Company Management
The management of a new enterprise will often be the single most critical factor for success. The PSVF team meets with senior management of potential portfolio companies and assesses track records, relevant experience, leadership qualities, strategic and business skills, commitment, and integrity. For later-stage investments, a successful management team should already be in place. Before investing, we conduct extensive site visits during which we also meet with junior scientific and support staff.

Technology Platform
Narrow technologies and single-product opportunities may potentially represent higher rates of investment return but the levels of risk are also generally higher. Our philosophy is to invest in companies with new technologies that provide broad platform opportunities.

Early Indications of Success
PSVF is more likely to take risks on a technology when critical milestones can demonstrate success or failure early in the development process, before substantial capital has been committed.

Availability of Future Financing
Life sciences investments frequently take four to six years to reach a stage when strategic acquisition or public financing is appropriate. Also, the cycles of receptive markets for public stock offerings are unpredictable. Therefore, we assess not only the resources necessary to finance operations, but also require that plans to sustain financing be specific and realistic. This approach requires a solid investor group, board of directors and management team that will be effective in financing ongoing operations.

Projected Return for Investors
The potential reward should be appropriate to the investment cost adjusted for risk. This involves many factors, including profit potential, cost-to-market, sources of financing, investment valuation, exit strategy and, most importantly, plans and capabilities for dealing with potential disappointments.

Agreement by Managing Directors
The investment should fulfill these specific criteria and others that will be considered by the Managing Directors for each situation. All Managing Directors will review each new investment proposal and all follow-on investment proposals. We require unanimous approval of a proposal for an investment to be made.

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