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• BM #1

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• Describe the three kinds of assets on a balance sheet

  A. Current assets
  Expected to be converted into cash within one year (short term) - Undeposited checks, accounts receivable 
  
  B. Fixed assets
  Tangible piece of property that a firm owns and uses to generate income. Not expected to be converted into cash within one year - Machinery, vehicles, stocks 
  
  C. Intangible assets
  Not physical assets such as intellectual property (patent, copyright and etc)

• Which financial statements are important for an investor?

  A. Balance SheetProvides insight into the assets and liabilities and you should have at least a couple 
  

  • Financial status of a company on a certain date

  
  B. Income Statement (P&L account)
  Shows revenues and expenses and you should have from recent years and year before 
  

  • Shows the financial performance over a period of time (per day, quarter, year, ...)

  
  C. Cash Flow Statement
  Shows amount of cash entering and leaving the company. Thus, where the money comes from and is spent on 
  

  • Most important for us to know

• What could be a collateral damage of continuous acquisitions for the country where the company is based in?

  By only stripping the assets* you can make money only for the duration of a patent. So, to survive you have to keep buy and acquire companies. For smaller countries this is very bad for the government since they are left with all the people that are left without jobs and etc.   
  
  *Stripping the assets means: "Taking over a company in financial difficulties and selling each of its assets separately at a profit without regard for the company's future"  

• Name the 9 kinds of Intellectual Property Rights (IPR) as layers of protection and mention what they have in common

  IP-rights provide you legal protection for your product. Below a list of Intellectual property rights as layers of protection around the core to extend lifecycle
  

  1. Registered trade mark
  2. Brand
  3. Copyright
  4. Registration (dossier)
  5. Patent
  6. Commercial intangibles
  7. Marketing intangibles
  8. Trade secret
  9. Technical intangibles

  
  IP-rights have in common that it stops others from doing this
  One product can have multiple protections. For instance, Lego includes a trademark for the logo and form and a patent for the functionality of the form.

• Which 5 aspects should be mentioned in your business plan in order to show to VC's that you spent the money wisely and that you limit the risks involved?

  • Novelty (it has to be new, even when incremental. otherwise go to company investor instead of VC)
    
  • Patent protection 
    
  • Reduction to practice (from pill to injection; not really intersting for patients...)
  • Demonstration of utility 
    
  • Identified user group (you have to know who they are, they don't need to be big)
    
  • International opportunity (ensure that there is a volume to make money)
    
  • Experienced management team     
    

• Mention the difference between a patent and a trademark

  • Patents cannot be filed after the knowledge is public while trademarks can be used for years before filing for protection 
    
  • Patents are protection for novel technical inventions while trademarks are protection for the use of signs  
    
  • Patent proved max. 20 years protection while trademark provides 10 years protection and can be extended 
    

• What are the advantages of having 18 months in which your patent filing is not disclosed (=niet bekend)?

  • You can withdraw the patent in case it is not a success or if it harms other patents of yours  
    
  • You can ask for a disclosure fee  
    

• Mention five categories of licensing fee payments in a collaborative R&D agreement (by licensee to licensor)

  • Upfront payment / signing fee (before milestones)
    
  • Milestone payment (before market entry, per milestone) 
    
  • Cost contribution 
    
  • Supply price 
    
  • Royalties (affter market entry)
    

  
  Royalty = payment to an owner for use of property (patent, copyright, resources)

• What will an investor ask about a company's team / management?

  • Has the team worked together before? 
    
  • Do they have relevant experience?
    
  • Do the founders know their weaknesses, and are they ready to correct them? 
    
  • Are the founders clear about their future roles? 
    
  • Is the ownership of the company clear? 
    
  • Has the team agreed on a common goal?     
    

• For who are you writing a businnes plan and what is the goal of a Business plan?

  For who?

  • For investors to get money from them
    
  • For yourself to plan your business. It forces you to critically think about your business, your business model and your team (provides clarity).

  
  Goal business plan
  

  • Clarity of though and purpose
  • Introducing business model
  • Introducing company and team
  • Persuading investors 
  • Highlights risks and challenges
  • Serves as entry point for further discussion