Investor Financing
Informing Investor Valuations

As a Platform member, get access to the whole picture — the picture investors need to value your company correctly.

As transactions are sensitive strategic processes, names of companies and executives in all MotionHall case studies are anonymized.

Rahm is CEO of a small virtual biotech which we’ll call Cactus Biotech. His pipeline includes a set of pre-clinical assets, as well as a novel Phase 2 oncology candidate. Rather than trading out value early, Rahm is interested in venture financing to develop this lead asset to Phase 3. Rahm could partner the cancer asset now, but further development will bring his company the best return.

Get Clarity on the Business Development Futures for R&D-Stage IP

Rahm will need to clearly communicate a viable business development strategy to potential investors if he is to get the best valuation. He uses his access to the MotionHall Platform to complete his evaluation of partnerships for the Phase 2 candidate.

Rahm also uses the Platform to look at pre-clinical asset futures, and survey the M&A landscape for his company. Not that he wants to sell, he wants to see the entire pipeline through clinical development, but Rahm knows that for a venture firm to evaluate his company as an investment they’ll want to consider both the prospective licensing and M&A futures for the company.

Deliver the Right Information to Get the Right Valuation

In investor meetings Rahm can speak with the expertise of his years in the field:

  • • Rahm talks about the diligent science behind his asset.
  • • He shows his deep understanding of the commercial market and its size.
  • • He describes the significance his asset could have to cancer patients everywhere.

Analysis from the Platform gives Rahm the ability to speak confidently to markets of prospective licensing and M&A buyers, including deal comparables and competitive considerations. He presents a thoughtful out-licensing approach to the venture investors, specifically outlining a Phase 3 licensing or M&A scenario with:

  • • The likely buyers.
  • • The possible deal parameters.
  • • A calculated plan to drive auction value.

The investors have little to say here, but that’s fine. Rahm understands his refined business development scenarios have allowed him to control the value conversation rather than leaving it up to the venture investors. If Rahm didn’t communicate this value, the venture investment firms might simply pull in personal connections to spot-check for interest at companies in their network.

Take a Proactive Approach to Guiding Company Value Conversations

By using MotionHall to model the business futures for his assets, decisioning on them, and bringing this detailed picture to investors, Rahm has improved the confidence his investors have in him and improved the valuation of his company. It was a small but crucial component of Rahm’s process to get his Phase 2 candidate to a Phase 3 finish.

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