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Creating a set of "stepping stones:
Step 5 Milestone 12
Milestone 13
Milestone 14
Step 4 Milestone 9
Milestone 10
Milestone 11
Step 3 Milestone 7
Milestone 8
Step 2 Milestone 4
Milestone 5
Milestone 6
Step 1 Milestone 1
Milestone 2
Milestone 3
Main Path and Alternatives:
Step 5.1
Step 2.2
Step 4 Step 5.2
Step 2
Step 1
Worst Case Szenario:
proceed
accelerate
Yes
partnering
Step 2
Step 1 reached
?
Abandon the project
No
Restructuring the
company
"bridging" to step 1
Large and Small Companies:
innovation incremental
breakthrough product and
manufacturing distribution
products and service
services improvement
cumulative start-
generated up company
cash
($)
0
time (years)
total
investment start-up
required biotech company
(ultimately sold)
total
investment
required
Capital Assets
Product development costs
Leadership and administration
Working capital (Working Capital =
Current Assets Current Liabilities)
Sales ramp-up financing
Evidence to include in a business plan:
1. Fast growth
2. High gross margins
3. Low capital intensity
How venture capitalists value early-stage
companies
10 to 20 6 to 8 3 to 5
times times times
Distribution Benefit