FINS3623 Week 8 Tutorial - FINS3623 | Venture Capital Week...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
FINS3623 | Venture Capital Week 8 | The Exit 2014 Semester 2 | Howie Zhang
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINS3623 Venture Capital BTF Pty Ltd: Facts of the Case BTF is an Australian biotechnological firm involved in the development and sale of a water contamination detection product. Company history: Formed in 1999, by Graham Vesey and Mark Gauci, as a response to the Sydney Water contamination crisis in 1998 Sept, 2001, announced world’s first patented internal quality control product for the testing for microorganism contamination in drinking water Dec, 2001 developed prototype “Bioball” technology, offering advantages in accuracy and reliability over existing techniques 2002, received $2.5M investment from Nanyang Ventures November, 2005 Deloitte Technologies Fast 50 Award 41 st of 50 fastest growing technology companies June 2007, profitable company with $4M in sales, and positioned for exit Future lies in marketing internationally, and expansion of product for use in more lucrative food, pharmaceutical, and clinical testing markets The cast Graham Vesey: Founder, tech specialist Mark Gauci: Founder, laser expert, business perspective John Lee: External Chairman, replacing incapacitated Darrel Brody in 2005 Rory McClouds: CFO, Ex Macquarie Banker, resigned after Gresham debacle Mike Hirshorn: Director, Nanyang Ventures Alan Holton: COO, Nanyang Ventures Chris Howard: Sales Executive Rob Sauer: Lawyer, Dibbs Abbott Stillman, Nanyang investment committee
Image of page 2
FINS3623 Venture Capital BTF Pty Ltd: Facts of the Case Financing History Loan from government, 0.5M from Xcelerator – Angel, Internally generated funds Failed round with Gresham Partners 2001, Nanyang Ventures, $2M tranched according to milestones Down round protection Liquidity preference Drag alone clause Tag-along clause 2005, Nayang Ventures, $1M via rights issue Down round (lower price than previous round) Dilutive to earlier investors Management co-invested Stakes: 40% Nanyang 30% Founder 30% Other
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINS3623 Venture Capital BTF Pty Ltd: Facts of the Case The Exit Approached by several suitors as a potential takeover target 2006, Declined an offer from bioMeriux (BMX) a French global microbiology company to distribute the product Entered into informal talks for a potential takeover by BMX 2007, Lee, Gauci, and Hirshom travelled to Lyons, France to negotiate a term sheet Concerns raised between VC, and founders, tensions surfacing between 2 founders The term sheet BMX sent a group of 9 people to perform due diligence on BMX
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern