Jerry Sanders Case

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Group Case: Jerry Sanders X Cardia Corporation * Jerry sold his company, X Cardia Corporation, 10 months after founding it with partner, Ascher Shmulewitz, for 33 million (1997) * Jerry, President/CEO, started with 180,000 investment, lost half a million before selling company to UroHealth * Built company with assistance from prominent physicians, investors, professional service firms San Francisco Science * After selling X Cardia, Jerry and partners Ascher Shmulewitz and Marguerite McHenry looked to replicate their success with the founding of a new company, San Francisco Science * San Fran Science would look to create value by connecting investors, physicians, financiers, and established medical device companies,…show more content…
They leveraged Van De Water’s support to seek out buyers, and investors. * Connected with McHenry, who had the vast network in the medical industry. McHenry and Shmulewitz concentrated on testing and development, and Sanders worked towards selling the concept, who was learning the criteria and the market * Approach was to be saleable to Corporate buyers instead of actually making it work, therefore not squandering resources whatsoever * Sanders continued to raise money before it was needed, but from investors that added value ie. Physicians and scientists who would validate the technology, well known private investors, and institutional hook investors * Offered 6 investors 1% for 30,000. Then, after completing human trials, option to buy 2% more for 70,000. * Retained expensive, high quality law and accounting firms-Cooley Godward, and Ernst & Young because there was validation through association with these expensive entities. * Bumping shoulders with Johnson & Johnson at

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