-Define venture capitalist; your investing approach
-Why the new ventures are a good choice
-Compare the two ventures: similarities & differences
-Reflect on what you have learned and might apply to the NVP
YOU BE THE VC 2.1 COMPANY:IUack Business Idea: Create an online pharmacy that is easier to navigate than traditional pharmacies by (1) syncing all prescriptions so they can he refilled at the same time, [2) delivering by mail exactly what each customer is required to take for 14 days, and (3) sorting each customer's medications into a chain of small plastic envelopes that contain the exact medications that a customer needs to take labeled by day and time of day. Pitch: Apprcimately 10% percent of the American population, or 30 million people, take five or more prestription drugs per day. Mary people in this category visit their pharmacy multiple times per month because their prescriptions aren't synced. Once they get home, they have to sort their medications into daily doses. This task can be difficult for elderly patients, who may be taking different meds at different times of the day. It's also hard for peaple who have hands that shake or whose eyesight is failing, and who find it difficult to sort medications into pillbaxes as a result. Pilleack which is an online pharmacy, has developed a system that provides a solution to these problems. First, the company syncs al of its customers prescriptions so they can be refilled at the same time. Second, the prescriptions are delivered by mail every two weeks in a small, discreet tamper-evident hox. Third, inside the hox is a recyclable plastic dispenser-a pillPack with a large decal on the side displaying images and descriptions of each of the medications inside. Rolled inside each BilPackis a chain of small plastic envelopes, each of which holds the specific prescriptions, r medications, and vitamins that a customer is supposed to take, labeled by day and time of day Each envelope can easily be torn from the chain. No more sorting. No more pill hoxes. No more waiting in line at the pharmacy. PillPack applied design thinking principles (see https /ydesignthinking. iden.com/2p-09 for a description of these principles) to make the ordering and taking of medications as simple and error-free as possible. PillPackstarget market is indiuiduals who take five or more prescription drugs a day.tsas He often delivered medications to his father's customers, and the sight of customers with piles of pill battles and computer spreadsheets taped to refrigerator doors (to help them sort and remember to take their medications on time) convinced him there had to be a better way. After graduating from the Massachusetts College of Pharmacy and Health Sciences in 2012, Parker started the process of creating PillPack PillPack which launched in early 2014, is a full-service pharmacy available in 49 states. Its service is free, and its customers generally pay only their usual co-pay. Tosign up for Pilleack individuals go to Pilleack's website and enter the names of all the medications they are taking and the pharmacy they are currently using. PilPack takes care of the rest. 2-2B Based on the material covered in this chapter, what questions would you ask the firm's founder before making your funding decision? What answers would satisfy you? 2-29. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not? YOU BE THE VC 1.2 COMPANY: Vital Vig Business Idea: Design, manufacture, and sell LED lights that kill bacteria and other organisms in high- risk environments, such as health-care settings, airplanes, gyms, restaurants, office buildings, and public restrooms Pitch: On a daily basis, people spend time in environments that are high-risk for contracting infections. According to the Centers for Disease Control in Atlanta, one in 25 patients in a hospital or health-care setting like a nursing home will contract a health care-associated infection. This is a serious concern. MRSA (methicillin-resistant Staphylococcus aureus), which is a common infection contracted in hospitals, is resistant to antibiotics. In the United States alone, 99,000 deaths per year are associ ated with hospital-acquired infections. There are other high-risk environments that most of us enter frequently such as airplanes, classroom buildings, restaurants, gyms, and public restrooms. For example, MRSA survives in the seat pocket material on airplanes for as long as 168 hours and E. coli lives for up to 96 hours on a rubber armrest Similarly, studies have shown that the grips on machines in fitness centers and gyms often have high counts of bacteria. Airplane cleaning crews and others are aware of the risks, and do what they can to periodically disinfect the most vulnerable surfaces. Still, people contract infections in these settings hich can lead to serious health complications ital Vig has designed, manufactured, and is selling lighting systems that tackle these problems ina new way. Its lights emit a precise spectrum of white light, created with patent pending LED technology, which kills harmful bacteria, with no adverse effects on humans or animals. Hospitals and others already use ultraviolet lights to disinfect surfaces, but UV light is not safe for people to absorb. Vital Vig sells overhead lights that can be retrofitted into existing lighting systems and under cabinet lights. Once installed, Vital Vio's technology is disinfecting every area of a room at all times just at different rates based on distance. Vital Vie's system works by manipulating light in a manner to achieve passive decontamination of specific bacteria, such as MRSA, E. coli, and Salmonella Traditional methods of decontamination, such as manually wiping down a counter with a cleaning product and paper towel, can be effective but are intermittent in their use. The advantage of Vital g's passive approach is that as long as the lights are left on, decontamination occurs on a continuous basis Vital Vig manufactures proprietary LED lights to compete in specific markets and licenses its technology to manufacturers that are competing in other areas 1-29. Based on the material covered in this chapter, what questions would you ask the firm's founders before making your funding decision? What answers would satisfy you? 1-30. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not? YOU BE THE VC 2.1 COMPANY:IUack Business Idea: Create an online pharmacy that is easier to navigate than traditional pharmacies by (1) syncing all prescriptions so they can he refilled at the same time, [2) delivering by mail exactly what each customer is required to take for 14 days, and (3) sorting each customer's medications into a chain of small plastic envelopes that contain the exact medications that a customer needs to take labeled by day and time of day. Pitch: Apprcimately 10% percent of the American population, or 30 million people, take five or more prestription drugs per day. Mary people in this category visit their pharmacy multiple times per month because their prescriptions aren't synced. Once they get home, they have to sort their medications into daily doses. This task can be difficult for elderly patients, who may be taking different meds at different times of the day. It's also hard for peaple who have hands that shake or whose eyesight is failing, and who find it difficult to sort medications into pillbaxes as a result. Pilleack which is an online pharmacy, has developed a system that provides a solution to these problems. First, the company syncs al of its customers prescriptions so they can be refilled at the same time. Second, the prescriptions are delivered by mail every two weeks in a small, discreet tamper-evident hox. Third, inside the hox is a recyclable plastic dispenser-a pillPack with a large decal on the side displaying images and descriptions of each of the medications inside. Rolled inside each BilPackis a chain of small plastic envelopes, each of which holds the specific prescriptions, r medications, and vitamins that a customer is supposed to take, labeled by day and time of day Each envelope can easily be torn from the chain. No more sorting. No more pill hoxes. No more waiting in line at the pharmacy. PillPack applied design thinking principles (see https /ydesignthinking. iden.com/2p-09 for a description of these principles) to make the ordering and taking of medications as simple and error-free as possible. PillPackstarget market is indiuiduals who take five or more prescription drugs a day.tsas He often delivered medications to his father's customers, and the sight of customers with piles of pill battles and computer spreadsheets taped to refrigerator doors (to help them sort and remember to take their medications on time) convinced him there had to be a better way. After graduating from the Massachusetts College of Pharmacy and Health Sciences in 2012, Parker started the process of creating PillPack PillPack which launched in early 2014, is a full-service pharmacy available in 49 states. Its service is free, and its customers generally pay only their usual co-pay. Tosign up for Pilleack individuals go to Pilleack's website and enter the names of all the medications they are taking and the pharmacy they are currently using. PilPack takes care of the rest. 2-2B Based on the material covered in this chapter, what questions would you ask the firm's founder before making your funding decision? What answers would satisfy you? 2-29. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not? YOU BE THE VC 1.2 COMPANY: Vital Vig Business Idea: Design, manufacture, and sell LED lights that kill bacteria and other organisms in high- risk environments, such as health-care settings, airplanes, gyms, restaurants, office buildings, and public restrooms Pitch: On a daily basis, people spend time in environments that are high-risk for contracting infections. According to the Centers for Disease Control in Atlanta, one in 25 patients in a hospital or health-care setting like a nursing home will contract a health care-associated infection. This is a serious concern. MRSA (methicillin-resistant Staphylococcus aureus), which is a common infection contracted in hospitals, is resistant to antibiotics. In the United States alone, 99,000 deaths per year are associ ated with hospital-acquired infections. There are other high-risk environments that most of us enter frequently such as airplanes, classroom buildings, restaurants, gyms, and public restrooms. For example, MRSA survives in the seat pocket material on airplanes for as long as 168 hours and E. coli lives for up to 96 hours on a rubber armrest Similarly, studies have shown that the grips on machines in fitness centers and gyms often have high counts of bacteria. Airplane cleaning crews and others are aware of the risks, and do what they can to periodically disinfect the most vulnerable surfaces. Still, people contract infections in these settings hich can lead to serious health complications ital Vig has designed, manufactured, and is selling lighting systems that tackle these problems ina new way. Its lights emit a precise spectrum of white light, created with patent pending LED technology, which kills harmful bacteria, with no adverse effects on humans or animals. Hospitals and others already use ultraviolet lights to disinfect surfaces, but UV light is not safe for people to absorb. Vital Vig sells overhead lights that can be retrofitted into existing lighting systems and under cabinet lights. Once installed, Vital Vio's technology is disinfecting every area of a room at all times just at different rates based on distance. Vital Vie's system works by manipulating light in a manner to achieve passive decontamination of specific bacteria, such as MRSA, E. coli, and Salmonella Traditional methods of decontamination, such as manually wiping down a counter with a cleaning product and paper towel, can be effective but are intermittent in their use. The advantage of Vital g's passive approach is that as long as the lights are left on, decontamination occurs on a continuous basis Vital Vig manufactures proprietary LED lights to compete in specific markets and licenses its technology to manufacturers that are competing in other areas 1-29. Based on the material covered in this chapter, what questions would you ask the firm's founders before making your funding decision? What answers would satisfy you? 1-30. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not
