Equity Crowdfunding for Biotech Startups: Does It Work?

Over the last decade, crowdfunding has become a popular way to finance all sorts of projects and products. Biotech is no exception, but many question whether the high risk and long term nature of investing in the biotech industry makes it a good fit for equity crowdfunding.

When you hear the term crowdfunding, you might think of platforms like Kickstarter, where people can pay for a product in advance in order to fund the company that will create it. The model has been very successful for many startups, but biotech companies often follow a different strategy where investors get a stake in the company rather than a product.

Known as equity crowdfunding, this model is becoming an increasingly common option for biotech startups to raise the money they need to get their company started. Especially for those in medical fields, where the development of a drug can take over a decade.

Find the full article at labiotech.eu