“Funding Early Stage
Biotechnology”
Personal Reflections of a European Investor
based in the UK and France
EBAN – 9th Annual Congress – Madrid
Alan Barrell, A Cambridge Angel and a Sophia Business Angel
27th April 2009
Funding Bioscience demands exceptional
talents, imagination and resolute perseverance
“You look at things
and ask - why?
but I dream of
things that never
were and ask why not?”
George Bernard Shaw
Charles Darwin – “Natural Selection Adaptability and Survival”
Darwin’s Bicentenary this year. A “Naturalist Entrepreneur”Messages for Biotechnology Entrepreneurs….
Darwin’s Theories -Natural Selection,
Adaptation, Symbiosis and Synergy
What works for
meat ants and
leaf hoppers
Can be true
for
Companies
and
Business
Models –
especially in
Bioscience
How the Early Stage Investment Market sources and
funds successful Biotechnology Companies
 NOT very effectively !.........
 With great difficulty…..
 No great track record…..
 Leaving lots of room for improvement !
 Three Cheers for President Sarkosy and French
Wealth Tax changes…..a silver lining in the clouds!
And Biotech IS Different….







Speciality – Complexity – Diversity
Long gestation periods means….
Very patient capital
Long time to market
High costs of R & D and Clinical Trials
High RISK profile
High and specialised skills requirement
Advice and Personal Opinions
 Don’t be phased by the current Financial Crisis – it’s
nothing new….
 “It was the best of times – it was the worst of times” –
Charles Dickens – A Tale of Two Cities - 1859
 Have you really got something special?.....
 Be organised and have a clear Business Model and
Plan
 Learn from past mistakes and failures
 Think seriously about Strategic Partnerships with
larger players – early if possible and safe
The Early Stage Business Balance – what do
investors look for? In ANY innovative company ? –
including Biotech – Entrepreneurs take note….
Inspired
Leadership
Creativity
Enthusiasm
Bullshit
Courage
Vision
Optimism
Management
Research &
Analysis
Caution
Process
Market
Knowledge
Financial Control
And they like to see experienced - Biotech. Smart
Chairman and Directors - Mentors for Innovative
Companies
More Advice and Personal Opinions
 Understand the complete $$$$ requirement to
exit….and the available $$$$ supply chain
 Work with early stage funders connected with the later
stage funds
 Take Darwin’s work to heart – Strategic Partners on
board early make a difference- Symbiosis is a Biotech
Characteristic
 If at first you don’t succeed…..try, try, and try again….
 Network, Network, Network, Network, Network – the
network again !......
Thank you for your attention….
More on my website –
www.alanbarrell.com
E-mail – [email protected]