Likely Exam Questions

Question 1

What are 3 key components to a startup?

Answer 1

Intellectual Property
Money
People

Question 2

What are two fundamental concepts to being an startup, and why?

Answer 2

Law - confidentiality agreements, rent, employment contract

Human relationships - people must have confidence in your ability to be rational, reasonable and engage in conversation

Question 3

What is the Investment Agreement?

Answer 3

Governs relationships between investors and you
Known as Bylaws in US, Articles of Association in UK
Identifies rights of investors and the amount of control they have

Question 4

Who is a cornerstone investor?

Answer 4

This is the first investor to commit to a new project, when no one else will
AKA “Credible Lead”

Question 5

Why is it hard to find a cornerstone investor?

Answer 5

They have to write the investor agreement, do due diligence etc
It is easier to piggyback on someone else’s work

Question 6

What is Due Diligence?

Answer 6

When an investor checks that what you’ve been saying is true

They check contracts, patent etc.

Question 7

How does liquidation preference work?

Answer 7

Last money in, first money out

The most recent series get their money back first

Question 8

What is a limited partnership agreement?

Answer 8

For VC investments
The fund manager pitches to investors investments they could go into
Investors can chose to back the LPA
Investors then delegate decisions to the fund manager
As part of the agreement, investors pay a management fee

Question 9

What is a “carry”?

Answer 9

VC partners get 20% of the profit if a fund is profitable enough to reach set targets

Question 10

How does the degree to which investors are involved in deciding vary?

Answer 10

It varies between VCs and between partnership agreements.

Question 11

In which situations are company shares sold for profit?

Answer 11

• If company exits (is sold)

- If company shares are sold on the stock market

Question 12

What is the Internal Rate of Return used for?

Answer 12

It is used to evaluate the. attractiveness of an investment for the VC

Question 13

What is an IRR?

Answer 13

Essentially the investment’s rate of return without external factors (e.g. inflation)

Question 14

What is the best way for a VC fund manager to learn what to invest into?

Answer 14

Best way to learn is by looking at other companies, follow their stories and histories

Question 15

What is a unique quality that VCs look for in a startup?

Answer 15

A unique capability with a defensible moat
To make a venture return you need a BUSINESS THAT IS RESISTANT TO COMPETITION
YOU NEED A PATENT/UNIQUE ADVANTAGE so that other companies won’t be able to compete with you

Question 16

What is the main quality that a startup should look for in a VC?

Answer 16

VC reputation and portfolio performance for brand benefit

If a good VC invests in you, this adds credibility

Question 17

What does SEIS/EIS stand for?

Answer 17

(Seed) Enterprise Investment Scheme

Question 18

What is SEIS/EIS?

Answer 18

Government tax incentives for private investors to invest in early stage startups

Question 19

What is fundamental in the early stages of a startup, to secure funding?

Answer 19

Being eligible for SEIS/EIS, and pitching it to investors

Question 20

What is an SME?

Answer 20

Small and Medium Enterprise

Question 21

What is Crowdhelix?

Answer 21

It matches SMEs and academics for collaborations on grants

Essentially helps small companies collaborate with academia

Question 22

What is important in a grant application?

Answer 22

To declare how you plan to use their funding

Have a strong funding plan, and plan ahead of time where the money will go

Question 23

How should you deal with your finances if you have a grant?

Answer 23

Ensure you have other forms of financing in place

You need to be able to pay for things as the grant is in arrear > will only reimburse you once you have already paid

Question 24

What affects the grant you can apply for?

Answer 24

Company size
Some grants are only meant for SMEs
There is no lower limit to how small a company can be for grant application

Question 25

What type of market is crowdfunding good for?

Answer 25

The near market, with consumer facing technology e.g. shoes Not so much medtech, as it is complex and harder to understand

Question 26

What is the problem with terms on crowdfunding websites?

Answer 26

There is a limited ability to negotiate terms There is a set term of of agreement that comes from the crowdfunding website, making it less flexible than raising funds on your own.

Question 27

What is the SSA?

Answer 27

Shareholder's Agreement

Question 28

How do you evaluate your company for crowdfunding?

Answer 28

Look at what the market is willing to pay for it | Grant funding is helpful to narrow down your valuation

Question 29

How is getting anger investors vs crowdfunding investors different?

Answer 29

With angel investors: present and explain how much funding you eligible for, and see what they offer. With crowdfunding you have to put your value out there to begin with.

Question 30

What is the most important factor in choosing a VC as investor?

Answer 30

Investor quality | A high quality investor (Tier 1 VC) is correlated to better startup outcome

Question 31

What the components of NHS Imperial College Healthcare Trust

Answer 31

Clinical Trial Unit Trial Sponsor Clinical research facility

Question 32

How does Imperial Founders Choice work?

Answer 32

Allows founders to chose support level that is right for them If you do more work, the university will own a smaller part of the company

Question 33

Why is it important to figure out consumer market?

Answer 33

Figuring it out gives you a bigger runway

Question 34

What is the consumer marker?

Answer 34

Who wants to buy what you are selling

Question 35

What is a CLIA waiver

Answer 35

A waiver that states your product is low complexity and can be used by unskilled users safely out the lab

Question 36

How do you prioritise providers? (How do you filter them?)

Answer 36

Chose specific criteria - Digital maturity - Rate of problem occurrence (who has the biggest problem) - Readiness to engage

Question 37

How is digital maturity important in a provider?

Answer 37

If they are more digitally mature, they might be more ready to engage Equally, a provider with no digital maturity has more space for growth

Question 38

What is the Digital Global Exemplar?

Answer 38

Initiative through which the NHS gave some hospitals money to adopt new technology to see how technology could be incorporated into healthcare, and then be copied by other hospitals,

Question 39

What is the healthcare's response to austerity and an ageing population?

Answer 39

Move to the LOWEST COST MODEL: managing patients in the community

Question 40

Where does AI fit in reimbursement?

Answer 40

AI was not included when they created/ redesigned the system to approach these drivers This means AI is not included in reimbursement systems, so there is no way for those who create it to get paid.

Question 41

Who is Michael Porter?

Answer 41

The man who came up with Value Based Healthcare Reimbursement

Question 42

What will the future of reimbursement be based on?

Answer 42

It will be based on the value created by the product and the ability to demonstrate that value.

Question 43

What is value in healthcare?

Answer 43

Health outcomes that matter to the patients / The cost of delivering the outcome Essentially considers what the best outcome for the patient is, and how much that will cost

Question 44

What is the central goal in healthcare?

Answer 44

The value to the patient (not volume, cost containment etc)

Question 45

What is the driving force between adoption of services, fees for service and design of medical products?

Answer 45

Value Based Health Care

Question 46

What are key components to running your own company?

Answer 46

Investment agreement Law Contracts Humans