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Funding a new biotechnology firm - Assignment Example
In this briefing paper an attempt has been made to identify best possible funding pathway for a start up biotechnology firm. For this purpose, different types of finance sources have been defined and evaluated…
After exploring and analysing the current market situation along with the funding history, it can be concluded that the existing financial and market situation has made it difficult for the start-up business to acquire funds from the external sources and there have been increasing financial gap. Apart from this there is increasing uncertainty among the entrepreneurs about the approval of the applications for funds. All this information and data implies that the new biotechnology firm should first go for internal sources of funds and the group of entrepreneurs should pool in the available money. Then, the remaining funds should be financed through the venture capitalists firms. Venture capitalists firms are ready to facilitate the new innovative business in the process of collecting required funds and finance. Also, these firms ensure a successful exit strategy and provide the entrepreneurs with their valuable insights and opinions. As the venture capital cycle turns bigger and stronger in this way, institutional investors might be tempted in this new venture which beneficial to further growth. In the third stage the biotechnology firms can go for Initial Public Offering.