Creating Liquidity for Private Investors

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  Alternative Methods of Reaching Liquidity and Maintaining Valuation
  

  Wednesday, June 26th: 4:00PM- 5:00PM

  Emerging secondary markets have become a media-friendly channel to potentially support investment activity in a recovering economy. Popular in the tech space, this concept is now being introduced to the life science sector. Among the problems facing investors in life sciences is the exit strategy: access to liquidity in a reasonable time, despite long-term revenue projections. In a moribund economy – with EGCs struggling to reach the public markets – valuation for these companies is down, making investment even riskier. Secondary and non-major markets may help inspire investors, as they represent a jumping off point to incubate companies before reaching the public markets. Further, the JOBS Act may define a much broader and more active investor pool, a large percentage of whom will approach investment strategy far differently than traditional long-term institutional holders. Yet despite promise, significant questions remain, concerning both regulatory and operational issues. This panel will explore both the metaphysical ideas and the tangible operations concerning such markets, asking:

  For Companies:

  • Does the emergence of second markets harm or bolster your valuation? What new investor classes may arise?
  • What are the advantages of listing on non-major markets?
  • What are the financial and clinical ‘sweet spots’ for being ‘semi-public’?
  • What advantages exist for going to market earlier, over remaining private? What is sacrificed, and what is gained?

  For Investors:

  • How do secondary markets affect institutional holder investment strategy?
  • Why should you participate in a secondary market?
  • What are the regulatory constraints in participating?
  • Should you support secondary market offerings?
  • What does the move to ‘semi-public’ and non-major publically listed do to your investment?
  • What are the regulatory hurdles and costs associated with reaching these markets?
  • How does valuation change for a company using this strategy?
  • How do companies avoid thinly traded shares?

   

  Faculty:

  Jim Dowd, Founder and Managing Director, 99Funding, he was previously a Senior Managing Director at Bear Stearns from 2003 to 2008. Dowd has worked in New York, London, Tokyo and Hong Kong and has been involved in developing new financial services businesses for over 25 years. Dowd is a CFA charterholder and a CPA.

   

   

   

  Brett Johnson, President and Executive Editor, OneMedPlace, Brett is an experienced entrepreneur, having successfully launched numerous communications-related enterprises. He started with the Minnesota Collaborative a regional network that assists emerging companies and annually hosts one of the country’s largest venture capital conferences, where presenting companies have raised in excess of $2 billion since 1994. He was founder and editor-in-chief of Minnesota Ventures magazine, a regional business publication focusing on small and growing companies. He was also founder and publisher of Law & Politics magazine, a monthly published in Minnesota and Washington and whose SuperLawyers supplement is syndicated in 40 markets. His healthcare experience began in pharmacy, where he worked with the National Community Pharmacists Association NCPA and founded Cornerdrugstore.com. There, as CEO, he built an online network of almost 2,000 local drugstores throughout the U.S. He was also active in the financing and development of Health Integrated, a leading national disease management company.  He received his degree in economics from Harvard University.

  Additional participants to be named in the coming weeks.