January 1, 2014 Comments Off on Russia-Focused Venture Capital Supports In-Bound Technology Transfer and Company Building: An Analysis of Investment Trends and Outcomes Posted in: General Biotechnology This paper analyzes the approaches taken by the Russian government to promote innovation in the biotechnology sector within the country. Russia is economically strong, currently with a trade surplus, and the country is investing broadly in initiatives that have resulted in in-bound technology transfer, as well as an expansion of the private sector. These initiatives include government venture capital and investment funds, as well as physical technology “incubator” centers. The result has been an increase in the number of clinical-stage biotechnology companies operating in Russia, as well as an increase in the number of pharmaceutical candidates undergoing trials in the country. The biotechnology “boom” has also resulted in an increase in the number of early-stage companies. This paper investigates current deal and investment trends from the funds that are the principal supporters of biotechnology companies in Russia.
January 1, 2014 Comments Off on Funding biotech start-ups in a post-VC world Posted in: General Biotechnology Investment in start-up biotech. companies outside the USA has essentially disappeared. VC investment in biotechnology and healthcare as a whole has nearly returned to pre-2008 levels, but almost all is in later stage opportunities. But companies continue to be founded, and continue to flourish. We examine the VC investment patterns for the past 7 years, and show that a start-up today can expect little VC support. We show from companies’ financial records that companies are adopting financial models based on angel investment, grants and revenue, and moving away from business models that need substantial investment. There is a time lag, but government and research council policy is beginning to recognize and align with the new investment realities. We believe this trend will accelerate as internet-mediated angel investing, such as crowd-funding schemes seen in other sectors, become a developing force in the next decade.
