New Venture Process and Services

Validation and Viability Testing

 A professional and comprehensive assessment to validate the commercial viability of the proposed new venture.

• Inventor interview
• Triage of new venture opportunity
• SWOT analysis
• Evaluation of key business opportunity
• EIR review
• External (EAC) assessment

Inventor Interview

Friendly interrogation of new ventures concepts with the founding inventor to probe the strengths and weakness of a startup opportunity, to better prepare for the newco building process.

Inventor Consult and Triage

This consultation allows the inventor and the NV Team to work together to better understand the viability of the new venture opportunity. The NV Team works with the inventor to answer a short series of survey questions in each of four focus areas: technology, team, market, and money.

Evaluate Key Business Opportunity

The NV Team next initiates an internal due diligence process to gain additional insights into the focus areas covered above

Entrepreneur-in-Residence (EIR) Review

EIRs volunteer with CTTC to work with the NV Team and Vanderbilt entrepreneurs to evaluate the viability of potential Vanderbilt-affiliated startup companies.

External Assessments

The NV Team frequently engages external subject matter experts, investors, and/or entrepreneurs in attempts to answer any outstanding questions and close out the validation and viability testing phase.

Staging and Development

Formation of a roadmap for the new venture, including development of a business model and presentation materials.

• Develop the Business Roadmap
• Refine the financial model
• Refine the business plan
• Modify pitch decks for multiple uses

Form the Business Roadmap

The business roadmap builds off information gathered in Validation and Viability Testing to define the core elements of the business model and establish a foundation for the business plan.

Build the Financial Model

Typically, investors will want to see the company’s expected financial performance over the next three to five years. Each year’s projections should include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets.

Refine the Business Plan

A business plan should be a work in progress that evolves as new information and perspectives are acquired. Entrepreneurs must know everything about their products or services in order to persuade someone to invest in their company. As the elements of the business plan take shape through iterations, the information acquired will be used to develop the preliminary pitch deck.

Develop the Business Plan & Pitch Deck

Aiding in the development and optimization of presentation materials for venture capitalists, matching the strengths of the new ventures with the investment strategies of the particular investors.

Commercialization

Evaluation and protection of IP portfolio available to the new venture, and in-licensing such rights.

• IP protection and patenting
• Proof of concept and prototyping
• Development of diligence plans
• Technology licensing

IP Protection

When Vanderbilt employees disclose new inventions, the disclosure is assigned to a CTTC licensing officer for review and processing. The licensing officer assesses patentability and market potential of the invention, then coordinates with the inventors and NV Team to ensure that the scope of IP protection is understood, and appropriate action is taken to protect the invention.

Proof of Concept and Prototyping

The NV Team works with each inventor to secure resources for proof of concept and prototyping activities. Some of these advancements may be accomplished in the lab, but many risk-mitigation steps require engagement with external developers with unique translational research and manufacturing expertise.

Development of Diligence Plans

The CTTC licensing officer partners with the NV Team and inventors to map out the specific diligence steps that the new venture must take to ensure that the technology and the new business are advancing toward commercial success.

Technology Licensing

For technologies created in the course of Vanderbilt research, the new venture will need to procure access and rights to the technology through a license agreement with Vanderbilt, managed by CTTC. A license is essentially a grant of rights, usually exclusive, to a technology in exchange for various payments and promises.

Formation and Governance

Evaluation and protection of IP portfolio available to the new venture, and in-licensing such rights.

• Company formation
• Development of corporate documents
• Registration of equity holdings
• Board recruiting

Incorporation

The appropriate time to form a company will vary depending on a number of factors. The NV Team will help inventors decide when the timing is right.

Developing Corporate Documents

There are several fundamental corporate documents developed as part of company formation that address ownership, organizational structure, and the rules for management.

Registration of equity holdings

Codifying Vanderbilt’s equity position in new ventures it helps to launch and tracking valuations and growth of the equity portfolio.

Board Recruiting

A strong board of directors and a diverse advisory board are vital to keeping a new venture on track, utilizing resources in the most efficient manner, and setting objectives for management. The NV Team can help identify valuable board candidates and corporate mentors for Vanderbilt-affiliated new ventures.

Capitalization and Investments

Preparing new ventures to engage professional investors and coordination presentations for financing; advising on investor term sheet negotiation.

• Pitch deck refinement
• VC pitch preparation
• Investor engagement
• Investment term sheet negotiations

Pitch Deck Refinement

Several versions of pitch decks will likely be required to gain and hold the attention of investors. Each version will be tailored for specific audiences and specific circumstances.

Pitch Preparation and Presentation

The NV Team will drill with entrepreneurs to ensure that their pitches are concise, compelling, fluent, and on time.

Investor Engagement

Using its network of regional and national investors, the NV Team can help find the right company-investor fit for Vanderbilt-affiliated startups. A new venture needs not only investment capital, but investors with appropriate industry backgrounds and connections.

Investment Term Sheet Negotiations

The NV Team has considerable experience negotiating investor term sheets and will provide guidance and input with respect to developing investor terms, evaluating investment offers, preparing counterproposals, and helping to arrive at reasonable terms that protect current investors without negatively impacting future fundraising efforts.