North Carolina Entrepreneur Bypasses Angels and VCs

North Carolina serial entrepreneur Max Wallace has devised what he says is a yeezy boost adidas new business model for his latest medical start up. The company, called TheraLogics, is looking at ways to limit the role of inflammation in disease. To fund it, Wallace is bypassing traditional money sources such as angels and VCs. Instead, he’s assembling a network of researchers whose sweat equity will earn them an interest in the company, an article in TechJournal South reports. The approach not only minimizes start-up costs, but frees the company from investor pressures to create an exit sooner than might be advisable, Wallace insists. As he explains in the article, third-party investors can drive a “company to behaviors that don’t always serve as the best friend of the science.” Notwithstanding, Wallace isn’t ruling out the eventual need for outside investors. “When the science is sufficiently advanced, a company might approach VCs to aid in building management teams and a business,” he adds. At which point too, off course, Wallace and his sweat-equity network of researchers should be able to negotiate a more lucrative exit deal for themselves.

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