Incept LLC and Confluent Surgical (A)

Posted: 10 Oct 2009

See all articles by Bhaskar Chakravorti

Bhaskar Chakravorti

Harvard University - Business School (HBS)

Toby Stuart

University of California, Berkeley - Haas School of Business; Harvard University - Entrepreneurial Management Unit

James Weber

affiliation not provided to SSRN

Date Written: March 25, 2009

Abstract

A venture capitalist must decide whether to invest in a medical technology company that licenses intellectual property from a privately held IP holding company based on a platform technology. Entrepreneurs Amar Sawhney and Fred Khosravi founded Incept LLC to commercialize their multi-use hydrogel technology. The pair then spun off Confluent Surgical to develop some, but not all, of Incept's IP. The specifics of which IP Confluent would develop were described by a licensing agreement between Incept and Confluent. Venture capitalist Charles Warden of Schroder Ventures Life Sciences was deciding whether to invest in a Series A financing round in Confluent. Initially very excited about the deal, Warden becomes concerned about Confluent's valuation and its ability to succeed as a business when he learns about restrictions placed upon Confluent by the licensing agreement. The case describes Incept's business model and its approach to managing risk in early stage ventures. The case also addresses issues such as diversification and options preservation as well as the importance of trust and long-term relationships in decision-making in entrepreneurial arenas.

Suggested Citation

Chakravorti, Bhaskar and Stuart, Toby E. and Stuart, Toby E. and Weber, James, Incept LLC and Confluent Surgical (A) (March 25, 2009). Harvard Business School Entrepreneurial Management Unit HBS Case No. 809-062, Available at SSRN: https://ssrn.com/abstract=1485675

Bhaskar Chakravorti (Contact Author)

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Toby E. Stuart

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States

James Weber

affiliation not provided to SSRN ( email )

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