poetzsch-consulting - poetzsch-consulting.de
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Welcome to Poetzsch Consulting
Financing high-tech businesses is not something you can buy off
the shelf, like a mortgage for your home. Each project has its own
strength and weaknesses, scientific background, opportunities and
risks, and of course - people. It needs specialized investors who
not only work and think differently compared to banks, but who
also will take a much greater risk in providing you with the funds
you need to convert your science into business. *********, there
are several Thousand of these Venture Capitalists. And maybe a
handfull of them would be interested in just your project.
Of course, there are online directories of them, and business plan
templates you can fill in. But there is one thing you cannot
download: Experience from working with many investors and
companies over many years. Of course, you can insist on making
your own mistakes, and learning from them. But isn't the price for
it too high?
And because each project is special and needs a tailor-made
solution, it will take some time to get it "in dry sheets". So,
start early and consider: The best time for raising money is, when
you do not need it (immediately, I should add, to avoid any
misinterpretation).
Enjoy this site and let me know if there is something I can do for
you.
Yours
Joerg Poetzsch
Conflicting Political Signals for the German Biotech Industry
German politicians do not get tired to run expensive campaigns for
innvoations, including the biotech and pharmaceutical industries.
We hear, Germany should - again - become the "Drug store of the
World", after "some territory has been lost" (which is a mild
description for scaring away pharmaceutical research during the
past decades). Will now everything change? Hard to believe. And
right: While at the one hand, the Research Ministry puts hundreds
of Million Euros into research grants, it stops German scientists
from keeping up with modern stem cell research. And more: A new
law should make capital investments in innovative companies more
attractive. At the same time, a tax "reform" (the term "reform"
generally means, to make things better, and not worse), excludes
companies from these benefits that are less than 10 years old and
have more than 20 Mio EUR equity. In other words: Most promising
biotech companies. My best guess would be, it is still not fully
understood how the biotech industry works, and even more
"territory will be lost".
Venture Capital for German Biotechs declined in 2006
Ernst & Young reports a sharp decline of Venture Capital invested
in German Biotech companies in 2006 by almost 35% from 326 to 213
Mio €. The amount invested fell below the investments made in
2003. Compared to other European countries, Germany losts its 2005
top position, and now ranks on position three. Only Finland (-59%)
and Sweden (-39%) experienced a sharper decline in Venture Capital
Financing. France experienced a sharp raise (+60%) with a total of
€ 242 Mio invested, followed by the British Biotech industry (€
238 Mio). The average amount invested in Germany declined to € 5,5
Mio.The reason for the decline is related to the decline of "late
stage financing" rounds - due to the lack of a sufficient number
of such companies. Obviously, the short-sighted investment
strategy "late stage only" of the past years now starts paying its
tribute. Even the sharp raise of seed- and early stage financings
in 2006 will not be able to change the situation fast: The
comanies will need years to grow up.
Key Parameters of the German Biotech
* 480 "dedicated biotech companies"
* 13,000 employees
* 88% of these companies have between 10 and 50 employees
* only 4.5% have more than 100 employees
* the average age of the companies is 6.9 years
* 44% of the companies received venture capital in 2005
* 83% of the companies is active in the medicine/healthcare
sector
For more information, visit
Poetzsch Consulting
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