Scale up event November 21, 2017 15/05/2017 Johan Cardoen.

Slides:



Advertisements
Similar presentations
Go-to-Market Strategy
Advertisements

Fundraising. Starting and growing a business always require capital. There are a number of alternative methods to fund growth. These include the owner.
1. Introduction 2. Funding Instruments 3. Public Funding 4. Support from Banks 5. Private Equity Investment 6. Venture Capital 2.
1 EMERGING ENERGY & ENVIRONMENT, LLC TOWARDS A LOW CARBON ECONOMY: THE ROLE OF PRIVATE EQUITY FUNDS BY: JOHN PAUL MOSCARELLA Emerging Energy & Environment,
Europe’s Failure to Innovate: Is the venture capital industry to blame? Colin Mason Hunter Centre for Entrepreneurship University of Strathclyde Presentation.
Entrepreneurship I Class #3 Financing the Venture.
© Finance Tree ltd, 2010 Introduction to Finance for start-ups 18 October 2010 Jonathan Gold
Module 4 The Search for Capital. Module 4 Topics Sources of Capital Background Start-up Ongoing Operations Growth.
Biotechnology The Israeli Case Definition Using living organisms, cells or biological agents, to produce goods and services. Modern biotechnology arose.
Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002.
Formulate an Offer Stephen Lawrence and Frank Moyes Graduate School of Business University of Colorado Boulder, CO
Entrepreneurship I Class #3 Financing the Venture.
© 2006 G. Yelle. All rights reserved. Why Do Ventures Need Financing.
Flinders Technologies Pty Ltd Copyright © 2002 J V Turner WIPO/INV/BEI/02/7.a Universities and R&D organizations are potential sources of valuable intellectual.
Venture Capital Issues With more slides on valuation.
VENTURE CAPITAL IMPORTANT SOURCE OF EQUITY FOR HIGH GROWTH COMPANIES.
Practical Fund Raising (for a hi-tech startup) David Moore QUBIS Ltd QUBIS Ltd - ‘Turning Research into Wealth’
Entrepreneurship in Biotechnology Columbia University Graduate School of Arts and Sciences BIOT 4180 Columbia University GSAS BIOT 4180.
Equity Financing for High Growth
Funding for Life Sciences – how, when and where to get money from Dr. Patrik Frei August 2012 | ENIFarMed, Brazil.
Presentation by Dr. Andreas O. Tobler November 5, 2009.
Advanced Managerial Finance Spring Venture Capital It refers to the capital provided to early stage, high potential, high risk, growth startup firms.
TTCSI VENTURE CAPITAL WORKSHOP Jason Julien, CFA THE ART OF BUSINESS: UNDERSTANDING VENTURE CAPITAL August 22, 2014.
©2007, The McGraw-Hill Companies, All Rights Reserved Chapter One Introduction.
Chad Barden Financing Options for Entrepreneurs. Discussion Overview Available Options Venture Capital Private Equity (Angels) Grants Strategic Partners.
Managing Entrepreneurship and Innovation 4. Financing the Venture.
CEO Ventures Entrepreneur Resources... How Do Venture Capitalists Select Investments? Full content credits to Catharine Merigold.
16-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 16 Managing Finances.
INFORMATION TECHNOLOGY ENTREPRENEURSHP Elikem Nutifafa Kuenyhia Management Consultant & Corporate Lawyer CLASS SEVEN: ACQUIRING FINANCIAL CAPITAL.
Strategic Innovation Management Prof. Marc Gruber January 27 th, 2011.
© Finance Tree ltd, 2013 Raising investment 16 October 2013 Jonathan Gold
To be the portal to relationships and resources for high tech and high growth ventures V ENTURE P OINT’s M I S S I O N...leading to their success and wealth.
Investment Supply for SMEs Ana Marr and Charles Chiwara June 2011.
1 1 What Do I Do Now? - Going Public vs. Selling Out Applying Concepts from Finance to the Public Equity and M&A Markets November 14, 2002 Mark Satisky.
Finance for innovation and growth UNECE Helsinki, 3 June 2010 Vesa Vanhanen.
Funding Structures some ideas for designing innovative funding instruments Brigitte Hatvan.
1. Our Mission is to foster jobs and wealth creation in California by connecting innovative entrepreneurs, growth companies and market leaders with capital,
Dr Caroline Barelle MBA Giving birth to a biotech where’s the pain relief ?!
Venture Capital and the Finance of Innovation [Course number] Professor [Name ] [School Name] Chapter 1 The VC Industry.
# MCL 0 Today’s Venture Capital Environment Ted R. Woolschlager Director, Emerging Growth Markets Mid-Atlantic Area Ernst & Young June.
Activist Growth Investing Aswath Damodaran. The faces of activist growth investing Unlike activist value investing, which is usually directed at mature.
By- Rahul Jain Venture Capital Financing. 2 What Is Venture Capital? High Risk Capital Seeking 50%+ Annual Rates of Return High Risk Capital Seeking 50%+
Financing High Growth Ventures ETP Courage: Risk and the Dimensions of Work Life Cycle of a Business Venture Bootstrapping Self, Friends and Family.
Ch 15 Raising Capital. 1. Financing life cycle of a firm: Early stage financing and venture capital Usually people with ideas contact banks at first.
The Private Equity and Venture Capital Industry
Chapter 19 Managing growth and harvesting. Learning Outcomes On completion of this chapter you should be able to: Distinguish between the various life.
TECHNOLOGY COMMERCIALISATION WORKSHOP Level 1 Business Modeling & Financing for Technology Start-Ups Rashidan Shah Abdul Rahim.
© Copyright Job Search Digest An Overview of Private Equity Careers.
“Managing a Startup in Turbulent Times” Satellite Broadcast Presented by Fred A. Middleton General Partner Sanderling Ventures June 6, 2001.
6/22/2016 Prepared by Prof G Sabarinathan, IIMB. All rights reserved. 1 Course Coverage Investment and Capital Budgeting Routine CapEx Growth CapEx Expansion.
Presentation by Dr. Andreas O. Tobler October 19, 2010 Tento projekt je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.
IMPROVING ACCESS TO FINANCING FOR SMEs JEREMIE Initiative Evgeny Angelov – Deputy Minister Economy, Energy and Tourism.
Gaynor Dykes Grant Thornton
Venture Capital Guiding Fund for Technology-based SMEs
Day 5: Team Formation and Roles
Israel - Colorado Innovation Fund
Initial Public Offerings
…. the Angel Perspective
Consultation on the Finance Sector Supplement to the Natural Capital Protocol This project has been made possible by generous funding and support from.
Consultation on the Finance Sector Supplement to the Natural Capital Protocol This project has been made possible by generous funding and support from.
Diffusion Capital Partners
تأمین مالی طرح‌های خطر‌پذیر
Where Economic Development Meets Venture Capital: Impact Investing
العوامل المؤثرة على اتصالات الأعمال
Business Plan Preparation
Financing a business.
Chapter 13 How companies raise capital
Registration No. Contact Details of Applicant Startup Pitch Deck
What Do I Do Now? - Going Public vs. Selling Out
Financing Stages (Mining)
Presentation transcript:

Scale up event November 21, 2017 15/05/2017 Johan Cardoen

Financing life cycle of a biotech company CASH-IN TIME VCs, Acquisitions/Mergers & Strategic Alliances Angels, FFF Seed Capital Early Stage Later Stage Mezzanine 3rd 2nd 1st IPO Public Market Secondary Offerings Public Company Operating Cash Flow Found NewCo Validate concept Complete business plan TT funds Sales POC in place Concept Product support Additional clinical data Prototype/ Research Product development Product introduction

Value creation process in therapeutics Long term, high risk Value creation process in therapeutics Long term, high risk* and capital intensive Value inflection point *overall POS: 8%

Biotech start-ups: business models Platform companies Asset-centric companies Drug Discovery platform: LLC model Combination of assets

Biotech platform companies Discovery/Technology platform is the differentiator and back bone Risk spreading: many shots on goal, suitable for deal making Long timelines towards main value inflection point First platform development and validation Develop proprietary pipeline High capital needs Therapeutics, diagnostics and agbio

Asset-centric Asset is the differentiator and key value driver Single shot on goal Binary: high risk, high gain Less capital intensive – but still long timelines “Build to Buy model”

Company age at time of acquisition per sub-sector Source: Kempen 2017

Biotech in Europe: current financing climate Start-up financing: overall positive Many VC funds raised successfully new funds over the past 3-4 years Many VC funds (also US based) scout actively for dealflow in EU Despite more IPO activity in the US (at higher valuations) – there are several biotech-friendly stock markets in EU (Euronext, LSE, Swiss Exchange, CSE...)

Scale-ups in Biotech: challenges Significant capital required to finance a biotech (therapeutics) company towards a ‘cashflow-positive’ position Biotech investors are mainly VC funds-most closed-end funds (typically 10 yrs) High financing needs push sometimes companies pre-maturely towards exit mainly through a trade sale Biotech-friendly stock market is key for biotech companies to fuel path towards sustainability EU lack growth equity funds compared to the US More and more EU biotech have dual listing

Scale-ups in Biotech: opportunities Availability of growth equity in EU could contribute to move many EU biotech companies towards a sustainable biopharma company (e,g, in US Amgen, Celgene, Gilead, Vertex, Biogen etc...) Increasing liquity on EU stock markets for listed biotech companies prevent the risk of shifting the strategic decision center to the US