We’ve been involved in funding projects in the biotechnology industry for a long time and it’s a really interesting, really exciting industry to find oneself in. Simply put, biotechnology is a form of technology that utilizes natural biological process/product to advance human health or environment, although funding of these projects has recently included genetic engineering – for instance the more traditional forms include brewing, bread and/or cheese making.
While biotechnology has been around for centuries, from a funding perspective it is the more modern applications that attract controversy and risk, like the use of certain organisms that are used to make certain vaccines which, after trials, are questioned as to their true effectiveness and long-term risks. This is when an in-depth Due Diligence becomes that much more important.
The business life cycle of a biotech company can be summed up as follows: idea conception, business incorporation, R&D, trials, application for licenses, early product roll-out, market analysis as to expansion and likely putting profit from this idea back into company to repeat cycle again.
Given that business life cycle, investors like us will generally come on board as a funding partner either after successful trials are complete and/or when expansion is needed. Of course, each situation is different and involves much more particulars than could be summed here.
Always make sure that you make an informed decision in all cases,
All the Best,