How Platforms Can Think Intelligently About Early Deal Structure

  1. KdT Ventures is a seed stage venture firm and thus this article relates to seed stage companies
  2. This is primarily written for “platform” companies and not single asset companies
  3. Every company is unique and based on that uniqueness certain companies may — and some would — be best served ignoring the contents of this article
  1. How strong is StartupX’s balance sheet (i.e. how many months of burn does it have assuming no additional revenue)?
  2. Does the marginal cost of additional R&D expenses borne by Startup X result in a disproportionate increase in downstream royalty (i.e. is BigCo mispricing the risk/reward profile)?

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KdT Ventures

KdT Ventures

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KdT is the standard for early-stage science venture investing. We help founders and their companies re-architect the world at a molecular level.