|
Finance for European Biotechnology Firms |
|
|
|
Business Reports -
Market Report
|
|
An Analysis of Access to Finance for European Biotechnology Firms
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.
Full 43 pages report is available for free at our Downloads section.
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.
In summary, the useful toolkits may include BA and government co-investment, longer-term exits, partnering and M&A, from IPO to IP strategy as long as the accelerated business model such as Bioline. This will result in a story with a clear route to the marketplace. Intermediary models such as Bioline and Scottish ITI for life science must be looked at as priorities for translating world class research into commercial bio-innovation. Where finance market failure is an obstacle. There is story justification for public intervention. Amongst the toolkit for financing future on biotechnology business in Europe must be agents (private or public) with knowledge capabilities to transform tacit into codified knowledge by playing the role of ‘complicit’ brokers between the ‘implicit’ and ‘explicit’ knowledge poles. Europe’s basic weakness nowadays is the relative absence of “knowledge entrepreneur” unlike USA. In Israel, biotechnology entrepreneurship is taught in business schools (e.g. in the University of the Negev, Be’er Sheva). It is time such ‘talent’ was produced in abundance in Europe.
Read also at Pharmaceutical Licensing NetworkNewer news items
Related Items Farmavita.Net - The Pharmaceutical Licensing Network |
Farmavita.Net Journal 
