Sid Labed
Founder
THE ENTREPRENEUR’S DILEMNA
Entrepreneurs are driven by vision, passion, and an unwavering commitment to hard work. Yet, they often face a critical challenge: insufficient financing to bring their ideas to life.
Even when funding is available, it often comes at the cost of significant equity dilution, compromising the founding entrepreneurs’ ownership and influence.
This approach is unsustainable and counterproductive.
How can we change the system to empower entrepreneurs while ensuring fair value creation for both them and their early investors?
We believe this is the most vital question for any startup committed to innovation and growth.
Investor and Entrepreneur Aligned Strategy
The strategy involves starting with a low company valuation, around $1 million.
Allow initial investors to acquire a significant share (25% or more) for a $250K investment.
After securing this early investment, the focus shifts to de-risking and proving the concept to attract further funding at a higher valuation.
Example of De-Risking and Proof of Concept
Step 1: In Vitro Assessment
We begin by de-risking a lead through standard in vitro analysis to identify potential side effects. This quick process (1-2 months) helps an experienced pharmacologist evaluate initial risk. If risk is low, we move to Step 2. If high, remaining investment (around $200K) is returned to investors.
Step 2: In Vivo Assessment
For drug targets with established animal models, we use the simplest, most reliable model to construct a dose-response curve and assess efficacy and side effects.
Successful completion of both steps significantly increases value, attracting Series A capital or enabling partnerships or sales at a higher valuation, enhancing returns for original investors.
Examples of Technology under vetting
Diastolic Relaxation: Our hearts use more energy to relax then contract. Failure to relax between beats contributes to heart failure. Proprietary mechanism-based combination of approved therapeutics can be tested with Sensitive EKG methods and measure the rate of relaxation. Next step human testing.
Utilization of FDA GRAS (bacteria ) to treat cardiovascular and kidney disease: Select and clone an all-natural safe bacteria and test in animals.
Utilizing plant biology to enhance CO2 fixation: Proof concept in CO2 chambers. Patent best plant types and enhance by increasing the efficiency of photosynthetic units.
Pain management equivalent to morphine but without addiction and euphoria. Molecular target identified. Ready for invitro de-risking and in vivo proof of concept.
Peripheral Arterial Narrowing ( PAD); PAD is a condition usually expressed among older individuals and results in decreased blood flow to the legs causing pain restricted walking capacity, ulcerations, and in some cases amputations. Vasodilator therapy given orally makes matters worse by stealing blood flow from diseased arteries. The solution is to employ state of the art proprietary formulations that enhance the absorption of
Refurbished Laboratory Equipment: The sale of refurbished products has consistently proven to be a high-margin business in industries like clothing, appliances, and furniture. Likewise, the market for refurbished laboratory equipment has demonstrated strong profitability, with the proof of concept successfully completed. A small capital investment is needed to scale operations and boost marketing efforts for these refurbished lab tools.
Weight Management Technology: Clinical Trial Proof of Concept with a natural product that increases satiety hormones .
De-risking and proof of concept are structured to be completed in under a year.
However, not all visions align with this model. POC LLC will carefully vet all ideas and select only those that fit this approach.
Not all scientific ideas translate into successful businesses.
To address this, POC Technologies LLC will engage a Business and Marketing Advisory Board to pinpoint the most promising areas for de-risking, proof of concept, and business potential. Our advisors will assist in selecting projects that offer early commercialization opportunities or have the potential for high-value partnerships.
