David Johnston Talks About Funding Strategies for Life Science Companies

Most CEOs of biotech companies struggle to find funding from investors. It is even harder for startups that are still trying to find their footing in the industry. Are you the CEO of a startup life science company looking for investors? Learn these funding strategies from David Johnston, the former CFO for DBJ Consulting LLC.

Look At What Creative Financing Options Are Available For Life Science Companies

One of the advantages you have is that there are many creative financing options to consider. Some of them include:

  • Equity financing
  • Grant funding
  • Pharmaceutical licensing
  • Merger and acquisitions

To choose the right financing alternative, you will have to factor in your company’s objective, stage, and many other things. For instance, equity financing is ideal for seed-stage companies. You can also apply for grant funding from government agencies.

Finding The Right Kind Of Biotech Funding

The cost of research alone is high. Even to begin a drug development, you will need access to labs, machinery, raw materials, and highly experienced scientists says David Johnston. Then you get to the clinical trial stage, and you also need funding. Keep in mind there are also FDA regulations to follow, and the last bit is marketing. Be smart when finding an investor. For instance, you cannot pitch a topic on medical devices to an investor that only deals with drug development. Look for investors that invest in companies like yours.

Have A Solid Financing Strategy

Understand that you are not just going to be given funding without any terms and conditions. Do you have a financial strategy in place about how you will use the money? Venture capitalists, government loans, angel investors, and many other investors have their own conditions. The initial investment you will get should be used to further develop the scientific data you have. This can help you attract new funding sources. With a solid financing strategy in place, you will manage to attract new investors at every stage until you get to the final stage, which is introducing your product or service to the market.

Looking For Biotech Experts

It can be difficult to obtain funding when you are a startup. You do not have much to show about any previous work, making it hard to secure an investor. How about reaching out to biotech experts? Your ideas are likely to make more sense to them because they already have some knowledge in the field. Even if they do not provide funding, a partnership will help build your reputation. It will enhance your company’s authority, and this can help you attract investors.

Partner With A University

Research the universities around your area that have biotechnology programs. This can be a good opportunity to get funding through partnerships. There are various life science companies that have succeeded through this method. This strategy is ideal if you are not ready to partner with an investor on a big scale. You will have access to lab space, faculty, and raw materials to develop your idea.

David Johnston has many years of experience providing financial advice to biotech companies. If you are the CEO of a biotech company looking for financial advice, get in touch with him today.

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