Replies to post #498481 on NorthWest Biotherapeutics Inc (NWBO)

[pqr]

flip, see PM post 498475 with regard to investment series nomenclature

Don’t mean to challenge your post but I cannot read the two posts consonantly

Best

[EMHLondonUK]

Flipper,

Just to clarify, this stock issuance is labelled “C” because the prior two tranches of preferred stock were “A” & “B”. We shouldn’t confuse this with VC/Private Equity funding rounds. Arguably, NWBO remains a “pre-revenue” company. So even though it has public equity already, it would be considered an A/B in venture terms. Growth equity starts at round “C” but those investments are generally for commercial growth (marketing, sales force, etc) for an established and rapidly growing company (annual revenues of 50-100m usd).

Of course, all of these definitions are arguably loose, but I don’t want all of us to conflate the preferred stock issuance with a much different question of our funding sources. The danger of going IPO as early as NWBO did (taken in retrospect - as I’m sure they wanted faster approval cycle than we have ultimately witnessed). Had they stayed in private markets, growth equity firms could have invested. Many growth firms are not allowed to do PIPES (private investment in public equities) although a few are.

I’m not sure that the existing mgmt team would want to have an active private equity style investor in their corporate governance - as I’m sure they’d want a strong if not controlling position on the Board.