Case Study - Fundraising
A VC was looking to make an investment in a Series A funding round of an early stage biotech company. The company had been run as a virtual company and the initial seed funding had funded the science to date.
In order for the VC to make the investment, they needed to have some reassurance that the Series A round would be sufficient for the company to reach the required milestones for a future Series B investment. Furthermore, the company did not have any finance function in place due to its virtual existence. If the VC did make the investment they would require a finance function to be in place.
The team at De Novo Partners were able to leverage their experience of early stage biotech development and build a financial model that was flexible, but also robust, enough for the VC to run the various scenarios and gain confidence that the funding round was sufficient. With the investment secure De Novo was able to deploy its outsourced finance function and cover all the needs of the business from part-time bookkeepers though to a part-time CFO.
The VC was able to rely on the experience and track record of the De Novo Partners team in building and assessing the financial sensitivities surrounding the investment. This financial model went on to become the future basis of how the company reported its finances and management accounts.
Leveraging the flexible financial outsourcing services allowed the company to use the right resource for the right job at the right time – a cost effective and practical solution!