The Network's Networth

Again today, like so many days in the past few weeks and months, I was asked several times whether I could be part of someone's network on LINKEDIN or Facebook. While it is flattering to be requested so many times I can't help but wonder if this signifies a new recognition of the philosophical fact that the network (and by inference one's REPUTATION) is everything in these changing times or whether it signals a more "tactical" (read cynical) realization that pharmaceutical companies (the top of the food chain for so many years) are now changing from their previously held positions of trust and power. Many are losing comfortable and secure jobs held over many years as the large companies re-organize and merge etc. Those same people who were so aloof and unapproachable find themselves in the unenviable position of now having to ask favors from those they might have shunned in the past.

I have leaned that if you want to harvest from the connection tree, like any other plant, you need to care for the whole thing, spend time in GOOD times to nurture it and look after its upkeep. Otherwise when you need its fruits you may find yourself out in the desert. Connection trees are self pruning If a branch is not kept alive through frequent contact it whithers and dies away. The second lesson I have learned through life is that one makes connections with people because of WHO they are not WHAT position they occupy at the time. Life is in a constant state of flux but by and large good people remaingood people. As always your comments are welcome.

MediCure Down for the count?

How many times have we Canadians in the Biotech area heard about a biotech company that was full of promise one day that suddenly took a dive the next. Most of our financings, especiallly on the "early startups" are based on providing JUST enough cash to get the critical experiments done. When they fail the whole company goes down the tubes.

For some years now I have been advocating another approach and that is to have SOME funding set aside to expand the "line" of possible things or "products" that the company could be seen to be developing. That way at LEAST some chance remains to survive the inevitable downs in this business.

While visiting Winnipeg yesterday I was confronted with yet another example of the wisdon of this approach. There is scarcel a better respected person than Bert Friesen but his company MediCure had a cliical trial fail and the company that stood at more than $2 a share the day before now traded at about EIGHT CENTS. Almost a year ago.

Now I fully understand the value of keeping a tight hold on the "purse strings" of an early company and may also see where the old stereotype of mistrust of "academic types"from the VC community comes from but I think that this view needs to be "matured" somewhat by the reality that the curret model of financing by Canadian VCs simply is not producing enough successes. Maybe it is time for another model?