week 2 columbia university gsas biot 4180. brief review sources of information – pwc – e&y...

Columbia University GSAS BIOT 4180

Week 2


• Brief review• Sources of information– PWC– E&Y– BIO– Government sites: CIA, IRS


3-6 word description examples

• On-off switches for genes• Outsourced cheap whole genome sequencing• Stem cell picks and shovels• Audience specific– Less toxic targeted chemotherapy– Chemo-antibody conjugates


Elevator Pitches


One minute pitch

• Hook: relevant question in need of a solution• 3-5 word description• Target customer• Target customer’s specific problem• Your solution• Why you are different• Economic teaser

Adapted from MARSDD.com


The Early Business

• Idea• Identity• Entity: the need to choose a business platform– Single proprietor– Partnership– Corporation


• The basis for determining your business form is to limit your personal liability, establish a platform to bring in partners (ie raise money) and to avoid double taxation


Sole Proprietorship

• No division between the founder and the business

• Tax pass through• No limits to liability• Upfront legal costs


Partnership

• No division between the partners on one side and the business on the other

• Tax pass through• No limits to liability• Upfront legal costs


Professional Corporation (PC)

• Attorneys, architects, engineers, accountants, doctors

• Members still have liability for their actions but not for those of their partners (somewhat simplified)

• The corporation pays taxes


Limited Liability Company (LLC)

• Hybrid between partnership and corporation• Not incorporated• Limited liability• Tax pass-through


Corporation (C Corp)

• Limited liability• Double taxation• Oversight and administrative requirements


S Corporation

• Limited liability• Tax pass through• Maximum number of investors• Corporations cannot invest in S Corps


Early Accounting

• Concept of double entry– Cash in or out or receivable or payable– Asset gained or sold

• Match the income or revenue for a period of time with the use of materials to create that revenue– Depreciation– Amortization

• Three financial statements


Financial Statements

• Balance sheet: point in time summary of what is owned, what is owed and what is left over for the owners

• Income statement: revenue generated over a period of time matched against the expenses needed to generate the revenue

• Cash flow statement: reconciliation between revenue / expenses and change in cash balances


Principle of Finance

• Time value of money: a given sum in the future is worth less than the same sum today

• Risk and uncertainty decrease the value of a sum in the future

• There is a methodology for calculating the present value of a future sum

• Concept of discounted cash flow


Capital Structure of a Company

• Debt – Borrowed funds– Fixed repayment– No share in upside or success of company– Preference in liquidation of assets

• Equity– Ownership stake– Different levels: preferred versus common– Variably liquid

• Hybrids: Convertible debt, convertible preferred


Assignment

• Homework assignment will be emailed to you.

week 2 columbia university gsas biot 4180. brief review sources of information – pwc – e&y...

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