Harvard i-lab |One size does not fit all - Financing in the Health and Sciences Market | Summary and Q&A

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February 18, 2015
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Harvard Innovation Labs
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Harvard i-lab |One size does not fit all - Financing in the Health and Sciences Market

TL;DR

Life sciences startups require significant funding, with drug development companies typically needing over a billion dollars over a span of 10 years. VC funding is common, but angel investors and grants are also viable options.

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Key Insights

  • 🛟 Life sciences startups in drug development require significant funding over an extended period of time.
  • 🔠 Venture capital firms bring expertise, networks, and capital to startups, but the terms of the deal need to be carefully considered.
  • 🙈 The valuation of a startup is a critical factor in negotiations with investors, and market-driven valuations are often seen as more reasonable.
  • 😤 The team's expertise, technology, potential market, and dedication are crucial considerations for investors.

Transcript

i am as alice mentioned a partner at the law firm of willmar hale we're a global full services law firm my focus is on representing emerging companies and in particular in the life sciences space and that can be drug development companies medical device companies including diagnostic companies and then other forms of companies that people often thr... Read More

Questions & Answers

Q: What are some common types of life sciences startups?

Life sciences startups can include drug development companies, medical device companies, diagnostic companies, and healthcare technology companies.

Q: What is the typical amount of funding required for drug development startups?

Drug development startups typically require over a billion dollars over a period of 10 years, with funding needs varying depending on the indication and clinical trial requirements.

Q: What role do venture capitalists play in funding life sciences startups?

Venture capitalists provide substantial funding and expertise to startups, helping them navigate the complex landscape of drug development, clinical trials, and commercialization.

Q: Are there alternatives to venture capital for funding life sciences startups?

Yes, startups can also seek funding from angel investors, government grants, and other non-dilutive funding sources to support their research and development efforts.

Q: What are the key factors investors look for in life sciences startups?

Investors prioritize factors such as the expertise of the team, the innovative technology or product, the potential market size, and the ability to generate a return on investment.

Summary & Key Takeaways

  • Life sciences startups in the fields of drug development, medical devices, diagnostics, and healthcare technology require substantial funding.

  • VC funding is a common choice for startups, with series A funding typically ranging from $20-30 million.

  • The success of fundraising often depends on factors such as the team's expertise, technology or product, target market, and potential for return on investment.

  • The negotiating process with investors can involve discussions on valuation, control, and board composition, with market-driven valuations often seen as more reasonable.

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