Tombstones

Background:

Our client is a promising early stage biotech company with candidate products already in the clinic, plenty of promise, and headcount increasing at over 100%. This explosive growth was taxing the CEO who was wearing many hats with little time for reflection and analysis. The challenge was not a Life Science issue, but one of managing growth: Build the management team, raise the next round, and work with current and potential investors.

Recruiting Challenge:

We were engaged by the CEO and the lead investor to recruit a Chairman of the Board. Someone who had built a company from the ground up to successful exit, who knew the pain of early stage, who had walked in the same shoes. And who had the personal bearing to be a mentor, a counselor, not just to second-guess the CEO. Life Science experience was a plus, but was not the point.

The Search:

We identified and recruited a successful technology entrepreneur who had helped found and exited a highly successful technology start-up. Experience as a CFO in a mid-market TSE-listed service company, outstanding interpersonal skills, and well respected in the venture community. No Life Sciences, but knows how to grow an enterprise: build a team, maintain perspective, and don’t confuse the tactics with the strategy. The appeal to the candidate (whom many thought would not be interested) was the excitement of a high potential start-up, the window on a new (to him) field of Life Sciences, and frankly, noblesse oblige, paying the community back.

The Result:

The CEO now has a trusted mentor, whose main contributions occur outside the board room, over coffee or over the phone. The Chairman’s having fun, the CEO has a better perspective, both the CEO and the investors think they have an ally, and both parties are correct.

Recruiting Challenge:

Our client, a university spinout, had developed a novel optical sensor for biotechnology applications including POC diagnostics and research. Seed financed, the company required a President to complete a pending venture round, to commercialize the technology, and to scale the company. Required: An individual who had scaled up manufacturing, participated in financing, experienced hyper-growth, all in the detection technology space. A tall order.

Search Summary:

With no Canadian players in the space we looked to the U.S. using third party sources, client contacts and our own Life Science network at Snelgrove Associates. Though we focused on traditional markets, we found our candidate consulting in a small Midwestern town.

We identified a seasoned manager who had helped scale revenues from $2 million to $50 million, participated in an IPO, deployed a major DNA assay facility, and had a serious Rolodex. Recruiting him required assistance on housing, schools and taxes and some serious handholding. The candidate appeal was the opportunity for the top job, good equity upside, brand name venture funding, and compelling technology.

Lesson Learned:

Cover traditional markets, but don’t overlook non-traditional ones. Canvass your network relentlessly. And understand that identifying the ideal candidate is only part of the job of recruiting that person.

Client:

Our client, a leading biomedical company developing and supplying innovative products for regenerative medicine in the field of skeletal disease and trauma covering clinical and research markets, needed a product manager to direct the sales and marketing of their product in Europe. Recently receiving a CE Mark approval for one of its implant products, the need was to immediately commence sales and marketing activities in Europe.

Candidate Challenge:

Using the fundamentals of product management and developing innovative marketing programs, this individual would be required to carve out market intelligence in Europe while providing the highest quality of technical support to end users.

Recruiting Challenge:

With no North American having the right background, the challenge was to find a European who would be willing to move to Switzerland. It is difficult enough to persuade candidates to move geographically let alone to change cultures. We developed from scratch a network of candidates in Europe using both French and English to seek them out.

Results:

We identified a product manager who knew the European markets, had worked also for a US pharma and had a serious Rolodex. Recruiting her required assistance on moving, housing, and taxes and some serious handholding. The candidate appeal was the opportunity to develop a new territory within the EU delivering a compelling product.

Lesson Learned:

Canvass your network relentlessly. And understand that identifying the ideal candidate is only part of the job of recruiting that person.

Background:

A leading Canadian technology venture fund was considering starting a biotech fund. Because of our healthcare experience, we were consulted to ‘get a read’ on the sector, to identify some of the players and to comment on the opportunity. We introduced our client to several industry people on an information exchange basis, persons who encouraged our client.

Recruiting Challenge:

The challenge was to recruit a well-rounded individual with strong science background, good transaction skills and capital markets savvy. Plus a strong network. And recruit this individual in the fall of 2001, when many good candidates are happy to stick with the devil they know. < /p>

The candidate’s task: Help fund the initiative from prospectus to road show. Identify and finance the target companies, help develop them, establishing alliances and achieving exits. And build a small venture team.

Result:

We identified individuals in big pharma, sell side research, and business development, and in the end attracted an impressive individual with significant hands-on biotech venture experience. A doctorate in Genetics, bench experience at big pharma, followed by investing experience with two major healthcare investors, doing both seed and later stage deals. A great network in both Canada and US. He was attracted by the potential to build and run his own initiative, the equity opportunity, and association with this leading Canadian fund. Time from search commencement to acceptance of offer – seventy-seven days.

Lesson Learned:

When there’s little time for learning curves, identify someone who has been there, who has done it, and who can hit the ground running. No one knows how to do transactions like a successful transactor.

Our Client:

A small enterprise software shop recently funded by a major venture capital fund. They have a unique product that solves a major problem in a specific vertical and had one major reference account when we began the search.

The Challenge:

Identify a President who could take the reins from the founder, now CTO, commercialize the concept by productizing the software and develop significant clients outside the key reference account. Further, establish a corporate culture that takes the firm beyond being a virtual captive supplier to a single customer to that of a free-standing software house.

Recruiting Issue:

Identify and recruit an individual comfortable with large corporate client base, but ready to roll up sleeves, turn over rocks, generate leads, a person who has scaled a sales team in difficult times. Our challenge was to generate candidate interest in an early stage venture with one, albeit prestigious customer, at a time when the candidate pool is not in a risk-taking mode.

Result:

Began the search focussing on the relevant verticals on both sides of the border. Canvassed existing network in software space. We merchandised the modest downside risk, the upside, and the brand name financial backers.

Successful Candidate:

We identified a President and CEO with very strong sales skills at both the strategic and tactical level. One who not only can sense marketing opportunities that are not obvious, but knows how to mobilize resources and use his personal selling skills to seize these opportunities.

Status:

It’s still early, but company is for the first time getting pitch opportunities with major accounts in the vertical, and a Fortune 500 target account. With lots of interest from potential clients in the vertical, company has been transformed from a ten person development shop to a real company with marketing horsepower, and real potential

As venture investing and merchant banking becomes more focused on Science and Technology, there is an growing need for managers with a combination of both science and business skills – a tall order in this country. I wanted to tell you about our recent successful search for such an individual:

Client:

A leading venture fund increasingly focused on early-stage and life science investment opportunities

Challenge:

Recruit a Research Analyst to the team with the science skills to assess technology – “will this concept work” – and the business skills to assess the business model and the management team – “is there a commercial opportunity.” Combining strong science and business skills in one candidate is a particular challenge.

Result:

Using outside research, extensive contacts within the university community and on-line data bases, we identified and attracted a candidate working in a university lab environment, with Masters Degree in a life science, an almost-completed MBA and a strong desire (and aptitude) for investment research and analysis. A rare example of a scientist with a true business head . . . plus good interpersonal skills, and heavy a dose of common sense.

Observations: Investment Research requires more than science, and more than financial skills, but an amalgam of both – an amalgam which is not necessarily found in an office and perhaps wearing a lab coat, not a suit.

If you need help making scientific and technical assessments of investment opportunities, we'd be pleased to discuss our resources and experience with you.