Biotechnology Capital Raising – Choose Your Locations
Many biotechnology start-up companies are able to raise investment capital much more easily because of their location strategy. For entrepreneurs, relocating to a location where the market has the immediate need and also understand your product is important.
Here are some interesting analyses we have compiled why location is an important factor for your capital raising strategy.
1. Close to your target end-markets – this will be much easier to raise capital. For instance, we have seen liver cancer treatment companies setting up in Asia purposely, as that is a major concern in Asia, or skin-cancer products setting up in Australia, or European and Australian diabetics R&D companies relocating their headquarters to US by being close to their target markets.
2. Investigate what grants are available in respect to your R&D and move your HQ there, as different States and Governments provide different types of funding.
In Australia, for instance, skin cancer developments are given top priorities because it is a major issue there. In US, anything relating to weight control or diabetics or heart disease can raise capital from investors and also from different grants.
In Japan, it is stomach cancer that receives highest priority from Government and investors. In Taiwan, the government has adopted a new strategy to push E-health as their next focus medical industry, and new funding has been allocated for any company that wishes to develop e-health opportunities in Taiwan.
3. Investigate into what grants and assistances are available in terms of setting up R&D facilities and laboratories.
Certain States in US, such as Massachusetts, California, Washington; and increasing number of southern states that wish to push biotechnology as their major economy industry.
You can also see specific private-public investment vehicles in Indiana, North Carolina or Texas as examples where they will co-invest into the company as well as setting up R&D facilities.
This is also the same concept in Germany, such as Bavaria where the Government will co-invest into setting up medical facilities, also in UK and other European countries. Israel and Arab countries have adopted similar programs recently as well.
4. Setting up an operation in Asia & South America could be beneficial as well in reaching out the fast growing markets in Asia, as well as granting faster approval from respective Asian & Latin American markets. Good locations are Singapore, Hong Kong and even India, this will also assist in raising investments from Asian investors.
In South America, Argentina and Brazil are both popular destinations for new products testing and commercialization.
5. Collaboration with universities – another interesting point is if you establish your operation closer to major universities with focus in biotechnology & life science.
By setting up your location in these regions, you are more likely to work with them in terms of sharing the facilities, as well as receiving funding from university backed venture capital funds.
Some of Australian and Canadian biotechnology firms have relocated to Boston or other parts of the United States for this reason; universities can also assist new researches in terms of commercialization.
6. Establishing your business in “Biotechnology Hubs”, there are a number of major international biotechnology hubs – these are cities with a large number of healthcare or pharmaceutical companies, and this is typically where biotechnology venture capital funds are also concentrated. Well known destinations include Boston, San Francisco, San Diego, North Carolina, Switzerland, Germany, UK, Japan, Israel and some cities in China & India.
So next time you are considering setting up a new facility or capital raising for your biotechnology projects, it will be worthwhile to do some investigation to find out what locations are ideal for you.
Check out our Global Biotechnology Capital Providers Guide on http://researchwhitepaper.com with information on 1,000+ biotechnology venture capital & private equity investors.
