We have noticed that many capital raising biotech firms are so set on getting in front of the next investor, or finding new investors in rapid motion, that they do not slow down to think about how to maximize interest once they are face-to-face with a sophisticated well-informed investor. 

Warren Buffet and his partner Charlie Munger are recognized as some of the most successful investors in history.  Buffett and Munger credit their success to employing “mental constructs” that all point in the same direction. 

  • A “construct” derives its name from being a mental construction based on the general scientific process of observing natural phenomena, inferring the common features of those observations, and constructing a label for the observed commonality or the underlying cause of the commonality. 
  • Any given construct derives its value from the shared common meaning it represents for different people: if a construct is clearly articulated and the phenomena it encompasses are clearly defined (so that different people think the same when they hear the name), then it becomes a useful tool that facilitates understanding and communication.

The duo has labeled using multiple mental constructs as the “lollapalooza effect” and time to time again Buffett and Munger have expedited returns with strategic edge by organizing and executing multiple mental constructs. 

We realize that the biotech industry is based on a series of mental models, processes, and strategies. The top industry success stories are, in part, uniquely adapting a collection of models and mental constructs relevant to the organization and individual stakeholders involved. 

As our successful clients approach attracting, negotiating, and producing returns on deals, they leverage stacking mental constructs which offers them unique points of difference, culminating in a separation between their progress and that of others in the industry.    

Another stack is clear comprehension of unique abilities and spending the bulk of energy focusing on areas of strength, where every hour spent regularly yields meaningful returns.  They combine this short term tactical approach with a mindful strategic approach to structuring everything with the long-term in mind. They aim to communicate to all stakeholders about their firm’s mental construct models and the dedication in all facets, while the constructs grow and evolve over the course of the client development process. We recommend that if you are looking for an advisory firm in healthcare, you choose one that uses advanced structural approaches to find alignment when raising capital, syndicating deals, negotiating licensing terms or developing the terms and parameters of a corporate transactions.  

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