In early May 2011, Daphne Zohar, founder and managing partner of PureTech Ventures, a life science venture creation business in Boston, MA, was reviewing a term sheet she had just received from a venture capital (VC) firm for one of PureTech's portfolio companies. The term sheet was expected to expire in a week, but through negotiations of term sheet items, PureTech could probably leave the talks with the venture firm open for another month. PureTech had a unique position in the life sciences ecosystem. It aimed to tackle important medical needs by translating scientific innovations into commercially viable technologies, and in order to do that optimally, was structured as an operating business that created start-ups rather than a normal enterprise fund that only invested in them. The VC term sheet Zohar was in view of summarized Series A funding round for one of the newly created firms of PureTech.
Zohar 's team was also in discussions with several large pharmaceutical companies that were interested in partnering or getting the firm. These talks were progressing nicely but wouldn't lead to a trade by the due date set by the VC term sheet (or an additional month from then). She was presented by the current situation with a distinctive challenge. The latter course offered the prospect of a desirable, close-term partnership, but risked the negotiations would fall through, in which case PureTech would wind up losing both time and also the opportunity for close-term external validation of its portfolio company.
PureTech Ventures in 2011 Case Study Solution
PUBLICATION DATE: August 27, 2011 PRODUCT #: 712419-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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