Creating a Liquidity Event for a Venture-Backed Startup
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Situation. A novel biotechnology startup in the process of establishing its operations faced a unique situation when it was issued a potentially high-value drug patent that was peripheral to its business model. C3 was engaged to evaluate whether to sell the patent/enterprise to an interested buyer.
Actions. Assessed the alternative strategies of patent sale vs. enterprise sale. Evaluated initial offer and conducted multi-round series of negotiations. Assisted in restructuring of license/sub-license agreements to facilitate transaction. Negotiated personal contracts of founders with the potential buyer. Carried out all administrative actions required for transaction closing.
Results. Successful sale for a return to the investors of 165x total investment. Long-term consulting contracts and stock options for the founders.
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