M2A2 - Essay Example

1. From the entrepreneurs perspective, what is most important?  In the case, both the inventors and Tenex Greenhouse were entrepreneurs. Of the two,it is the inventors with the innovative products, concepts, procedures or services who are more obvious entrepreneurs rather than Tenex. Entrepreneurs are people who have innovative ideas that will satisfy a certain need or want, create a need or in the Tenex case, life saving device such as the one invented by CardioFib. People who have this great idea is also willing to take risk and “get their hands” dirty for the business to grow are the real entrepreneurs.

Both entrepreneurs have priorities in their respective businesses. For CardioFib, the most important thing is to get funding from Tenex Greenhouse to grow its developing non-invasive platform technology that detects, localizes, and quantifies areas of cardiac tissue starved of oxygen due to an arterial blockage that will enable cardologists to treat more patients and guide them to apply appropriate therapies efficiently. Without the necessary capital to fund the idea or invention, the business cannot grow or penetrate in the multi-billion dollar cardiac rhythm management and interventional cardiology markets.

The idea will remain in the trestle board and will have difficulty in realizing itself in the market. Equally important, CardioFib must also meet its milestones as agreed with Tenex Greenhouse for the succeeding funding to push through. For Tenex Greenhouse, it is very important that the portfolios they managed will have a greater probability of success for their investors and institutional partners have a return of their investment and for their business model to work. 2. What additional benefits will the institutional partners get with the new venture?

  Tenex Greenhouse pride itself with their narrow but deep intellectual capital. Having this depth in intellectual capital will allow improved deal flow, extensive and rigorous due diligence reinforced with institutional strength that will allow its institutional partners to fund successful investing opportunities in new ventures. Tenex being a forum of investing angels, its institutional partners will have the network and knowledge of its members where it could capitalize for its chosen portfolios that were prescreened by Tenex to have a greater probability of success.

Also, institutional partners will also have the benefit of support of the dynamics of the investment process and provides due diligence that would ease both the investing institutions and chosen portfolio from the burden of investment leg work. The chosen portfolios and new funded ventures of institutional partners will also get support from Tenex that enhances their probability of success thereby ensuring returns to fund invested by institutional partners. Support provided by Tenex to its portfolios includes access to its sophisticated laboratories, including wet labs, and fully furnished office facilities at its Burlingame headquarters ‘innovation center’.

They are also offered consultative management talent and administrative support and hone their business and organizational strategies. These measures and support provided by Tenex to its chosen portfolios ensure that the risk taken by its institutional partners are minimized and its probability of success being enhanced.