100 Millionen Dollar Kapital hätten mich fast den Job gekostet

0:00Unternehmer/Gast I'm not a paid spokesperson, but I'm going to speak for all the entrepreneurs. You put together an amazing group here, not just of entrepreneurs that you curated, but the acquisition team. We've learned so much. So, thank you for that. >> Thank you. >> So, my company is BioXcelerator. We're one of the top stem cell companies in the world. Right now, that's what we're known for. We're actually a biotech platform, so we have a lot more behind the scenes. So, what we do right now, what we sell for revenue is our services, our health care services in stem cell and exosome.

0:31We're 24 million. We want to be at 250. >> Okay. >> Actually, 500, but I was sandbagging for this. But, there's a lot of things stopping us. One of them I'm afraid that has been uncovered is our level of expertise, possibly including me. I think we're doing better than anybody in the world. I'm biased, obviously, but we're kind of pioneering an industry, so there's no real great blueprint. That's my excuse.

0:58But, I've I've raised capital for both for this business and my previous real estate career, but it's been in small chunks of like 5 million, 10 million, 15 million. >> Like formal rounds or like friends and family? >> Both. Like so, for this this company, I seeded it angel seed and then series A, we're on a series B right now. That's about my level of expertise. But, when we really need to get out to scale, we're going to have to get a lot more money and I'm noticing and starting to developing these relationships that it's a much different conversation when you start asking for 100 million.

1:29>> Which is 5 or 10. >> Yeah. >> So, I guess my question gets down to what are what would be a good suggestion knowing that I don't want to leave the company and get kicked out yet. >> Well, how much equity do you have left or like do you have stuff? >> 65%. >> Okay, so you still have a good chunk. Okay. And then 35% is all investors or are there team? >> I have some yeah, team members also. >> Okay. >> Key key players, yeah. Chief medical officer and stuff like that.

1:55>> So, is the issue that you've had the conversations and people are saying no to the higher valuation in order for you to get the capital you need? >> Yeah, a little bit of that because really I were we have a lot of technology that hasn't it's been proven in our clinic and it's ready to you know, basically scale if I could get the money for the manufacturing to build the extra laboratories and and so I don't want the valuation to be squeezed so much that it squeezes me right out of a power position.

2:22So yeah, that's that's kind of the issue. >> Do do the existing investors who have come in so far do they have cuz like you can absolutely maintain control and still be a minority shareholder. Like Zuck has 100 to one voting rights and so if there's a business that requires more capital but they still trust you but understand that it requires more capital to get to where you want to go then it you could still maintain the control you want as long as they buy you.

2:50Alex >> Yeah, the people we have right now are like that. You know, we have some professional athletes and celebrities a lot of people that were like really good patients of ours but they're not yeah, and then they wrote us checks but they're not really big funding partners. >> Um so fun I mean this is just a sale. It's all it is and so I would I would encourage you to probably think less about this is going to be really less about the facts and more about the story.

3:17Alex Now facts do make great for great stories but the question that we have to answer is like what would you need to see in order to believe? And so if I'm talking to like so when we're thinking it like if we're about to let's say we want to raise a round in 2026, right? I'm having these conversations now with 10 times the amount of potential kind of like investment partners to understand what their what each of them needs to believe or needs to see in order to feel confident to make the bet and once I have that kind of big list then I can narrow that down to like okay, this guy's unrealistic. This guy's unrealistic. This we can do and it's going to cost us this much. And so sometimes it's a tiny raise to just get this one need to believe to be believed and then you can ladder into this other thing. And so I I think about it as like I want to go find my customers, find out what they want, and then build the thing they want. Now, to be clear, that's not like trying to derail the vision. Like you don't want to build another person's company, but it's typically they're all going to just try to pay down risk.

4:18That's all they're paying down, right? Or want you to pay down for them. Um so, from a control perspective, that's super manageable. If you did it today, it's like maybe you lose half the equity that you have, but now you have a company that you raise How much cash do you need? >> [clears throat] >> Uh to finish this round, 5 million, but if we want to go out and raise 126 27. >> Okay. And what what And you want to raise that at what? A billion at >> No, half a mill half a bill. >> Okay. 500 million is what you want to raise it at. So, you want to you want to sell 20% and get 100 million in cash.

4:47>> Yeah. >> Okay. Um They're They're They They have to see basically what risk are the people who bought in at 20 or what's your current valuation the last round you raised? >> Uh 50 million. >> Okay. So, that's a 10x difference, right, in valuation. What risk did the 50 million dollar round take on that they are now rewarded for with the 500 million dollar round?

5:15That's a question. I don't >> Uh I mean, in my mind, we've de-risked this more than any other platform on the planet, but there's still a lot of regulatory risk. >> Okay. >> So, there's a lot of unknowns that the 50 million round didn't know, like in in the sense that now Florida and Utah and some other uh states are starting to change their thought process on stem cell. So, it's starting to look more de-risked in that from that point point of view, I guess. >> So, directionally, the only Has there been any technological change or sales velocity change or avatar change Like has there been any new finding that fundamentally changes the game? Cuz again, I'm trying to help build the story here. Because that's all we're selling here. Is that we raised it 50, now we're raising it 500, and the reason is

5:59>> Oh, yeah, we'll have a lot of reasons. Yeah, cuz with that that [laughter] Yeah, sorry. I guess I wasn't understanding. Yeah, we're we're going to build a laboratory that we've already proven our technology that we've been delivering for years, and we're just going to be able to scale it. So, I think it'll be a revenue driver. >> Yeah. >> And that was not there at 50. >> That was not there at 50. >> Okay, great. And so, to me it's like these are the This is what has changed and now fundamentally changes the nature of the business. >> Mhm. >> That is That is it. So, it's like this is a $10 billion business. There are three more assumptions that have to be proven true. We proved this one right, which is why we are now cuz it's they're all discounts on a $20 billion business of the likelihood that you actually achieve that. Like, at least that's that's the thinking process most VCs, at least good VCs, come in with. Is like they're only making money on billion, you know, multi-multi-billion-dollar companies. And so, it's how many assumptions do I have to believe will be true? And the fewer assumptions that need to be true, the higher the valuation cuz the higher likelihood. And so, if we're like this was actually the riskiest of the the four that have to happen, and that's why we have the biggest step up um in our valuation.

7:01Because now it's just a capital constraint, not a assumption constraint. Like, we've already we've already deconstrained this. And from the regulatory risk perspective, all the directions are pointing green, not red. >> Mhm. >> That's how I'd position it. >> Okay. >> It is for sure a pitch, though. >> Yeah. Yeah, I get uh kind of in the weeds of the nuts and bolts, and then people just their eyes glaze over. >> They don't know the science. >> Yeah. >> They just want to know that they're going to make a lot of money. And so, it's going to be a sale on you and a sale on the story.

7:29>> Okay. Yeah, thank you. Good advice. >> just like do not be a scientist for the pitch. >> Yeah, yeah, no, I Oh, I'm not, so. >> Yeah, so we can help you with that if you need it. Yeah. >> If you're a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it.

8:15And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information and if you want us to actually help you de-constrain the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help and if we can, we'll invite you out to Vegas and we'll do this in person live.