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Ravenna Tech.

Ravenna Technologies Inc.


Founded:- 1994 Founders:- Chris Theodora (Chairman) CEO:-

Chris Vitale ( Senior Scientist) Juan O Gorman

President of Marketing:- Galla Placida. It is a small, start up biotech company. It was a genomics-

platform company to exploit a solid phase DNA chemistry.

Business Strategy of Ravenna


Build a strong and rapid growing business by

offering genomic-research products. Commercialize the product through business alliances with of each market. Advancing their technology.

Market opportunities

Market opportunities fell in to two categories.


1.

Biomedical Research
I. II. III.

Microarray fabrication Purification of DNA before high-throughtput sequencing PCR typing to detect viruses Detecting bacteria in platelets. Identified specific bacterial pathogens in positive blood culture test.

2.

Clinical Diagnostics
I. II.

Ravenna had five products in development which are expected to commercialize in market over the three years through corporate alliances.

Competition Faced
No competitor in array (supplying attachment

solutions to genomic-screening companies) market. Only two competitor in PCR-typing area:

Chiron Diagnostics Roche Molecular Systems

Several competitors in the DNA sample purification.

Challenges
1) The loan extension included an agreement by the

existing venture investors to provide the company with $ 3m in additional financing.


2) Ravenna had 5 products in development, which it

expected to commercialize over the next 3 years through corporate alliances.


3) It generated $54,000 revenue in 1999 and was projecting

$1,30,000 revenue for 2000, $3.9M in 2001 and $180 M revenue in 2004.

Bridge loan
Total amount raised- $2.5m. Culberston August- $ 1.25m Maturity time was Dec.2000 Interest rate was 15.44%

Loan will be repaid out of the amount raised from

venture financing round.

Problem for Culberston August


Whether to extend loan duration or not?

Biotech products take long time to give return and it

is associated by high risk so VCs are diverting towards IT sector.

The Decision
Mr. Bridge should extent loan duration because: The company is expecting to launch three products in next three years. Ariva is dominating player in Array market. In addition to interest company had received the warrants from Ariva, it can raise their yield in future. If company earn the revenue $59m at 2003 this would give 58% return to Culbertson August on extended bridge loan.