The financial contest is probably the biggest barrier to European competitiveness in biotechnology. Very young start-up companies frequently struggle to raise cash to start the business. It is becoming more difficult than before. However, there are an increasing number of national and regional schemes that provide money to young companies. The interviews conducted as part of this study indicated that there is a financial gap of about € 1-10 million, which is the main obstacle in the later stage of biotechnology business cycle. This financial gap is also pointed by the recent Europabio report (Europabio, 2005). European biotechnology companies seem to founder after a three to five years honeymoon period either through a lack of ambition and application or more likely the lack of suitable financial infrastructure. Although European companies attract seed financing and venture capital for a few years, the supply of money eventually runs out for most companies. At this critical stage, most of them disappeared because no more money becomes available.
25 Aug 2008
25 Aug 2008
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