Guide to Venture Capital in European Biopharma

If you are managing a biopharma company, raising venture capital can be absolutely critical for the success of your company. The fund raising process should therefore be planned and carried out with the same level of seriousness and professionalism as any other serious business objective. This report is designed to speed up your VC raising campaign by distilling the information and knowledge you need to proceed efficiently.

Acting as a tool for planning and preparing your fund raising campaign, this report contains information that will help you understand the current investment climate, face the most critical issues for obtaining financing and help you understand how to localise and approach suitable investors. BioSeeker Group has analysed the latest developments and trends in the European Venture Capital market for life sciences. We present the financial strengths of investors, how they prefer to invest and what triggers them. We also describe the benefits vs. potential disadvantages of attracting multiple investors and trans-national investors.

BioSeeker has localised and listed 111 active venture capital investors in European biopharma. Further, we have mapped down the biopharma deals of these investors throughout 2002 until the end of August 2004. These investors, together with their contact data, investment preferences, biopharma deal structures, portfolio companies, recent biopharma co-investments etc. are listed in Appendices B and C. Using this unique and near-to-complete investment data, BioSeeker has conducted several trend analyses of investments in the European Biopharma Industry. General investment trends for this segment are discussed as well as trends in terms of platforms and indications targeted. So far, 2004 has been a very good year for the biopharma industry. According to BioSeeker's analysis, venture capital investments in this segment are expected to rise by more than 20% after two years of standstill. The total value of biopharmaceutical investments in the second quarter of 2004 are the highest in two years, and, for the first time ever, the total amount invested in European life science companies exceeded the amount invested in information technology in Q2 2004, according to Ernst & Young. The increased level of life science investments has partly been influenced by the once-again active life science IPOs in the U.S. and lately also in Europe. The question, however, is whether this development will continue? Although the re-opening of the IPO window surely is a positive sign in itself, recent life science IPOs in Europe have failed to raise as much as expected.

Trans-national co-investments between investors located in different countries are clearly increasing in Europe. BioSeeker believes this to be a very healthy sign. However, many issues remain for the European Biopharma Industry to be dealt with. BioSeeker believes that major consolidations, increased M&A and increased b2b-and pharma collaborations are still needed in order for the European Biopharma Industry to thrive.

The demands and preferences from VC investors can often seem contradictory. However, some general trends have been identified. Preferences in terms of company models, scientific fields and geography of major pan-European investors are analysed and discussed.

The "Guide to Venture Capital in European Biopharma" is the third edition of BioSeeker Group's monitoring program of the European Venture Capital Market in Life Science. It has been produced by working with, observing, and interviewing VC investment partners as well as management of life science companies.

This report will also be valuable for investors, who may use it to benchmark their biopharma investments to those of others and possibly for viewing the biopharma industry from another perspective.

This report will help you to:

Understand the VC investment market in biopharma and its latest trends and developments
Understand the VC community's view of the current biopharma market
Get a feeling for what a VC investor looks for when making a new investment and what "triggers" most investors today in biotech
Get a feeling for the trends in terms of platforms and indications targeted along those biopharma companies that have recently received VC funding
Prepare and present your company in a manner that may increase your chances of obtaining VC funding
Localise potential investors for your company in terms of investment stage preferences, company type preferences, co-investment preferences and geographical concerns
Benchmark your opportunities to receive funding