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Evaluating Biotech Startups?
spacey girl asks: "A start-up company i worked for was recently shut down. I've been looking for a new company for quite some time now. i've been offered something at two new startup companies (established in 2000) and I can't find too many references on the web for them. These companies are not exactly computer related but more science related in biotech (pharmaceuticals and such). What kinds of tools are available for evaluating stability and potential of these two companies? I tried looking for the investors but that was a no-go. Also, I'm referring to international companies, not just companies in the US."
You have to ask yourself, do they have a viable business plan? More specifically, do they have a patent on a major organ? (Appendix does NOT count, these can be removed). If you patent the leg, and charge royalties of $1 each, and get a 1% compliance rate, you make $1/leg x 1% x 10 legs x 6*10^9 people = $600m. (Don't be fooled into using the average number of legs, 99% of people have *more* than the average number). Fingers are better (8 per person) or toes (10). If they have cells, you hit the jackpot. Remember to ask for your contract to include stock options *and* immunity from the patent.
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are these companies public or privately held? If public and traded in the US, you can look at insider trading, and see what the execs are doing with their stock...
Also, since you sound unemployed at the moment, just take the position you have a better gut feeling about...whats gonna happen - are you going to be unemployed again after a few paychecks? Big deal, youre unemployed now. On the other hand, if you are receiving unemployment benefits, make damn sure you do a bit more research than it sounds like youve done already before you blindly leap, dont waste another 5 months of benefits on a job that might not even last that long.
.sig wanted: Must be concise, funny, and display my cleverness.
Since the question wasn't "how do I get info on a company", but rather "how do I evaluate a company", I'm not sure you've answered the poster's question.
Companies will not always gave you truthful, unbiased answers when asked what their weaknesses are, what their long term financial viability is, or how they stack up against competition. If they did this, analysts' jobs would be much easier and maybe we wouldn't have suffered through the dot-bomb experience.