early stage funding for biotechnology ventures-jan 2003 sarath naru the biotechnology venture fund...

Download Early Stage Funding for Biotechnology Ventures-Jan 2003 Sarath Naru The Biotechnology Venture Fund Ventureast Tenet Fund APIDC – Venture Capital Fund

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  • Early Stage Funding for Biotechnology Ventures-Jan 2003 Sarath NaruThe Biotechnology Venture FundVentureast Tenet FundAPIDC Venture Capital Fund

  • Post Lunch Wake-up CalisthenicsIf you are offered equity funding of Rs 1 crore from a reputed Venture capitalist, and your Institution gave a sabbatical, would you venture out?If you were offered a crore by the same VC but have to leave the Institution, would you venture out ?If you were offered a crore by your dot com czar neighbour, but have to leave the Institution, would you venture out ?

  • Talk flow

    Venture Capital Investment in biotech low in Indian, but globally upbeat!Lack of funds or lack of opportunities?Are qualified entrepreneurs coming forwardCase Studies Ventureast Tenet Fund.

  • 1. Venture Capital Investment Low in Indian Biotech

  • 1. Venture Capital Investment low in Indian biotech Globally biotech investment activity has been upbeatBig opportunity:

    US VC trends signals huge potential:More VC investment in biotech in 2000-2003 than previous 10 years US Public markets confirm biotech potential:50% of biotech companies that went for IPO in NASDAQ since 2000 were funded by VCs.Huge potential for new drugs:All therapeutics in the world only address 500 proteins versus the many thousands of protein targets unaddressed.Huge Potential for IT activity related to biotech research: The use of computers for data mining, and target / drug design and validation

  • 1. Venture Capital Investment low in Indian biotech Most global ventures from Academia / ResearchersUniversity Spin-offs more than Pvt. sector (Germany)- late 1990s240 spin-offs by university professors 395 spin-offs by students152 spin-offs from Research Institutes458 spin-offs from Companies

    Genetic innovation patents in Universities / Govt. R&D institutes lead private sector

  • 1. Venture Capital Investment low in Indian biotech CII Estimates Business Standard: 31st Jan, 2003

  • 1. Venture Capital Investment low in Indian biotech Indian VC funds scenario for biotechnology

    No Indian biotech focused fundsFew fund managers with operating experience thats needed to hand-hold for early stage companiesMost fund managers with operating experience and the required overseas support, focusing not on start-ups but on mature companies and large investment sizes while most investment opportunities are in start-ups

  • 2. Lack of funds or lack of opportunities?

  • 2. Lack of funds or lack of opportunities?Investment low because.VCs do not want to invest in Biotech?ORQualified entrepreneurs not coming forward to start ventures?

  • 2. Lack of funds or lack of opportunities?Comparing the Silicon ValleysSource: D. Rosenberg, The Cloning of Silicon Valley

    Start-up ActivityHuman TalentVenture CapitalGlobal LinksUniversities / R&D InstitutionsTaxes & RegulationsCompositeBritain3442443.45Finland3433533.45Israel5455414.25India4324223.05Singapore2345353.20Taiwan4445554.35

  • 3. Why are qualified Entrepreneurs not coming forward

  • 3. Why qualified Entrepreneurs are not coming forward Issues with Researchers / Academia

    Pure research versus Research focused on commercialisationInstitutional barricades to commercial enterpriseLack of awareness of commercial opportunityFear of Investor ignorance and of investorsFear of partnering with others with business skills

  • 3. Why qualified Entrepreneurs are not coming forward Case Study Ventureast Tenet Fund

    Fund Objective: To support technologies that can be commercialised from IIT M, or support businesses that can gain from IT faculty supportInvolvement of the Tenet group of IIT Madras, and investment from the Chairman of Analog DevicesFund managed by the team members of APIDC Venture Capital Limited

  • 3. Why qualified Entrepreneurs are not coming forward Case Study Ventureast Tenet Fund

    Pure research versus commercialisation: Faculty driven by vision for India of telecom connectivity for the massesInstitutional barricades to commercial enterpriseSabbaticals and work through Institution approved consultancy contracts, while incubating Alumni.Lack of awareness of commercial opportunity:Close interaction with industry and VCsFear of Investors ignorance & of investors:Work with select VCs.Fear of partnering with others with business skills:Work with Alumni and hands-on VCs, who moderate the partners roles

  • If you dare to dream then the funding is there! Contact Indias first: The Biotechnology Venture Fundsarathnaru@apidcvc.com

  • Thank You