Inside The Kore #48

The 48th issue of Inside The Kore is out!

KoreConX continues supporting the KoreSummit Blockchain Summit, with the next session TOMORROW, March 7th!

As a dedicated supporter of education and innovation, we are thrilled to endorse the KoreSummit Blockchain Summit 2024—an epochal gathering uniting thought leaders, visionaries, and institutions to shape the future of Blockchain and its associated technologies.

In alignment with our core vision, we firmly assert that 2024 is a pivotal year for Blockchain, ushering in transformative developments in Crypto, NFTs, and Tokenization.

The KoreSummit Blockchain Summit 2024, presented by Nuvei and KoreChain, stands as a testament to our commitment to advancing education in the dynamic landscape of emerging technologies.

Token Turf Wars

Save the Date: March 7th (TOMORROW!)

11:30 AM EST to 12:30 PM EST

Dive deep into the fusion of Blockchain & AI with industry experts, engaging panel discussions and networking opportunities!

Secure your spot!

Capital Planning in Healthcare: valuation overview

For industry leaders and entrepreneurs charting the course of their company’s future, understanding the financial aspects of business valuations and fundraising is a strategic asset.?

In this article written by Stephen Brock , CEO of Medical Funding Professionals you’ll gain rich insights on these and other important topics in this area, including an overview on valuation for biotech, medtech, pharma, and life science companies.?

Keep reading and learn more.

First insights: the valuation process

So, to begin our journey, let’s talk about finance, which is a key point that impacts the pathway of any company.?

We all know that this is a broad subject, but one of the main issues is the valuation process.?

A practical example: if you own a company with $25 million in revenue or less, a business valuation can cost you anywhere from $0 (provided by a broker for free) to $40,000* (estimates based on current values at the beginning of 2024).?

There are two main types of valuations you will encounter:?

1. Legal valuations: Legal valuations require the valuation expert to meet specific requirements since it will be used to support legal cases. The person performing the valuation must be certified and the methods they use must follow certain legal standards.
2. Fair market valuations: When valuing your company a number of data points are built with a few of them being How much your assets are worth The present value of your future cash flows How much common stock is worth at similar (comparable) companies How much equity your company has in other similar businesses or industries, pre and post-money valuations, what does exit value look like, what does a share price project out to be, what comps for M&A and IPO in similar space you work in has occurred, what VC valuations have been printed.

Attention! Depending on the type of valuation you need and the specifics of your business, the price will fall somewhere in that range.

The importance of capital planning

If you’re setting up a company or leading one in areas like BioTech, MedTech, Life sciences or Pharma, it’s important to keep many issues in mind. Especially when you’re aiming to raise money from investors, working strategically is essential.

Among the key points in this context, are creating the company’s structure in a strategic way that can stand out in the market, increasing the potential for attracting investors.

When raising capital in the private markets, seeking professional advice is crucial, working with trustworthy partners the process can be compliant and less stressful.

Solutions for healthcare industry

If you are looking to fundraise without giving up control of your biotech, medtech, pharma, or life science company, you’ll need to find a path to guide your business journey. Medical Funding Professionals developed the Capital Planning Valuation Strategy? (CPVS?). The method is a custom-prepared funding roadmap and go-to-market strategy, designed to be efficient and straightforward.

One of the main purposes of CPVS is to guide entrepreneurs through each step of the fundraising journey, all with transparency and tailored plans.

Furthermore, the Capital Planning Valuation Strategy? is designed to meet the unique needs of business owners who prioritize streamlined compliance and sustained leadership in their companies. By offering an alternative to the normative procedures of fundraising, it facilitates a more efficient path to capital acquisition.

Want to know more about the CPVS? program? You can access the link and get more information directly from Medical Funding Professional’s specialists.

Diversifying Capital Raising Strategies for Startups

Navigating the VC Winter: Diversifying Capital Raising Strategies for Startups

In the face of a VC winter, startups find themselves at a crucial juncture, requiring innovative approaches to secure funding. We will embark on an exploration of the myriad avenues available for raising capital beyond the traditional venture capital (VC) sphere. We dive into anecdotes of how private companies have creatively accessed funds, emphasizing the importance of not being tethered to a single source of capital. The focus is on the JOBS Act and its provisions, which offer startups a variety of options with potentially more favorable terms than VC funding. We’ll tackle the challenges companies face in this endeavor, from navigating regulatory landscapes to attracting investors. Additionally, we outline seven strategic steps to diversify funding sources, reinforcing the necessity of a well-rounded understanding of all available options. By the end, startups and established companies alike will be equipped with the knowledge to navigate the capital raising process effectively, leveraging regulations to their advantage and working with trusted advisors to ensure success.

The Landscape of Raising Capital

Raising capital for private companies is an art form, with various avenues from VC and angel investments to friends and family, bank loans, government grants, and the provisions under the JOBS Act. Each source has its narrative, shaping the journey of a startup in unique ways. These stories reveal a broader landscape of funding opportunities, illustrating that the path to securing capital is not linear but a web of interconnected routes.

Beyond VC: The JOBS Act and Other Avenues

Entrepreneurs must look beyond VC to fuel their growth, especially in times when VC funding becomes scarce. The JOBS Act emerges as a beacon of hope in such times, offering three distinct regulations (RegCF, RegD 506c, RegA+) that provide startups with options for funding. These options often come with better terms than traditional VC deals, underscoring the importance of a strategic approach that blends various funding sources. This strategy not only mitigates the risk associated with relying on a single source but also broadens the potential investor base.

Navigating Capital-Raising Challenges

The journey of raising capital is fraught with challenges, from understanding the regulatory framework to choosing the right partners for issuance and attracting potential investors. A significant hurdle is the lack of awareness about the diversity of funding sources. Many companies do not realize the breadth of options available to them, limiting their potential to secure the necessary capital. Familiarity with each source’s regulatory roadmap, working with trusted FINRA Broker-Dealers, and leveraging technology partners for issuance are crucial steps in this process.

Understanding Sources of Capital

A comprehensive understanding of all sources of capital is essential. Each source, from VC and bank funding to government grants, friends and family, and the JOBS Act, comes with its own set of advantages and disadvantages. For instance, while VC funding can offer significant capital and mentorship, it often requires giving up a portion of equity and control. On the other hand, JOBS Act funding may provide more favorable terms but requires navigating a regulatory landscape and a totally different approach in attracting investors to your company.

Seven Steps to Raising Capital

1. Educate Yourself on Regulations: Understanding the legal framework is paramount. This knowledge will guide which investors you can target and how.
2. Build a Diverse Funding Strategy: Combine different sources of funding to minimize reliance on any single avenue.
3. Select the Right Partners: Work with trusted advisors, such as FINRA Broker-Dealers and technology partners, who understand your business and the regulatory environment.
4. Prepare a Compelling Pitch: Your pitch should resonate with the specific investors you’re targeting, whether they’re angel investors, VC firms, or the public through a crowdfunding campaign.
5. Leverage Government Grants and Loans: Explore and apply for grants and loans that may be available for your industry or for innovation.
6. Engage Your Network: Friends and family can be an initial source of capital, often willing to invest in your success.
7. Utilize JOBS Act Provisions: Understand and leverage the specific regulations under the JOBS Act that best suit your company’s stage and needs.

In the challenging terrain of capital raising, knowledge and strategy are your best allies.

The regulatory landscape, embodied by the JOBS Act, provides a roadmap for startups and established companies alike to navigate their way to successful funding.

Educating oneself on the myriad sources of capital, understanding the pros and cons of each, and crafting a diversified funding strategy are essential steps.

By working with trusted advisors and carefully selecting funding sources, companies can weather the VC winter and emerge with the capital necessary for growth.

Remember, the journey of raising capital is complex and multifaceted, but with the right approach and resources, it is navigable. There are no shortcuts, but the path is rich with opportunities for those willing to explore beyond the traditional routes.

We hope you have enjoyed to be Inside The Kore!

Stay tuned for more info on the private markets.