Is Equity Crowdfunding Better For Biotech?

One comentator thinks that equity crowdfunding may be a better fit for biotech firms because the scientific community has criticized rewards-based campaigns for promising a product that doesn’t exist except as a hypothesis and that would require regulatory approval.

In addition, most funding for biotech is needed upfront as replication of the product is not as capital intensive as invention.

Also, biotech venture capitalists are looking for products that can scale quickly without regulatory approval. He thinks that crowdfunding will democratize the use of genetics away from the mega-corporations.

http://venturebeat.com/2016/06/12/equity-crowdfunding-can-do-for-biotech-what-kickstarter-did-for-hardware/

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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: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Dodd Frank, Film, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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