| A biotechnology company and its management have many challenges to face these days. Research projects and the business of the company should constantly progress, but at the same time research-oriented companies need to have balanced finance for expensive research projects. It is often the case that when one financing round is completed the management has to begin planning the next. Private equity investments as well as public subsidies are often the only finance available to start-up biotechnology companies. Loans and credits from banks or other financial institutions are often too expensive sources of financing for these companies. Moreover, start-up biotechs rarely possess the necessary assets to be used as security for the bank's financing. In such cases, venture capital finance plays an important role for biotech companies. |
