How can risk minimising strategies influence the firm's value of health care start-ups? [Elektronische Ressource] : the relevance for the decision process of venture capitalists ; a first approach based on the Israeli market / von Aviva Brin

Aviva Garrett

Sujets

• Management

Informations

• Publié par: leuphana_universitat_luneburg
• Publié le: 01 janvier 2007
• Nombre de lectures: 35
• Langue: English

Extrait

How can risk minimising strategies influence the firm’s value of health care Start-Ups?
The relevance for the decision process of Venture Capitalists.
-
A first approach based on the Israeli market.

Vom Fachbereich Wirtschafts- und Sozialwissenschaften der Universität Lüneburg
zur Erlangung des Grades
Doktorin der Wirtschafts- und Sozialwissenschaften (Dr. rer. pol.)

Dissertation

von Aviva Brin
aus Berlin, Deutschland



Universität Lüneburg
Fachbereich Wirtschafts- und Sozialwissenschaften
Institut für Betriebswirtschaftslehre, Entscheidung und Organisation
Prof. Dr. Egbert Kahle
Scharnhorststrasse 1· 21335 Lüneburg · Deutschland

Erstgutachter:
Prof. Dr. Egbert Kahle
Universität Lüneburg
Fachbereich Wirtschafts- und Sozialwissenschaften
Institut für Betriebswirtschaftslehre, Entscheidung und Organisation
Lüneburg, Deutschland

Zweitgutachter:
Prof. Dr. Reinhard Schulte
Universität Lüneburg
Fachbereich Wirtschafts- und Sozialwissenschaften
Lehrstuhl für Gründungsmanagement
Lüneburg, Deutschland

Eingereicht am: 6. Mai 2005
Mündliche Prüfung am: 11. September 2006
Druckjahr: 2007

Universität Lüneburg
Fachbereich Wirtschafts- und Sozialwissenschaften
Institut für Betriebswirtschaftslehre, Entscheidung und Organisation
Prof. Dr. Egbert Kahle
Scharnhorststrasse 1· 21335 Lüneburg · Deutschland Abstract

When screening projects for potential investment placements, Venture Capitalists have to
base their decision on the information provided in the business plan. The aim of this study is
to make VCs aware of the influence of various factors which are discussed in business plans,
such as the management team and risk minimising strategies. In order to do this, the business
plans of four companies which received investment placements were analysed. The analysis
revealed the two main success factors to be industrial experience and a filled product pipeline.
The results also suggested that the business plan in its current form may not cover all the
information needed for an optimal result. However, since this work is only a first approach
further research needs to be carried out. Index
Index
1. Introduction ...................................................................................................................... 4
1.1. Relevance of the theme ................................................................................................... 4
1.2. Context/classification of the theme ................................................................................. 9
1.3. Structure ........................................................................................................................ 14
1.4. Deduction of the determinants of the value of young enterprises................................. 15
1.4.1 Factors generally investigated by VCs.................................................................... 17
1.4.2 Missing Factors....................................................................................................... 22
2. The VC Market............................................................................................................... 25
2.1. Definitions...... 25
2.2. The nature of Venture Capital....................................................................................... 29
2.3. The Venture Capital Market.......................................................................................... 34
3. The Healthcare-Based Biotechnology Market............................................................. 37
3.1. Definition ...................................................................................................................... 37
3.2. Recent market developments ........................................................................................ 40
3.3. The Biotechnology Company 46
3.3.1 Characteristics of Biotechnology Companies ......................................................... 46
3.3.2 The Bio-pharmaceutical product development process .......................................... 48
4. Literature review............................................................................................................ 53
4.1. Management.. 53
4.1.1 Quality and experience of the management team ................................................... 53
4.2. Business Strategy .......................................................................................................... 59
4.2.1 Patents and Product Pipeline.................................................................................. 60
4.2.2 Alliances and cooperation....................................................................................... 69
5. Data Collection ............................................................................................................... 78
6. Evaluation of an Empirical Study................................................................................. 80
6.1. Management .................................................................................................................. 80
6.1.1 Experience, e.g. managerial, financial, logistics .................................................... 80
6.1.2 Industrial knowledge/experience............................................................................. 85
6.1.3 New venture skills.................................................................................................... 87
6.1.4 Complete management team or seeking to complete it ........................................... 87
6.1.5 Level of education ................................................................................................... 88
6.2. Business Strategy .......................................................................................................... 90
6.2.1 Product Pipeline...................................................................................................... 90
1Index
6.2.2 Patents..................................................................................................................... 93
6.2.3 Alliances and co-operations.................................................................................... 94
6.3. Other factors.................................................................................................................. 97
6.4. Evaluation and interpretation of evidence................................................................... 103
6.4.1 Evaluating each company’s business plan............................................................ 103
6.4.2 Interpretation ........................................................................................................ 110
7. Summary and Recommendation................................................................................. 116
8. Appendices .................................................................................................................... 120
8.1. Structure and single components of a Business Plan .................................................. 120
8.2. SWOT Analysis and Strategies in the health care-based industries............................ 127
8.3. Types of Alliances....................................................................................................... 132
8.4. The Israeli Biotechnology Market............................................................................... 135
8.4.1 The Development of the Israeli Biotechnology Market......................................... 138
8.4.2 Sectors and Sales................................................................................................... 142
8.4.3 Government Intervention....................................................................................... 145
8.5. The Israeli Venture Capital Market............................................................................. 148
8.5.1 Industrial growth 148
8.5.2 Equity placements in the life sciences ................................................................... 155
9. Bibliography ................................................................................................................. 159

Index of Tables
Table 1.1: Literature overview of management, alliances, patents, pipeline issues and general
new firm valuation issues................................................................................................. 11
Table 3.1: Overview of biopharmaceutical drug development ................................................ 48
Table 4.1: Management investment criteria according to Weber/Dierkes (2002) ................... 55
Table 6.1: Summary of results ............................................................................................... 110
Table 6.2: Other influences of these factors........................................................................... 111
Table 6.3: Summary of results 112
Table 8.1: The Israeli Life Science Arena in 2004 ................................................................ 140
Table 8.2: Capital raised by investor type 1991 – 2000 ($ millions)........................