FRESH MONEY – FUNDING YOUR BIOBUSINESS

Regardless of you are planning to put a new plant biotech product on the market, a new biopharmaceutical or for instance a novel method to produce nanobodies, you most likely need to raise a significant amount of money to mature your technology towards commercialization.

  • How many money?
    • When do you need the money and for what activities?
      • From whom?
        • At what price?
          • At what terms?
            • How much control is given away?
              • What value increase do you project to be able to generate with the money?
              • Although selling of equity through VC financing is the most common and can come with many benefits, non-dilutive funding opportunities are not to be overlooked. Bootstrapping and debt financing are most often not realistic options for launching and maturing high-tech innovative businesses (see for instance the balance sheet of most early stage biotech companies with stocks floating on the market and the typical costs associated with the launch of new biotech solutions).

                 

                SELLING EQUITY

                Selling equity to VC firms or Private Investors: Often the prime option available for attracting the significant amount of money needed to start and grow a biobusiness. Dilution of ownership (and often with giving up most/all control) but with the potential to add skilled professionals to your investor foundation and the potential for associating committed funding (most likely milestone-based but with the potential for follow-up investments) and no need for collaterals (see also term-sheet discussion about this last statement).

                • SEE OUR SEARCHABLE LIST OF VC FIRMS IN THE BIOTECH ARENA HERE

                NON-DILUTIVE MONEY

                An opportunity to attract funding without giving up ownership in your business and for entering larger collaborative efforts (industry/academia). Though non-dilutive it can however take up significant organisational resources to construct winning proposals. Often mainly available on a national basis so it can depend on the country where your company is integrated. For introduction to broader international opportunities, you can look here for SME access to finance, grants, funds and programs at the NIH and EU:

                 

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