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Swedish Biotechnology Firms: A study of capital raising methods
Stockholm University, Faculty of Social Sciences, School of Business.
Stockholm University, Faculty of Social Sciences, School of Business.
2006 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

The Biotechnology market can be seen as a rather risky business, since a product can either be approved or rejected, which means that several years of research can go lost. So, how then does a Biotechnology firm raise capital? Who invests in this high-risk business? In this paper we will identify and analyze the various methods that a Swedish Biotechnology firm has in order to acquire funds. A firm can turn directly to angel investors or venture capitalists in its early stage, or decide to go public during its later stage (IPO). We also examine the demands of various investors. Four Swedish Biotechnology firms were thoroughly analyzed along with two Venture Capital firms and one investment fund, these different investors were interviewed by us. Venture capitalists seems to be those who provide funds during the early stages of a firm’s life cycle, while an Initial Public Offer (IPO) is current during later stages, specifically during a Biotechnology firm’s third phase of clinical studies. When external parties invest funds, such as venture capitalists, the firm in question seems to lose some of its control to the investor. We came to the conclusion that the later stages, such as the third clinical phase and the market launch of a finished product, are the most capital intensive. This is why a Biotechnology firm performs an IPO during its later stage, since it provides with large amounts of funds, in our case it was the largest amount acquired. Keywords: Biotechnology; Venture Capital; IPO; R&D

Place, publisher, year, edition, pages
2006.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:su:diva-6539OAI: oai:DiVA.org:su-6539DiVA: diva2:196625
Uppsok
samhälle/juridik
Available from: 2007-01-05 Created: 2007-01-05

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