Latest Posts

The Bay of Thermi Blog is written by Ben McClure, Founder and Director of Bay of Thermi Limited. It is an open forum for everything and anything to do with technology startups – intellectual property, creation and launch, business plans and financial models, valuation and raising capital, growth and much more.

Know Your Competition

If you ask an investor what the weakest part of business plans they read, many will say it is related to competition and the business’ competitive advantage. If you want to lose investors’ trust, tell them that your technology has no competition, or noting can do anything like what our technology can do. As a matter of fact, investors get nervous if there is no competition. Every idea, every technology has competition. Of course, competitors can be a big threat to your business and can frustrate your efforts to grow. But competition offer investors validation that a market for your product actually exists. If the market is still in its infancy, then the presence of competitors demonstrat ...

Analysing Biotech Companies

Bay of Thermi's Ben McClure highlight some non-numerical items to consider when analyzing biotech companies.    Analyzing Biotech Companies The science and business of biotechnology is complex and uncertain, and trying to figure out biotech companies' prospects for success no easy task.Putting numbers on a biotech firm – while not entirely impossible – can be awfully tricky. So, when sizing up a biotech company's strategic and financial health, analysis often relies heavily on qualitative analysis rather than quantitative, financial me ...

Valuing Your Startup

Valuation is never straightforward. But Ben McClure of Bay of Thermi offers a few approaches. Read the Investopedia article her: Valuing Your Startup ...

Get Your IP Investor-Ready

Ben McClure of Bay of Thermi explains some business plan best practices and how to get your plan investor-ready. Read the article published in Intellectual Property Magazine, June 2011. Get Your IP Investor-Ready ...

Valuing Biotech with DCF

How do you put a price tag on a biotech company that is years away from producing sales? Ben McClure shows how to create biotech discounted cash flow valuation model. Read the article at Investopedia.com Using Discounted Cash Flow to Value Biotech Companies ...

How VCs Make Their Choices

How Venture Capitalists Make Their Investment Choices Bay of Thermi director, Ben McClure, looks at what prompts venture capital investors to open their cheque books for early stage companies. Read the article here at Investopedia.com ...

Gotta Problem?

The best ideas and innovations aren’t always winners, and winning ideas aren’t always the most technically exciting. So, what makes a business idea compelling for investors? Investors look for ideas that solve real, burning problems. So, your business plan should start off with a clear explanation of the problem that your business will solve for customers. For a new idea to be commercially viable, someone in the market must have a serious problem for which the idea offers a compelling solution. “Serious” means that it is a problem that is not currently being solved; or if it is being solved, it’s not being solved effectively. Business problems are exciting for investors when they come attached w ...

Training Modules - Intellectual Property Valuation & Financing

Check out these ip4inno training modules for valuing and financing intellectual property. Co-authored by Bay of Thermi director Ben McClure, the modules were developed under ip4inno II and funded by the European Commission and the European Patent Office. Click on the links for PDF presentations. Valuing IP  Module_4D_1val_EN (3) Financing IP Module_4D_2fin_EN (2) ...

Intellectual Property Magazine: VCs and Biotech Funding

Intellectual Property Magazine asked Bay of Thermi's Ben McClure to shed some light on how VC investors size up high risk biotech companies and how they value IP. Read the full February 2011 IP Magazine article here: IP Monthly - VC Investment & Biotech Funding ...

What’s Your Startup Worth?

Lately, I’ve been speaking with startup founders who are asking me how much of their companies they should be handing over to investors in exchange for early-stage capital. The simple answer: as little as possible. But, seriously, determining the value of a technology startup is not simple. For mature businesses, with steady revenues and earnings, normally it’s just a matter of valuing them as a multiple of their earnings, say ten times. But it's a lot harder to value an early-stage venture that may be years away from bringing in revenues. Often, start-ups are little more than a business plan and their founders’ hopes and dreams. As a consequence, nothing creates a bigger gulf between founders an ...

Is Your Startup Fundable?

Having a hard time raising money for your startup. Consider whether your business is really fundable. Bay of Thermi helps early stage companies plan and prepare for raising capital. An important part of this work involves assessing whether the business is ready for funding. Experience shows that there is a big difference between a feasible business idea and a fundable business idea. Lots of businesses are feasible, but many are not fundable. If you are having a hard time raising capital for your company, it may be because it’s not ready for funding. Consider some of the reasons why angel and venture capital investors might be reluctant to open up their chequebooks for startups. No business pl ...

To Raise Money for Your Startup, You Really Do Need a Business Plan

I meet with startup founders who think they can get by without a business plan. All too often I hear them say that they have their whole business plan clearly organized in their minds. “Just put me in front of some investors,” they say, “and they will be fighting to invest in my idea”. Or even worse: “My technology is so good, that investing in it is a no brainer. There’s no need to produce a business plan document.” They are making a big mistake. Almost every investor I know expects a business plan before they seriously consider putting money into a startup. After all, the business plan communicates what your business idea will become and why it will be a hit for investors. It will show that y ...

  • 2012 (1)