DermaCare
For the exclusive use of R. van Munster, 2015.
9-808-064
REV: OCTOBER 21, 2010
PRICHARD G. HAMERMESH
LAUREN BARLEY
DeermaCa are: Zap pping Zits
Z Dirrectly
It was w a rainy Saturday
S
morrning in late November
N
20005, and Peteer Scocimara pulled p on hiss Croc shoes to take his rambunctiou us golden rettriever Jasperr for a walk. Walking thee dog would d give
Scocim
mara some much-needed m time to clearr his head an nd prepare fo or a Monday y-morning meeeting with the cofounders of his co ompany, DerrmaCare, Incc. Headquarteered in Liveermore, California,
Derm
maCare was a start-up ven nture that plaanned to marrket its Therm maClear acnee-treatment device d directtly to consum mers using direect response television t (DR
RTV).
Scocimara was DermaCare’s CEO, and he h and his co ofounders, Lu uiz Da Silva and George Choi, were excited abou ut the compan ny’s prospectss. Early cliniccal trials show wed that the ThermaClearr acne devicee made pimp ples disappeaar twice as qu uickly as thosse left untreatted. With those results in hand,
Scocim
mara and Ch hoi approacheed angel inveestors, includiing Silicon Valley-based
V
B
Band
of Angeels, to raise a Series A rou und. Just befo ore Thanksgiv ving, the Band of Angels sent s Scocimarra a term sheeet that offereed the compan ny $1.5 millio on, assuming a $4.5 million n postfinancin ng valuation. Shortly thereeafter, the CEO unexpecttedly received d a competin ng term sheet from Foundation Capitall, a venture capital c (VC) firm where his good frieend and form mer businesss school classsmate Charlees Moldow was w a partner. The VC’s term sheet offered the com mpany $4.0 million m in fun nding, assumiing a $7.65 million m postfiinancing valu uation. Moldo ow structured d the proposed d deal so thatt DermaCare would w receiv ve $1.0 millio on up front an nd the remain nder after thee Food and Drug
D
Adminisstration (FDA
A) gave DermaaCare clearaance to markeet its acne dev vice. Scocimara was in a quandary. The angell
9-808-064
REV: OCTOBER 21, 2010
PRICHARD G. HAMERMESH
LAUREN BARLEY
DeermaCa are: Zap pping Zits
Z Dirrectly
It was w a rainy Saturday
S
morrning in late November
N
20005, and Peteer Scocimara pulled p on hiss Croc shoes to take his rambunctiou us golden rettriever Jasperr for a walk. Walking thee dog would d give
Scocim
mara some much-needed m time to clearr his head an nd prepare fo or a Monday y-morning meeeting with the cofounders of his co ompany, DerrmaCare, Incc. Headquarteered in Liveermore, California,
Derm
maCare was a start-up ven nture that plaanned to marrket its Therm maClear acnee-treatment device d directtly to consum mers using direect response television t (DR
RTV).
Scocimara was DermaCare’s CEO, and he h and his co ofounders, Lu uiz Da Silva and George Choi, were excited abou ut the compan ny’s prospectss. Early cliniccal trials show wed that the ThermaClearr acne devicee made pimp ples disappeaar twice as qu uickly as thosse left untreatted. With those results in hand,
Scocim
mara and Ch hoi approacheed angel inveestors, includiing Silicon Valley-based
V
B
Band
of Angeels, to raise a Series A rou und. Just befo ore Thanksgiv ving, the Band of Angels sent s Scocimarra a term sheeet that offereed the compan ny $1.5 millio on, assuming a $4.5 million n postfinancin ng valuation. Shortly thereeafter, the CEO unexpecttedly received d a competin ng term sheet from Foundation Capitall, a venture capital c (VC) firm where his good frieend and form mer businesss school classsmate Charlees Moldow was w a partner. The VC’s term sheet offered the com mpany $4.0 million m in fun nding, assumiing a $7.65 million m postfiinancing valu uation. Moldo ow structured d the proposed d deal so thatt DermaCare would w receiv ve $1.0 millio on up front an nd the remain nder after thee Food and Drug
D
Adminisstration (FDA
A) gave DermaaCare clearaance to markeet its acne dev vice. Scocimara was in a quandary. The angell