Crowdfunding Drug Startups Still Iffy

The University of British Columbia study suggests that crowdfunding may be a way to provide seed capital to risky pharmaceutical and/or disease diagnostics startups.

Reviewing 97 campaigns, it was determined that average donations ranged from $59 to $199 on seven of eight crowd funding websites; donations on the other site averaged $1,369. The average number of donors ranged from about eight to 703, while fundraising goals ranged from roughly $6,900 to nearly $343,000. And the mean amount of money raised in each campaign was more than $45,600.

The authors conclude that “that the very modest amounts raised by some campaigns suggest that crowd funding will not become a substitute for government funding. And raising money for rare disease research may prove difficult, because many donors are motivated to support research in which they feel they have a personal stake in seeing new treatments.” But it’s worth a try.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Charity, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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