New Business Startup Decides To Move Headquarters To California
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Friday, December 21, 2012.
Choosing a good location to run a business is an important decision for most entrepreneurs. One business startup in the medical technology field has decided to move its location from an out-of-state location to California, where there is more activity in medical technology. The company, Home Dialysis Plus, recently obtained $50 million in investment funds which helped allow the company to make the move.
The company had originally obtained a grant for $170,000 which helped to get the company off the ground. Home Dialysis Plus was started to attempt to create a portable kidney dialysis machine superior to what was already available on the market. After obtaining the grant, private equity firm Warburg Pincus offered to invest as much as $50 million into the new startup company.
Along with Warburg Pincus, the Vertical Group also put investment funds into the company. The Vertical Group has offices located in California. The founders of the medical technology company are also originally from California, which may have influenced their decision to move their business from its previous location. One of the co-founders has already parted ways with the company in order to help start other companies.
With the move to California, Home Dialysis Plus will have to adjust its business planning in order to ensure that it can fully capitalize on the advantages their new location will offer for a business startup in the medical technology field. This will require making important decisions that could have legal implications. Knowledge of the applicable laws and regulations in the new locale would be helpful.
Source: Oregon Live, "Home Dialysis Plus, Portland life sciences startup, now calls California home," Mike Rogoway, Dec. 11, 2012