the greatest barrier to success faced by early stage science and technology
based businesses is the lack of experienced business advisors and an
incomplete or non existent business management team. Given our experience
with business development and incubation, we have learned that advisory
boards can be very helpful and effective in identifying and addressing
weaknesses and unrealistic assumptions in entrepreneurs' commercialization
plans, business strategies and business models.
single most important consideration to venture capitalists evaluating
prospective deals is typically the strength of the management team.
They are particularly concerned that the team include an experienced
marketing and sales professional with intimate knowledge of the company's
targeted markets. They want to be certain that there is someone who
can unlock the doors to the company's prospective customers. Entrepreneurs
often face the dilemma of not having the financial resources required
to build a team prior to raising financing. Creating a business advisory
board or engaging consultants can be an interim step providing entrepreneurs
with valuable input without adding unmanageable ongoing payroll costs.
will work with companies to develop an advisory board to address their
specific needs and financial constraints. Based upon our experience
with advisory boards, a recommended configuration would include a marketing
professional, an experienced entrepreneur, an investor, an attorney,
and an accountant. As necessary and appropriate, efforts will be made
to convene advisory boards via conference calls in order to minimize
costs. This service would be priced at an hourly rate based upon the
desired composition. In the case of high potential businesses, a portion
of the compensation could be deferred in return for equity.