European Life Sciences Companies Turn to Crowdfunding

crowdfundingAccording to a new report, European life science companies are finding crowdfunding to be a good means of raising quick cash, if not a replacement for angels or VCs. ‘Analysis of Crowd-based Financing in European Life Sciences’ by German market analyst Biocom AG states that since 2010, 42 companies raised almost €23M through online crowdfunding campaigns. Lead author Sandra Wirsching claims, “With respect to the high capital demand in the life sciences, it was only a question of time before firms jumped on the bandwagon of crowd financing.”

“This highlights a key avenue for many life science startups,” says Zintro expert Rania Nasis, a management executive in the areas of healthcare, life sciences, investments and the emerging field of equity crowdfunding. “It lets them reach a much broader audience of investors, especially ones that might be personally affected by the disease the company is targeting–maybe Parkinson’s runs in your family, etc. And Europe, once again has taken the lead in the crowdfunding space. Life science companies haven’t yet met the same success crowdfunding in the U.S.”

Zintro expert Sumant Chaubey has 18 years of biopharma process experience. He explains, “Crowdfunding is more practical, very realistic and a longer sustainability investment approach–slowly growing in developed countries but rare in Asian countries. I am very optimistic for its predominance over VC by 2020.”

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