Columbia University GSAS BIOT 4180

Entrepreneurship in Biotechnology

Columbia UniversityGraduate School of Arts and Sciences

BIOT 4180

Columbia University GSAS BIOT 4180

Week 5

Funding

Columbia University GSAS BIOT 4180

The Funding Cycle

Columbia University GSAS BIOT 4180

Financial Projections(from business plan)

• Addressable market– Market size– Revenue projections

• Product life cycle• Market exclusivity• Terminal value• Discounted cash flow calculations

• The ability to borrow money depends in large part on the accuracy with which you can predict future cash flows

Columbia University GSAS BIOT 4180

Discounted Cash Flow

Columbia University GSAS BIOT 4180

Time horizons for positive cash flow generation

• Service business• Franchises• Software• Light manufacturing• Heavy manufacturing• Exploration• R&D, regulation

Columbia University GSAS BIOT 4180

Funding cycle

• Seed capital• Angel investors• Venture capital– Early stage– Late stage

• Public offerings• Non dilutive funds– Grants– Business development: cash from partnerships

• Product revenues and profit

Columbia University GSAS BIOT 4180

Columbia University GSAS BIOT 4180

Columbia University GSAS BIOT 4180