you can apply for?
Company size
Some grants are only meant for SMEs
There is no lower limit to how small a company can be for grant application
What type of market is crowdfunding good for?
The near market, with consumer facing technology
e.g. shoes
Not so much medtech, as it is complex and harder to understand
What is the problem with terms on crowdfunding websites?
There is a limited ability to negotiate terms
There is a set term of of agreement that comes from the crowdfunding website, making it less flexible than raising funds on your own.
What is the SSA?
Shareholder’s Agreement
How do you evaluate your company for crowdfunding?
Look at what the market is willing to pay for it
Grant funding is helpful to narrow down your valuation
How is getting anger investors vs crowdfunding investors different?
With angel investors: present and explain how much funding you eligible for, and see what they offer.
With crowdfunding you have to put your value out there to begin with.
What is the most important factor in choosing a VC as investor?
Investor quality
A high quality investor (Tier 1 VC) is correlated to better startup outcome
What the components of NHS Imperial College Healthcare Trust
Clinical Trial Unit
Trial Sponsor
Clinical research facility
How does Imperial Founders Choice work?
Allows founders to chose support level that is right for them
If you do more work, the university will own a smaller part of the company
Why is it important to figure out consumer market?
Figuring it out gives you a bigger runway
What is the consumer marker?
Who wants to buy what you are selling
What is a CLIA waiver
A waiver that states your product is low complexity and can be used by unskilled users safely out the lab
How do you prioritise providers? (How do you filter them?)
Chose specific criteria
- Digital maturity
- Rate of problem occurrence (who has the biggest problem)
- Readiness to engage
How is digital maturity important in a provider?
If they are more digitally mature, they might be more ready to engage
Equally, a provider with no digital maturity has more space for growth
What is the Digital Global Exemplar?
Initiative through which the NHS gave some hospitals money to adopt new technology to see how technology could be incorporated into healthcare, and then be copied by other hospitals,
What is the healthcare’s response to austerity and an ageing population?
Move to the LOWEST COST MODEL: managing patients in the community
Where does AI fit in reimbursement?
AI was not included when they created/ redesigned the system to approach these drivers
This means AI is not included in reimbursement systems, so there is no way for those who create it to get paid.
Who is Michael Porter?
The man who came up with Value Based Healthcare Reimbursement
What will the future of reimbursement be based on?
It will be based on the value created by the product and the ability to demonstrate that value.
What is value in healthcare?
Health outcomes that matter to the patients
/
The cost of delivering the outcome
Essentially considers what the best outcome for the patient is, and how much that will cost
What is the central goal in healthcare?
The value to the patient (not volume, cost containment etc)
What is the driving force between adoption of services, fees for service and design of medical products?
Value Based Health Care
What are key components to running your own company?
Investment agreement
Law
Contracts
Humans
