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• Venture Funding in EU vs USA

• 
  Scott Hampton

  (not a XING member)

  Venture Funding in EU vs USA

  Hello all;
  
  We have a startup that we are attempting to raise funds for. It is an ophthalmology pharma, early stage, and we do have animal data (http://www.therakine.com). We've hit the end of the bootstrap phase and are ready to close some important licenses - which are not free.
  
  The trend in the USA has been that early phase (2M$ to 5M$) money is getting rare, and focused more in shorter path companies like medical devices. Four years ago, animal data for lead candidate was all that was required, but it has been very frustrating over the last six months to be told that we are "too early" even with good data and great partners.
  
  Several of our entrepreneurial friends in Germany have told us that we can more easily raise funds there. I've heard something similar from the UK. The assumed knowledge here in the USA is that it is tough to raise funds in EU, but what I am hearing from folks that have done it is that it is easier. We would like to raise about 5M Euro for the next two years with partners who can help us succeed in the next round.
  
  Before we devote a lot of time and money to this, I would love to hear from anybody who has either raised money in the last two years in EU or is on the VC side -- or any economist or development folks who have insight.
  
  Thank you in advance,
  
  Scott
  
  • 10 Jan 2008, 4:00 pm
  Scott Hampton wrote: > Hello all; > > We have a startup that we are attempting to raise funds for. It is an > ophthalmology pharma, early stage, and we do have animal data > (www.therakine.com). We've hit the end of the bootstrap phase and are > ready to close some important licenses - which are not free. > > The trend in the USA has been that early phase (2M$ to 5M$) money is > getting rare, and focused more in shorter path companies like medical > devices. Four years ago, animal data for lead candidate was all that > was required, but it has been very frustrating over the last six > months to be told that we are "too early" even with good data and > great partners. > > Several of our entrepreneurial friends in Germany have told us that > we can more easily raise funds there. I've heard something similar > from the UK. The assumed knowledge here in the USA is that it is > tough to raise funds in EU, but what I am hearing from folks that > have done it is that it is easier. We would like to raise about 5M > Euro for the next two years with partners who can help us succeed in > the next round. > > Before we devote a lot of time and money to this, I would love to > hear from anybody who has either raised money in the last two years > in EU or is on the VC side -- or any economist or development folks > who have insight. > > Thank you in advance, > > Scott
• Post visible to registered members
• 
  Cyril Demaria

  The company name is only visible to registered members.

  Re: Venture Funding in EU vs USA

  Hi Scott,
  
  EU VC usually involved in eatly stage financing are focusing on their local markets. Even though your company might be very attractive to be financed (which I am in no position to judge), these firms may tell you that not having a lead and/or an investor from the US would prove it difficult for them to invest. They would then tell you that you would come back later to finance mid to late stage developments of your company.
  
  Using a placement agent may help, if he/she is well connected locally, but honestly, I believe that you have to look for foundations, family offices and individuals who are in the sector and have made a fortune out of the medical field. I believe that the US have a wealth of foundations who can finance biotech companies.
  
  Good luck.
  All the best,
  Cyril
  
  • 09 Feb 2008, 3:13 pm
  Cyril Demaria wrote: > Hi Scott, > > EU VC usually involved in eatly stage financing are focusing on their > local markets. Even though your company might be very attractive to > be financed (which I am in no position to judge), these firms may > tell you that not having a lead and/or an investor from the US would > prove it difficult for them to invest. They would then tell you that > you would come back later to finance mid to late stage developments > of your company. > > Using a placement agent may help, if he/she is well connected > locally, but honestly, I believe that you have to look for > foundations, family offices and individuals who are in the sector and > have made a fortune out of the medical field. I believe that the US > have a wealth of foundations who can finance biotech companies. > > Good luck. > All the best, > Cyril
• 
  Gordon Whyte

  The company name is only visible to registered members.

  Re: Venture Funding in EU vs USA

  Hi Scott,
  I have raised funds both in North America and Europe, I am at present raising £30m for a cleantech project in the UK. I have found that the US is far easier to raise funds in if you are a "need to have" for there portfolio, like in the telecoms days..I rode them.. Europe lags behind North America in investment trends generally (not cleantech) ...and most invest in Europe, the larger VC's like Pond and Doughty Hanson do invest in the North America...my comment would be for you too find a investment fair and get a spot to pitch there, in Europe and see what feed back you get....then you will know if it is worth the effort / cost off a trans-atlantic funding project...let em know how you get on....and keep clear of "agents"...not worth the effort and does not bring you smart money...
  
  
  best of luck
  
  Slainte
  
  Gordon
  
  • 31 Mar 2008, 2:02 pm
  Gordon Whyte wrote: > Hi Scott, > I have raised funds both in North America and Europe, I am at > present raising £30m for a cleantech project in the UK. I have found > that the US is far easier to raise funds in if you are a "need to > have" for there portfolio, like in the telecoms days..I rode them.. > Europe lags behind North America in investment trends generally (not > cleantech) ...and most invest in Europe, the larger VC's like Pond > and Doughty Hanson do invest in the North America...my comment would > be for you too find a investment fair and get a spot to pitch there, > in Europe and see what feed back you get....then you will know if it > is worth the effort / cost off a trans-atlantic funding project...let > em know how you get on....and keep clear of "agents"...not worth the > effort and does not bring you smart money... > > > best of luck > > Slainte > > Gordon
• 
  Deborah Boyd

  (not a XING member)

  Re^2: Venture Funding in EU vs USA

  Dear Scott,
  
  First let me ask you some questions. What would it take for you to quadruple your business in 3 years?
  Can you produce a believable, honest business strategy to get there?
  Is your management team ready to go there and commit?
  Do you want to accept help in order to achieve your goals?
  
  Think about it. If you are interested and could use $20 million + USD to put your business in overdrive, you know where to find me.
  
  • 01 May 2008, 12:37 am
  Deborah Boyd wrote: > Dear Scott, > > First let me ask you some questions. What would it take for you to > quadruple your business in 3 years? > Can you produce a believable, honest business > strategy to get there? > Is your management team ready to go there and commit? > Do you want to accept help in order to achieve your > goals? > > Think about it. If you are interested and could use $20 million + USD > to put your business in overdrive, you know where to find me.