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InvestorSpotlightJonathanE.PerelmanCPAPFSMSTandRobertE.FiorentinoCPANJBINrecentlyannouncedthatoneofitsgraduatecompaniesEdgeTherapeuticsInc.hadattractedin-vestorswhowerethefirsttotakeadvantageofNewJerseysnewAngelTaxCredit.JonathanE.PerelmanandRobertE.Fiorentinobothpartnersattheac-countingfirmFriedmanLLPinE.HanoverN.J.wereinvestorsinthemostrecentfinancinground.JonathanPerelmanischairofthePhysiciansHealthcareGroupandDentalPracticeServicesatFriedmanLLP.Hehasdoneafewsmallpersonalin-vestmentsoverthelastcoupleofyearsandsaysthemostintriguingonewasEdgeTherapeutics.HeheardaboutEdgeTherapeuticsthroughamutualfriendwhoalsotoldhimaboutthenewlyavailableAngelTaxCredit.Tenpercentre-turnviatheNewJerseyinitialtaxcreditsformyinvestmentduringthefirstyearwasappeal-inghesaid.RobertFiorentinoischairofFriedmansLifeSciencesGroupwhichisfocusedonearlierstagebiotechandspecialtyphar-maceuticalcompanies.Hehasworkedinthelifesci-encespaceforover25yearsandhasassistedhiscli-entsinmakingnumerousinvestmentswithinthein-dustry.Healsopersonallyinvestsinnon-clientearly-stagebiopharmaceuticalcompanies.InvestmentTrendsAscounselorstoinvestorsandasinvestorsthem-selvesFiorentinoandPerelmanareintunewiththeebbandflowofthefinancingandcapitalopportunitieswithinthebiotechandtechnologyindustries.Afterthe2008financialcrisistheysawbiotechcompaniesstrugglingtoraisecapitalbecausetraditionalcapitalsourceswantedtode-risktheirinvestmentsandthereforewereoptingforlaterstageproventech-nology.Nowinlate2013andearly2014theyarebeginningtoseeachangeasthelargerbiotechcom-panieshavereachedsectorperformanceofover30Page4RobertE.FiorentinoCPApercentandhaveamorerobustinitialpublicoffer-ingsIPOmarket.WiththerewardscomingbacktheVCsmaybemoreopentomovinguptheriskcurvewithearlierstagecompaniessaidFiorentino.AlthoughtheydontquiteseeitasatrendyetFiorentinoandPerelmanarekeepinganeyeoncrowdfundingwhichwasmadepossiblethroughtheAmericanJobsAct.ThismaybecomemoreprevalentinthegeneralearlystagespacesaidFiorentino.Howeverwithrespecttobiotechearlystagetheuptakeisslowersincebio-entrepreneursarenotyetsurehowthecrowdfundinginvestorswillinterplaywiththeirmoretraditionalventurecapi-talinvestors.Neverthelesscrowdfundingcouldprovideseedcapitalandfillavoidsocompaniesneedtokeepitontheirradarscreen.NetworkingNecessitiesAsCPAsbothPerelmanandFiorentinoarecontin-uouslyincontactwithpeoplewhocanprovideinfor-mationaboutup-and-cominginvestmentopportuni-tiesinthehealthcareandlifesciencescommuni-ties.Theyoftengetwarmreferralscomingfromtheirtrustednetwork.Entrepreneursshouldconsiderthenetworkstrengthofeachpersonontheirmanagementteam.Theearlystagecompanieshavetoworkextrahardandtapintotheirnetworkandmakesurethattheirman-agementteamhastherightconnectionswithin-vestmentgroupssaidFiorentino.Entrepreneursshouldalsoconsiderthestrengthofapotentialinvestorsnetwork.ThereisgenerallyapackapproachtoinvestingsaidFiorentino.Ifcompaniescanlureaninvestorinchancesareoth-erswilltakealooktoo.Inlifesciencethistheoryofnetworkingextendstothelargerpharmaceuticalandbiotechcompaniesultimatelyyoumayhavetorelyonapartnershiptocommercialize.ThePerfectPitchWhenlisteningtocompanypitchesPerelmanandFiorentinoconsiderthebasics.Ilookatitfromtheperspectiveofwhoarethemanagementandboard