Here are a couple of notes from yesterday’s VC Lunch at Fish & Richardson:
- Charles Scott of Intel Capital was extremely bullish about mobile applications. In general the panel gushed about mobile. If we were watching The Graduate (or were updating the movie for 2010), we’d substitute the word “mobile” for the “one word: plastics.”
- Among other things, Steve Brotman of Greenhill SAVP noted healthcare is a difficult investment. He was talking about the IT of healthcare – things like Personal Healthcare Records, Electronic Healthcare Records, etc. Why? Because of how heavily regulated the industry is in general. He complained that his doctor can’t even email him because of regulatory (HIPAA, specifically).
- On the other hand, nanotech über-God, Josh Wolfe of Lux Capital, was bullish on VC investments. Lux invests in cleantech, nanotech and the life sciences and he mentioned seeing some positives in those sectors.
- At the same time, the panelists seemed in agreement that cleantech is currently in a bubble. Without mentioning names, Wolfe described seeing companies with ridiculous valuations. He also predicted a rise in nuclear energy (which is something I’ve been waiting for. Whatever happened to that million pounds of uranium that one of the I-banks was selling? Also, will that rise in nuclear include liquid fluoride thorium reactors?)
- Owen Davis of NYC Seed mentioned activity in the early-stage NYC technology scene has never been stronger. He said they’ve never seen more high quality companies before. NY tech is exploding! He also said big venture funds like Polaris Ventures are moving downstream, meaning, they’re more willing to look at earlier stage companies.
- All panelists noted (and once again confirmed to this writer), one of the primary reasons to go out and talk to VCs is their contacts. And if you’re going to enter into that type of relationship, it will be more like a marriage than a friendship.
As always, it was great to get out of the office for a few hours. Thanks to FR’s Jorge Torres for inviting me.
Yeah, so the Beaker says… The President wants to tax offshore profits, which could impact U.S. innovation… Pharma is basically upbeat about healthcare reform because they’re expecting single-digit growth in the U.S. over the next few decades. The Medical Device industry is unhappy because they’re being targeted for $40 billion in taxes… Novartis’s CEO will be replaced… Watch out for the fembots… J&J saw its sales fall in 2009, the first time in 70 years!… Is the economy improving? GE Healthcare says yes… That said, layoffs in the pharma industry continue – 8,000 at AstraZeneca… BMS has $10 billion in the bank and is on shopping… BTW, if you didn’t know it, sales reps are an endangered species, but Pfizers are said to be the best…
BTW, I appreciate the short nature of the Beaker broadcasts.
Have you taken Beaker’s survey? Click here to do so.
I haven’t posted in a few days because I was traveling to California for my grandmother’s 100th birthday. I knew reaching the century milestone was pretty significant and rare – Aurora Laws Wong is the first in my family – but I had no idea that Centenarians are one of the fastest growing demographic in the U.S.
Aurora Wong
According to a Wiki post on the subject:
- In the course of the last four decades, the number of people reaching 100 has increased almost tenfold, so that now one in fifty women and one in two hundred men reach that age
According to the United Nations:
- By 2050, globally, there will be 2.2 million centenarians (compared to 135,000 in 1998) – that’s one in every 5000 people. The largest population of 100-year-olds will be in China with 472,000, the U.S. with 298,000, Japan with 272,000 and India with 111,000.
Interestingly, the United States currently has the greatest number of centenarians in the world, estimated at 96,548 on November 1, 2008. Japan is second, with 36,276 in September 2008. And, France has the highest rate of centenarians in percentage of the total population: 20,115 – 1 centenarian for 3,076 people. The rate is 1 per 3,522 in Japan and 1 per 3,300 in the United States.
Aurora Wong Laws, Teacher
My grandmother is a pretty cool lady. Born to a Cantonese father and Panamanian mother, Aurora Wong grew up in Panama’s Bocas del Toro province and Panama City’s Casco Viejo before there was much more to that city. She first worked as teacher in Panamanian schools, then as a member of the Ministerio de Educación, worked to advance the cause of education throughout Panama. She married Malcolm Laws, had five daughers, including my mother, and one son and split her time between Panama City and her beloved Dolega, in the Chiriqui province of Panama.
Aurora Laws Wong retires from teaching
Aurora was a constant figure in my youth, both in Panama and in California, and served as inspiration for studying science, teaching my children Spanish and keeping family traditions alive. I toast her!
Aurora Laws Wong Centenarian!
Coincidentally, my friend Larry’s grandmother just turned 100 as well. At 94, she ran for Congress. Pretty cool.
How do you think biotechnology will work to increase the number of individuals that reach and pass the century mark? My guess is they will increase significantly and their lives will be much more active.
Last week, I participated on a panel on PR, Branding and Buzz. The group was 95% technology startups with a couple of Health I.T. and Health 2.0 folks in the mix. One of the most hotly debated questions was: How do you reach brand-name reporters like Walter Mossberg, David Pogue or Andrew Pollack?
I reminded the audience that the influence of bloggers has grown to the point that they cannot be ignored. Both independent and corporate bloggers have a growing influence in spreading the word about particular services and products. Bloggers are relatively easy to develop a relationship with, and brand name reporters pay attention to bloggers. When a blogger writes about you, you reach an audience you can easily develop a relationship with, and who is probably just as passionate about your technology as the brand name reporters are.
But here’s the thing: You can’t pitch bloggers the same way you pitch journalists. If you expect to get through to bloggers, you need to understand they take the relations part of “public relations” seriously. In fact, most bloggers are about relationships, period. So, to assure your success, it makes sense to carefully plan your pitch efforts with bloggers. Here’s how:
First, you want to make sure your story is clear and compelling. If you have a desired outcome and a concise call to action, that helps too.
Second, make sure you’re talking to the right people. There are dozens of biotech, life sciences, and pharma bloggers. Fortunately, only a few of them should matter to you. They are the bloggers everyone links to. The ones all the other bloggers comment about. These are the ones who are easy to get to know. Read their blogs for a few days. Pay attention to the posts that get the most comments. Check out the bloggers’ social media profiles on LinkedIn, Twitter, and Facebook. Pay attention to what they write. Pay attention to the comments people leave. In many cases, more than one blog will fit the profile you’re looking for.
Third, comment on the blogger’s blog so that they interact with and become familiar with you. Show that you’re doing your homework. Talking about a blogger’s posts is a great way to get the blogger to pay attention to you. Be transparent and honest – you’re not pitching to them. Your goal is to get the blogger to recognize you so that when you finally do reach out, you won’t be coming out of left field. When the time is right, introduce yourself via email.
Fourth, have a genuine conversation with the blogger. Keep commenting. Meet them in person if possible. Mention that you’d like them to review your product or company. Remember, just like the media, there are no guarantees, and there is no guarantee the coverage will be positive. Be prepared to react to negative coverage if you get that.
Finally, say thanks. If the blogger does write about you, make sure you let them know you appreciate it.
You’re not going to get a “yes” or a positive story every single time you approach a blogger or a reporter, but polite persistence pays. And if you make the extra effort, eventually, bloggers will help you create the buzz around your brand that will get you noticed by the brand-name reporters.
On January 7th, I appeared on the PR, Branding and Buzz panel for UltraLightStartups. The panel included reps from PR firms that focus on tech startups (LaunchSquad), more established companies (both, Trylon SMR and Schwartz & Co) and MessagingLab, our naming and marketing communications firm.
We didn’t talk that much about my passion for messaging and storytelling, but I believe it’s the first step for any startup and any company launching a product. The story also needs to be told consistently and persistently (see minute 16:15 on the video). I’ve blogged about message previously and will continue to make that a part of my focus in 2010.
One of the interesting points of discussion was around the use of press releases. There was some discussion around whether a release “scoops” the story. My take on releases is closer to that of Todd Barrish of LaunchSquad and David Meerman Scott, in that press releases are a way of letting the world know you exist, documenting the progress your company is making and helping with your search engine rankings.
That said, when you are in the earliest stages of your startup, your focus should be on building a great product and positioning yourself as an expert (which I mention around 12:33 on the video).
I enjoyed the panel, learned a bunch from my fellow panelists and – like always – enjoyed interacting with the ULS crowd.
Thanks Graham for inviting me.
One of 2009’s major pharmaceutical deals was Roche’s purchase of Genentech for $46.8 billion. It might be instructive to look back on the two companies relationship since it is perhaps one of the most widely known partnerships and is often touted as the most innovative and successful biotech-pharma deal.
Time Magazine heralds the era of genetic engineering
The relationship between the two companies is credited for solving a biotechnology company’s need for financing while strengthening a big pharma’s pipeline. The deal set the stage for similar deals that would happen throughout the 1990s, most significantly perhaps, Millennium’s licensing deals, partnerships with big pharma, eventual full product control and the building of its portfolio via acquisitions.
Genentech was the first biotechnology company to go public on Oct. 14, 1980, when it sold 1,000,000 shares for $35.00 per share using the symbol DNA (which, sadly, will be retired soon).
Genentech partnered with Roche in the early 1980s and Roche acquired a 55.9% stake in the company in 1990, the rest in 1999 when it sold a minority stake to the public. The deal worked well because it gave Genentech relative autonomy and a clear market split – Roche handled ex-U.S. sales and Genentech developed its blockbuster oncology portfolio (which includes top-selling Herceptin, Avastin and Tarceva). Over time, Roche became more reliant on Genentech’s pipeline and made an initial offer for the remainder of Genentech’s oustanding shares in 2008.
After the deal was announced in early March 2009, Genentech said it could win approvals on 15 new drugs between 2011 and 2015. And by 2015 Genentech could introduce 24 new uses of existing drugs in its portfolio.
When the deal finally went through, it effectively ended the existence of what was considered the world’s oldest and most successful biotechnology companies.
I remember I was a high school senior when I read the Time Magazine piece. The Genentech story, along with all the science fiction I read, was influential in the career I chose. One of the highlights of my career was visiting Genentech at 1 DNA Way in South San Francisco and pitching a piece of business (which we won), as well as having a friend leave New York, join Genentech, giving me the vicarious thrill of being on the inside. I’m looking forward to seeing how this story evolves.
To read more, here’s the Genentech press release, the NYTimes article on the announcement and FiercePharma’s dissection of the deal. For a more in-depth view of the company’s early days, visit UC Berkeley’s oral history project interview with DNA’s first CFO, Fred Middleton.
Image – Time Magazine
From everyone here at MessagingLab, we wish you all a very happy and prosperous 2010.
It wouldn’t be the New Year’s issue if I didn’t give myself some resolutions. Here are nine that I’m going to work on and that you might consider:
- Brainstorm – Look for new ways to connect with you (my customers and the media). What are you customers about?
- Go beyond pushing product to creating experiences. (I got this one from Dan Kennedy. It applies more to my naming clients.)
- Think of MessagingLab as a media and publishing company. The information we provide is valuable and we’ll be providing in more formats during 2010.
- Question historically based biases about the business to find new opportunities. Are there opportunities to be created by doing the opposite of what everyone else is doing?
- Find the a business within the business. Probably easier said than done.
- Bring readers customers something new and improved. Involve customers with choice. Can you repackage your offerings in several flavors?
- Communicate more frequently and more consistently.
- Develop and offer information of interest.
Let me know what you’re resolving to do in 2010. And remember, Chinese New Year’s is on February 14th – the same year as Valentine’s Day this year.
