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Sparrow Therapeutics

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It is June 2006, and Ken Powers, chief executive officer (CEO) of Sparrow Therapeutics, is facing a difficult board meeting. His successful young biotechnology company has reached a critical stage where he has to decide whether or not to sell up. Ken knows that the decision cannot be based solely on his personal goals—he has to consider what
Sparrow’s different investors want. Ken cofounded Sparrow as a university spinout back in 1998 with a talented group of colleagues supported by an initial group of business angels.1 Now, Sparrow has blossomed into one of the UK’s most promising small biotechnology companies, thanks in part to a lot of cash it received from venture capital (VC) investors. But—even given the expertise of Ken and his cofounders,

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