Early-stage funding for proof of concept is best funded by venture capital. Does your company need funding for the next stage of growth? Venture capital can continue the life of your concept. Venture capital funding typically starts with $500,000 and shows a degree of segmentation around technologies, services and/or modalities.
Private equity connects the highly trained financial industry with the capital intensive funding required for biopharma manufacturing. More than 50% of all CDMO's are now funded by private equity. The highly educated and efficient business executives that run private equity bring great value to a manufacturing operation that is looking for growth or operational funding. Private equity typically starts once a company has $3 million in EBITDA.
Before venture capital and before private equity funding comes private placement, the first money in to fund a startup is sometimes called an angel investment. Private placement investment has the greatest risk yet can be the most rewarding as a company takes flight and builds the story. There is no minimum with private placement, but it is usually collected from friends and family alongside high net worth individuals.
Have you considered selling your business? Do you know what the comparable companies in the market have received at close? What steps do you need to take to maximize your return on investment and how does economic timing play into your divestiture?
Organic expansion is slow, technology or capacity acquisition is the only way to grow a business when lofty goals have been requested by your board of directors. That's Nice scans the market for pre-growth opportunities, making sure you do not overpay for new opportunities.
Capacity and technology expansion are much faster through acquisition. Regional expansion and competitor consolidation can be achieved for targeted facility acquisition. As big pharma divests under-utilized facilities around the world, over build, long-term take or pay supply agreements are available in most developed countries
Disclaimer: That's Nice LLC is a life science focused agency providing strategic marketing, market research, business consultancy services, along with advisory services and strategic networking to the life science industry. We do not provide services that involve financial brokerage, investment advice or any other financially related investment services. For purposes of clarity That's Nice LLC is not registered by the SEC or FINRA.