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CLSA Wire

Access New Funding Opportunities at CALBIO2012

Over the last few years, we have seen changes in market dynamics that are creating new challenges for emerging companies. As investment by traditional sources such as venture firms decrease, we continue to explore alternative funding options for our members.

At our recently convened panel “Fundraising in Troubled Times,” representatives from industry, venture capital and angel firms discussed the challenging capital access landscape, the increasingly competitive global market and funding sources.

They recommended a broad range of options including Private Investments in Public Securities (PIPEs), reverse mergers, super angel funding, smaller venture capital rounds, sovereign wealth funds, federal government grants, and debt financing.

The panel confirmed what we have been seeing for the last six months, investments in emerging life sciences companies are declining. According to the MoneyTree Report by PwC and the National Venture Capital Association (NVCA), Seed Stage investments dropped 48 percent compared to the prior year. Essentially, VCs are putting their resources into later stage deals.

I agree with the panel on another key point. Corporate venture capital is funding more early stage development. This funding source may be a new avenue for many companies.

To help our members make crucial funding connections with corporate venture funds, we are increasing their presence at CALBIO2012, March 8-9 in San Francisco. CALBIO2012 provides access and introductions to major pharma dealmakers including Sanofi, Amgen, Genentech and more.

Increasingly, NGOs and disease foundations are funding innovation. In a recent California CEO survey conducted by PwC, BayBio and CHI, the number of companies pursuing disease foundation funding in the next two years tripled.

CALBIO2012: Driven by Patients provides opportunities to meet with NGOs and disease foundations. Attendees can connect with funders at the Partnering Forum or throughout the conference.

To maximize connections through the Partnering Forum, we are using the BIO One-on-One Partnering matching platform. Many of you have already created profiles and descriptions using this technology.

The industry is facing new, complex challenges around capital access. BayBio can help you successfully navigate the new funding landscape. Visit www.CALBIO2012.com for more information and registration.