• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

BioStartup Advice

  • Simulations
        • A Day in a Life: Exploring the biostartup possibility
        • Steps to a Startup
  • Read More
        • Read More:


        • Women Life Scientists as Entrepreneurs
        • Communication Skills for Women Scientists
        • Contemplating Entrepreneurship
        • Early Funding
        • Starting a Life Science Business
        • Basics of Intellectual Property
  • About
    • About BioStartup
    • About Us
    • Contact
  • Self-Check
  • Resources
    • Resources
    • Glossary
    • Blog
          • Topics:

          • Category:

          • Sort By:

          • Clear Filter
        • Resources | Tips | Case Examples
Home › Topics › Steps to a Startup › Develop a Business Plan

Jayla Williams, Mandy Jones, Sarah Johnson, Sasha Thomas

Venture Capital and Other Funding

Topics Steps to a Startup Develop a Business Plan Venture Capital and Other Funding
Menu
Instructions
Develop a Business Plan

7/8

Venture Capital & Other Funding

Stories
Key Points
Challenge

This experience is not optimized for mobile.
Please use it on a desktop computer or tablet for a better experience.

Browser Compatibility

Funding Source Options Beyond Government Seed Money

Startups need funding to continue developing technology after the seed money is exhausted. The time until your company starts generating revenue is a vulnerable time sometimes called the “valley of death” because of the potential to run out of money. You need money for approvals, marketing, and unexpected expenses. Identify potential funding sources ahead of time, including rapidly available sources.

Funding options include:

  • Angel Investors) – These individuals who provide capital to business startups must have high net worth to qualify as an accredited investor. They usually invest early in development, in exchange for preferred shares or partial ownership of the company.
  • Venture Capital – VC is funds provided to a startup that investors think has long-term growth potential. The investments are made in return for significant ownership of the business. Investors look for indications that there will be a high rate of return, such as a strong market, product/service competitiveness, superiority, and innovation. Investors want to know strategies that will allow them to make a profit, such as whether you plan to sell the business or sell stock shares to the public (IPO).
  • Accelerator – A group or individual that connects startups with mentors, resources, funding, and training for a limited period to advance a startup’s growth. Accelerators offer connections, advice, and acceleration of time to market. Disadvantages are that you lose some control in decision-making and the accelerator typically gets equity in your company.
  • Startup Loan – Banks are more likely to lend money to companies with solid business plans, financial projections, and expense sheets. The Small Business Administration guarantees loans for some small businesses having trouble securing bank loans.
  • Foundation Grants – These include organizations that raise money to help cure or treat specific diseases or groups of people. They may provide funding if your product or service potentially benefits their cause.
  • Friends and Family – Think carefully about mixing business and personal relationships, since divergent goals may cause conflict and tensions and may make investing less attractive to others.
  • University (or other institution) Internal Investment Funds – If you are employed by a university or similar institution, there may be internal investment funds available in exchange for equity in your business.
  • Partner with an Existing Company – Many biotech startups partner with established corporations that have an interest in the product being developed. They may buy out the company after the product is successfully developed. This is common practice for Pharmaceutical companies.

(Adjogatse 2022; Excedr 2022)

References

Adjogatse E, Hernandez B. How to find investors for your biotech startup. Probacure.com. September 2, 2022.

Excedr. Biotech Funding for Startups: What are Your Options?Excedr. June 14, 2022.

To Make Your Business Attractive to Investors:

  • Find ways to gain investors’ trust in your ability to succeed and in your management team. Show your ability to inspire others and execute plans.
  • Show progress in the milestones that are most important to your potential investors. These are often milestones that reduce risk or bring in money.
  • Avoid family or other non-accredited investors who may need to get their money back for personal reasons when it might hurt your business.
  • Seek clear ownership of your intellectual property (IP) through patented technology. Avoid infringing on the intellectual property of others.

(Castrillon, 2019; Morgaine, 2016)

References

Castrillon C. How To Make Yourself Attractive To Small Business Investors. Forbes. November 10, 2019.

Morgaine B. 11 Foolproof Ways to Attract Investors. Bplans Blog. March 21, 2016.

Tips:
  • Look for courses on how to be an “investor-ready entrepreneur.”
  • Attend meetings where investors talk with people in your industry to look for investment opportunities. Prepare a brief pitch (elevator pitch) and have lots of business cards available.
  • Learn everything you can about potential investors before meeting with them.
  • If you want to sell your company to pharma or other large business, attend conferences where these companies meet with biotech startups.
  • Once you have investors, involve them in your financial plan.
Read More:

Financial Planning

See More

Challenge:

Life Sciences/Biotechnology – Investor Conferences

Life science startups often make vital connections with potential investors, strategic partners, or companies interested in acquiring technology at conferences specifically organized for this purpose.

To learn more, try taking a look at these examples:

Biotech Showcase 2023 – Provides biotechnology and life sciences companies the opportunity to network with potential investors and executives from companies that may be interested in buying a company.

Life Sciences Summit – Connects emerging biotech companies with early-stage investors to find capital and strategic partners.

Redefining Early Stage Investments (RESI) – Conferences to connect startups in the 4 Ds (drugs, devices, diagnostics, and digital health) with early-stage investors.

Connections:

Pitching Your Business

See More
Prev
Home
Next
Login to Take Notes

Take Survey

Usability Testers: Spend at least 20 minutes exploring, then take the survey above.

Previous Article
Back to Sub-Topic
Next Article

Primary Sidebar

Topic Home Expand All
Explore Motives & Skills Needed
3 Articles
Motivations for Starting a Business
Life Impact of Starting a Business
Skills Needed to Start a Business
Develop a Business Plan
8 Articles
Business & Product or Service Descriptions
Business and Management Structure
Seek Professional Assistance
Market Research
Financial Analysis and Projections
Seed Funding
Venture Capital and Other Funding
Product or Service Development & Marketing Plan
Set Up Your Business
4 Articles
Establish the Business
Registrations Required for Government Funding
Biotech/Biomed Industry Unique Requirements
Pitching Your Business
Return to Steps to a Startup
End Resources

This project is funded by National Institute of General Medical Sciences (Grants 1R43 GM131458-01 & 2R GM131458-02)


  • Contact
  • Copyright & Reproduction Guidelines
  • Privacy Policy
  • Terms of Service
  • Technology Requirements
  • 508 Compliance

Footer

a product of
Health Impact Studio
a division of Clinical Tools, Inc
  • Simulations
  • Contact
  • About
  • Blog
  • Facebook
  • LinkedIn
  • Twitter
feedback@clinicaltools.com

101 A Market St Chapel Hill, NC 27516
919-960-8118

We're Hiring!

Join the Development Team!

© 2023 · Clinical Tools, Inc · Log in

We hope that Steps to a Startup enriches your career and understanding of how to start small businesses in the life sciences.


Review or download materials from the experience:

Click “Review or Download Key Points” to access Key Points, References, and Tips plus links to “Read More”, External Resources, and glossary terms and definitions from Steps to a Startup. Click “Your Notes” to access any notes you took.

Review or Download Key Points
Your Notes

Other Options

Role-play another simulation on Biostartupadvice.com:

A Day in a Life: Exploring the Biostartup Possibility

Role-play a day in the life of a woman scientist who explores starting a business by talking with colleagues and attending a networking event.

What comes next after starting a business? Learn about later stages of starting a business:

Review this List of external resources that describe the stages of starting a business, from starting stages to established, mature product stages.

Instructions:

Navigating the Steps: Start navigating the steps by clicking on the steps map on the home page.

Index/Progress Meter

Then use the index/progress meter at the top of the page to move between steps. The index shows where you are in the 15 steps. Hover your mouse over a step to view its name. The steps are divided into three, color-coded sections. You can navigate the steps from the Start to the End or skip to any section or step that interests you. Alternatively, use the Previous and Next buttons on the left and right at the bottom of the page to move between steps or to the next section. Click the home icon at the top of the page if you wish to return to the full map of the steps.

Stories Tab: The stories tab will open by default first in each step. To “talk” with the characters, follow these instructions:

  • There will be one to three characters available in each step. Click on any character to speak with them.
  • You may see more than one choice for what to ask a character. Click on the question you want to ask to view their response. Use the arrow buttons on the left and right below the character to move forward or backward within the conversation. The number of dialogue passages for each character is displayed between these arrows. Keep clicking until the character’s response to your question ends.
  • You may ask another question of the character if there are more questions available.
  • Close out of the active character by clicking on the “X” in the upper right corner.
  • You may click on and interact with another character if more than one character is available in the step.

Key Points Tab: Click on the Key Points tab to review key points, tips, references, other resources, and links to Read More information on the step. Links all open in a new tab so you will not lose your place. All Key Points content is offered in a PDF that you can read or download on the last step (“The End”) at the end of the steps map. 

Challenge Tab: Click on the Challenges tab to either apply what you learned already in the Stories and Key Points or learn something new.

Definitions: (Optional) Hover over blue highlighted terms to learn their definitions. There is a link to the full glossary in the last Step (“The End”).

Take Notes: Log in to use the notepad on the lower right. You may download and save your notes at any time or access them via a link in the last step (“The End”)

Download or View a PDF: All of the content on the Key Points Tabs is available to view or download in the last step (“The End”).


Review “Browser Compatibility” beneath the simulation if you are experiencing any issues.

Instructions:

Overall Game: Navigate the steps in order by clicking the Next button on the upper right between steps. Alternatively, click on steps in any order that interests you. The “Map” button at the top of the page will open an index based on the Map on the first page, which will allow you to navigate to another step. Alternatively, click on the home button to return to the first page Map.

Forgot Password?
Register New Account
Sign up for our Newsletter!

  • Hidden

Register

"*" indicates required fields

Name*
Consent

Topic Content

Expand All
Explore Motives & Skills Needed 3 Articles
Expand
Sub-Topic Content
0% Complete 0/3 Steps
Motivations for Starting a Business
Life Impact of Starting a Business
Skills Needed to Start a Business
Develop a Business Plan 8 Articles
Expand
Sub-Topic Content
0% Complete 0/8 Steps
Business & Product or Service Descriptions
Business and Management Structure
Seek Professional Assistance
Market Research
Financial Analysis and Projections
Seed Funding
Venture Capital and Other Funding
Product or Service Development & Marketing Plan
Set Up Your Business 4 Articles
Expand
Sub-Topic Content
0% Complete 0/4 Steps
Establish the Business
Registrations Required for Government Funding
Biotech/Biomed Industry Unique Requirements
Pitching Your Business

Browser Compatibility

This simulation is optimized to be used in Chrome and Safari web browsers. It will not work correctly if using the “private browsing” features of your browser.

You may experience slowness if you use the Firefox browser.

If you would like to use the simulation in Edge, you’ll need to open Edge, go to “Settings” within Edge, and choose –> Privacy, search, and services –> Tracking Prevention –> and choose “Basic”.

Login
Accessing this topic requires a login. Please enter your credentials below!

Lost Your Password?
Register
Don't have an account? Register one!
Register an Account

Registration confirmation will be emailed to you.