BIOTECH BUSINESS: FUNDING OPPORTUNITIES PRODUCT DEVELOPMENT CYCLE

PRODUCT DEVELOPMENT CYCLE FOR A DRUG

BIOTECHNOLOGY BUSINESS:
Time to recover R&D costs are being compressed

THE VALUE OF THE BIOTECH COMPANY’S ASSET
varies with market and geographic region

THE SAN FRANCISCO BAY AREA
a major biotechnology claster

THE BOSTON/CAMBRIDGE
a world-top biotechnology claster

BioBAT AT BROOKLING ARMY TERMINAL
a biotechnology incubator

SILICON VALLEY

MEDICON VALLEY

Abundance of high quality, adequately funded academic research
Ready resource of seasoned and experienced biotechnology
entrepreneurs
Ready access to sources of at-risk, early and development-stage capital willing to fund start-up concepts
Adequate supply of technically skilled workforce experienced in the biotechnology industry
Availability of dedicated wet-laboratory and specialized
facilities at affordable rates
WHAT IS A BIOTECH CLUSTER?

WORLD’S 2012 R&D SPENDING

CAPITAL RAISED IN 2012
USA vs Europe

BEST STARTUP FUNDING COUNTRIES IN EUROPE
Gruber 2009

STARTUP FUNDING SOURCES
Personal capital
(Fools), Friends and Family (FFF)
Government grants and financing programs
Angel investors
Foundation with the focus in you sectors
Venture capital industry
Institution corporate partnership
Institutional debt financing

STARTUP FUNDING SOURCES

PERSONAL CAPITAL
~5-20% of the company assets
relatively small, varies:
500 USD (Rob Swanson + Herb Boyer in Genentech)
tens of thousands USD

FFF
relatively small, varies,
up to tens of thousands USD, sometimes up to hundreds of thousands USD

GOVERNMENT GRANTS AND FINANCING PROGRAMS
relatively large (up to several millions USD), non-dilutive
hard to get
https://ec.europa.eu/research/participants/portal/desktop/en/opportunities/index.html

https://www.sbir.gov/
https://www.helmholtz.de/transfer/technologietransfer/transferinstrumente/helmholtz_enterprise/
GOVERNMENT GRANTS AND FINANCING PROGRAMS

ANGEL INVESTORS
USD 20-250 K, relatively easy to get

VENTURE CAPITAL INVESMENTS
Large, highly professional management, high-diluting

CORPORATE PARTNERSHIP

IPO, ACQUISITIONS, SELLS