Posted by Anonymous on 2010-04-09
I was approached by The Innovation Factory, the incubator arm of Accuitive Medical Ventures. They were very upfront and honest about what they do:
- Take your IP and put it into a Newco
- Take between 60-90% of the equity in the Newco and give you the rest
- Then raise capital for the Newco from established VCs
Their goal is to generate human proof of concept or some other key technical milestone as quickly and inexpensively as they can. They did not hide any of this or try to trick me into signing away our stuff. Very upfront.
For an idea or a company just getting off the ground, like a university professor with a new idea for a medical device, this could be a great way to get involved with highly experienced professionals. Their capital raising connections are excellent and they are trying to expand beyond just Versant and SV as their main VCs.
The deal wasn't for us because we had already raised some seed capital and were beginning to make progress, but for a professor or someone like that with an early stage idea, I would not dismiss it.
If you are worried about control, then you don't get it. For biotechs and medical device companies you lose control as soon as the VCs come in anyway.PRIVATE: Members Only