Due Diligence
Venture Capital Support
Clinical Development

Need
• Emerging biopharmaceutical company with lead product for cognitive impairment
• Seeking C round financing to support pivotal clinical trial
• Syndicate forming for financing; Venture capital firm evaluating whether or not to finance company

Approach
• Reviewed existing clinical data on compound and rationale for failure on previous clinical study
• Discussed management’s proposed clinical strategy and projected costs for planned study
• Evaluated capabilities of in-house clinical managers and financial health of company

Benefits
• Recommendation to venture capital firm not to participate in financing despite commitment by other leading healthcare venture capital groups
• Company closed its doors months after financing discussions terminated
• Sound investment decision