My due diligence process on critical MedTech start-up issues had taken me several months to complete, but I was pleased to see that all of the “boxes” in the Pre-Seed phase had been checked off favorably.
i) Was there a Compelling Business Case? Check.
ii) Was there a significant niche with a critical clinical unmet need? Double check!
iii) Was there a unique value proposition and solution with a strong supportive scientific understanding of the mechanism of action (MoA) and compelling proof-of-concept? Check!
iv) Does the intellectual property have specific claims that clearly describe and protect the unique MoA? Check!
I was now ready to move to the next critical step: organizing a meeting with the three potential Co-Founders, Dr Randy Moore, Elena Di Martino and myself, and to map out the steps towards a business partnership, including incorporation and - most importantly - a fair and unambiguous Shareholders Agreement.
I sensed that both Randy and Elena were a little unsure about the process – completely understandable, given my background as a serial entrepreneur and the fact that neither of them had been through the MedTech start-up process before.
I imagined they saw me as a “double-edged sword” - they saw the benefits of my proven business skills, but could they trust me to not take advantage of them?
To further complicate matters, I was suggesting the re-location of the technology from Calgary to Montreal, where my MedTech network was well established and the Ecosystem was more favorable. I also suggested changing the name of the new company to ViTAA from the original “VariReal”, and to use my tried and proven law firm, Fasken Martineau.
I decided that the best approach was to invite them to Montreal for a two-day business planning session.
My goal was to familiarize them with the strong local MedTech Ecosystem, including some Key Opinion Leaders. I am continually amazed by the strength and intellect of so many MedTech stakeholders in Montreal and Quebec overall, from KOLs in the medical field to the wide array of supporting institutions and businesses. I was hoping that my visitors would also see that the start-up success factors here were abundant.
Most importantly, I wanted us all to develop a mutual trust and respect so critical from the onset of a MedTech start-up.
One of the key KOL meetings was with Dr Kevin Lachapelle, a leading cardiovascular surgeon at McGill who had been conducting similar aortic clinical research on aneurysms. I was already 99% certain that ViTAA’s team and business model was the right fit, but Dr Lachapelle’s favorable response to the work of Drs Moore and Di Martino convinced me that the business potential was real.
Further KOL feedback from the medical university networks in Montreal and Toronto cemented my earlier suspicions of the of the compelling clinical unmet need and business opportunity.
For me this was the last and most important step before going all in - another check mark regarding multiple KOL validation of the unmet need!
Towards the end of the two-day session, we hammered out the key details of the partnership in a matter of hours and the process of incorporation. We all agreed that our respective roles in the ViTAA start-up were equally important and critical.
I appreciated the mutual respect and trust that rapidly grew out of our discussions and deliberations. Unlike some other high-powered scientists and surgeons that I had to deal with over my career, Randy and Elena were solid, down-to-earth people! I sensed we were all ready!
We shook hands (this was pre-COVID-19, remember) to confirm the deal, and, ViTAA was born!
