As any entrepreneur will tell you, raising money is an indispensable part of all stages of a company’s life cycle. Due to the unique demands of biotechnology, entrepreneurs in this sector face a number of unique fundraising challenges.
To overcome fundraising obstacles, biotechnology entrepreneurs have begun using crowdfunding more and more in recent years. A popular alternative to more traditional funding sources, such as universities, crowdfunding relies on social influence and networking to raise money. While crowdfunding is commonplace for most tech entrepreneurs, biotechnology entrepreneurs with an academic background may not feel as comfortable in this arena. Nevertheless, crowdfunding has the potential to help entrepreneurs grow their companies on their own terms.
Another useful fundraising source for biotechnology entrepreneurs involves corporate incubators, which support small biotech companies. Although some incubators ask for an ownership stake in the company, many do not require any type of equity investment. Entrepreneurs using this funding method benefit from state-of-the-art research facilities, as well as networking opportunities with fellow entrepreneurs.
