How to maximise your chances of securing a Term Sheet: Roundtable Event

Today I was delighted to host a CEO roundtable for CEOs in the health technology sector on: How to maximise your chances of securing a Term Sheet. I look forward to the second event in this series: What the Term Sheet terms mean and “what is market?”, taking place this Thursday (26 May) at 4pm.

Here are my top three take-aways for CEOs of health tech companies looking for a Series A term sheet:

1. Series A companies have not yet survived due diligence and so are rarely fully prepared, despite what they think. Do not wait for the VC’s lawyers to find the skeletons.  There are always skeletons.
2. To maximise your chances, get an expert report/opinion on each of the following i. IP strategy (not just tactics), ii. data as an asset increasing value (not just the world’s dullest compliance topic), and iii. healthcare regs (investors will rely on a professional opinion, for instance, that medical device regulations do not apply, will not rely on a CEO’s view).
3. The biggest obstacles to getting a TS are not technical; they relate to people. Investors need to trust the execs to deliver the plan; the board to adopt proper governance.  Do you have the right people and on the rights terms?  Trust and incentivisation are vital.  And share options are the no1 area that needs to be checked and, usually, then fixed.  Fix them before due diligence. 

Please get in touch if you’d like to watch the recording of today’s session.