starts with an idea and talented entrepreneurs that can serve as the foundation for building a large and valuable company in the biomedical technology or life science sectors. If you are starting a company based on such an idea, the best way to engage us is through an individual or group of individuals that are part of our network of relationships. If you do not have a direct connection to one of the Managing Directors or Partners at Prospect, your introduction might be facilitated by other entrepreneurs that we have backed, industry leaders with whom we interact, service providers (e.g. lawyers and executive recruiters) that we employ, or by other mutual contacts. If no such contacts exist, you are welcome to e-mail your executive summary to busplans @ prospectventures.com or to send a hard copy to the address below:

 
435 Tasso Street, Suite 200
Palo Alto, CA 94301

The executive summary should be three to five pages and should include:

• Brief description of the product or service

• Market need, market size and competitive landscape

• Background of key management

• Intellectual property position

• 3-5 year financial projections

• Capital requirements

• Current capitalization

All information will be treated with discretion and confidentiality.

The initial consideration of an executive summary submission usually takes 2-3 weeks. If the Managing Directors and Partners believe that the plan has an exceptional entrepreneur capable of building a large company using proprietary technology to address a significant market, we will request more information and a meeting with key members of management.

During the next phase of our evaluation, we will explore in detail management's vision for building a company, as well as conducting a detailed market analysis and technical review. We will expend considerable effort on performing broad and deep references on key members of the team, and we will make at least one visit to the company. During this process, management will have contact with all of the Managing Directors and Partners at Prospect and with industry experts, potential customers and outside consultants that we engage as valued added participants in the diligence process. During this phase of our diligence, we are also pleased to provide entrepreneurs with contact information for entrepreneurs and executives that we have backed in prior investments so that you may do references on us and on our track record as partners in building enterprises.

If Prospect becomes an investor in your company, we most often take a seat on the Board of Directors. As an active member of the Board, we assist the executive team wherever and whenever help is asked for and needed. These areas typically include management recruiting, strategy development, corporate partnering, technology/product development and financing strategies. Perhaps most importantly, as members of the Board, we are well positioned to introduce our portfolio companies to our extensive resources in the entrepreneurial, corporate and service communities.

We hope this addresses some of the questions you might have.