PureTech Ventures in 2011 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In early May 2011, Daphne Zohar, founder and managing partner of Ventures PureTech, life science venture creation company in Boston, Massachusetts, was to review the term sheet she had just received from a venture capital (VC) firms for a company PureTech portfolio. The term sheet will expire in a week, and after negotiating deadline sheet items, PureTech, can probably leave the negotiations with venture capital firm open for another month. PureTech had a unique position in the ecosystem of the life sciences. It aims to address critical unmet medical needs by translating scientific research into commercially viable technology, and in order to do this optimally, was structured as an operating company, which created the start-ups, rather than the typical venture capital fund, which just invested in them. Zohar VC term sheet set out considering the series round of funding for one of the new companies PureTech author. Meanwhile, the team Zohar was also negotiating with several large pharmaceutical companies that are interested in a partnership or acquisition. These discussions were progressing nicely, but will not lead to a transaction within the period specified VC term sheet (or an extra month since then). The current situation has presented her unique challenge. If PureTech adopt "a bird in the hand" of the VC term sheet or turn it off and wait for the negotiations with pharmaceutical companies to play out? The latter route, the proposed capacity is desirable in the short term partnership, but risk that the negotiations fail, in which case PureTech would end up losing time and opportunity in the short term external validation of its portfolio companies. "Hide
by Andrew Hadjiu, Cesar Castro, Sarah Murphy Source: Harvard Business School 22 pages. Publication Date: August 27, 2011. Prod. #: 712419-PDF-ENG