thinkBiotech LLC

European Biotechnology Inventors Moving to America for Funding

 

Niagara Falls, NY -- (SBWIRE) -- 01/06/2014 -- New research published in the Journal of Commercial Biotechnology shows that investment in start-up biotech companies outside the USA has essentially disappeared.

“Getting investment is never easy, nor should it be” says Dr. William Bains, lead author on the study, “But since 2007 it has become almost impossible to get European investors to see the value in really visionary technologies. This is why Boston and New York are full of European scientists and entrepreneurs. Luckily, we retain enough imaginative businessmen in Europe to build businesses without the banks and venture capitalists over here. But today’s breakthroughs in medicine, renewables, fuels, materials, will be commercialized where there are investors who value the future. If I were a young, entrepreneurial scientist today, I would ‘go West’. “

Recent research led by William Bains examines biotechnology venture capital investment patterns for the past 7 years, and shows that a Cambridge-area biotechnology start-up today can expect little venture capital support. Further, the research indicates that companies are adopting financial models based on angel investment, grants and revenue, and moving away from business models that need substantial investment.

Government and research council policy is beginning to recognize and align with the new investment realities, and the study authors believes this trend will accelerate as internet-mediated angel investing, such as crowd-funding schemes seen in other sectors, emerges as a developing force in the next decade.

For more information, see "Funding biotech start-ups in a post-VC world" at http://CommercialBiotechnology.com

For Further Information contact:

Yali Friedman
Phone: 202-888-4440
email: editor@commercialbiotechnology.com