Posted by: Dr Churchill | October 3, 2015

Biotech Capital in 5 simple steps

The landscape for Biotechnology funding in the United States has never been better…

Yet it has never been worse either…

Here are both stories for You.

It’s no secret that the Biotechnology industry has seen rapid growth in venture capital investment in recent years, and the chart below shows quarterly funding activity for the industry from Q1 2008 to Q2 2015:

Screen Shot 2015-10-03 at 12.04.25 PM

The rise in funding can be generally attributed to a favorable exit environment for investment, due to five major factors.
1) It is generally believed that big Pharma is looking to restock its dated pipeline of blockbuster drugs and is looking for the best candidate companies to acquire.
2) Naturally the IPO environment for promising clinical stage biotechs, when not shut due to macro market concerns, has been extremely favorable to StartUp Biotech firms.         3) The FDA approval process has become far more flexible and the time to approval has been significantly shortened thus allowing for the StartUps to finally have a chance at accelerated development still congruent with the burn rates of VC funding within the lifecycle of the 7 year Funds.                                                           4) Biotechnology companies continued advances in information technology, big data, IoT, and Cellular therapies with genome sequencing — prove that the industry has a bright future ahead of it.
5) Angel Investor interest in Biotech has increased massively and that makes for an easy inroad to the VC institutional investors table…

Dr Kroko

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