Investability Strategy
For more information, reach out to our Innovator Support Lead:
Dr. Julia Berzhanskaya
Dr. Flaim help innovators navigate the following investability considerations:
- Large scalable market – $billions preferred to $millions
- Delaware C-Corp preferred over other structures (S-Corp, LLC, etc.) and states
- Board of Directors: Odd number with outsider control preferred, and Business value preferred over marquee names
- Intellectual Property: Patents or some other barrier to entry extremely important, and Important to be able to obtain worldwide rights (vs. just U.S.)
- Technology License Agreements: Minimal upfront & milestone cash payments, and Low single-digit or back-end royalty percentages preferred
- Important to focus on correct investor sector: Angel vs. Venture Capital vs. Strategic, and Pre-money valuation, raise size, ROI, and time to exit depend on the type of investor
About Steve
Dr. Flaim holds a doctorate in Human Physiology and Pharmacology from the University of California at Davis. He held faculty positions in Medicine and Physiology at the Pennsylvania State University College of Medicine and senior management roles at the Johnson & Johnson Pharmaceutical Research Institute, the Squibb Institute for Medical Research, Alliance Pharmaceutical Corporation, Trega Biosciences, Inc., Galileo Pharmaceuticals, Inc., OncoFluor, Inc., CardioCreate, Inc. and Leading Biosciences. Dr. Flaim is a Fellow of the American College of Cardiology, the American Heart Association, the American College of Clinical Pharmacology, and the Royal Society of Medicine. Dr. Flaim is Chair Emeritus of the Board of Governors for the Tech Coast Angels, Past President and Chair Emeritus of the San Diego Network of Tech Coast Angels and Emeritus Director of the Angel Capital Association. He is a member of the Editorial Board of the Journal of Pharmacology and Experimental Therapeutics, founding member of the Board of Directors and CEO for the John G. Watson Foundation and is active in numerous regional and national scientific organizations. He is a founding member and Technology & Business advisor to the Institute for the Global Entrepreneur at the University of California, San Diego. He is Senior Special Advisor & Investor-in-Residence to the Office of Innovation & Commercialization in the Division of Extramural Research Activities at the National Heart, Lung and Blood Institute of the National Institutes of Health. He is also an Entrepreneur-in-Residence with the Small Business Education & Entrepreneurial Development (SEED) Office in the Office of the Director of the National Institutes of Health.