Life Science Entrepreneurs' Forum

R&D Funding Opportunities for Life Science Companies

Monday, April 16, 2007

Sponsored by Perkins Coie LLP

This Month's Topic: R&D Funding Opportunities for Life Science Companies

Over the past couple of months, we talked about corporate investments in life science companies and preparing your company for outside funding. This month, we will investigate other opportunities for R&D funding, through government grants at the local, state, federal levels and also foundation funding and military funding. This month, our facilitator Brian Boyer will talk about the challenges his companies faced in securing R&D funding from government, corporate, and other grants and partnerships, and some ideas on how to successful navigate the grant-submission process.

Our conversation will feature entrepreneurs who have successfully received outside funding from grants, as well as investors, corporations, etc., Our panelists will share their challenges, their successes and their advice on how to best secure the necessary R&D funding for their life science organization.

Below is a compiled list of comments from the speakers and the event attendees.

Have a Good Idea, Then Execute Your Plan

Start with a life science business idea which is interesting to a specific target audience, something you, as a founder are passionate about.

Create a team to build the organization and strategically identify the best R&D funders, those who would think that you're idea is a good one, in a huge market. Sell the funders on the business idea and on the team.

Once you are funded, make sure you execute on your business plan, while also staying flexible, based on changing market needs/technology requirements. This will not only help ensure the success of your company, but also to ensure R&D funding for your next venture.

When you are planning your funding, make sure that others on your team are aware of the level of work and commitment needed to ensure success. Investors will respect your personal financial and personal commitment to your cause.

The Value of Networking

Networking with the right people can help get the right doors open for your R&D efforts.

Continue speaking passionately to all your contacts about your current funding needs and a door may unexpectedly opened for you.

Be prepared - plan for such an occurrence to happen, so know what you're looking for, what you will do with it, who will do the work, over what time frame with support of which partners.

Be proactive and speak to program officers of foundations and other funding sources. Ask them for suggestions and feedback. Develop a relationship with them, and they may help you give you the advantage tailoring a grant request specifically to your organization.

Consider building relationships with VCs for support in filling out your team.

Having R&D funding changes the way other investors perceive you.

They may be more likely to partner with you, assuming that another party will fund the more risky R&D efforts.

They might think that the funding will make it more difficult to influence the direction of your company.

In some cases, they might be threatened by the grant agreement, if IP and ownership issues are raised for instance.

Plan your funding strategy, integrating a variety of sources - from corporate investors to foundations and venture firms.

We are grateful for the generous sponsorship of Perkins Coie LLP (http://www.perkinscoie.com). The event will be conducted at the Perkins Coie offices located at 101 Jefferson Drive in Menlo Park. We would also like to thank and acknowledge Sanford Rose Associates-Silicon Valley (http://www.srasv.com) for their sponsorship and support of FountainBlue's life science events. Our work is not possible without their support and we would encourage you to consider their services.

For more information about our life science entrepreneurs' forum, visit http://www.fountainblue.biz/entrepreneurevents/lifescienceentrepreneur.html.

For notes from previous sessions, visit http://www.fountainblue.biz/resources/lifesciencenotes.html.

Visit http://FountainBlueEntrepreneurs.blogspot.com/ for blogs on this and related topics.

Below is a list of potential grant funders, compiled by David Light of Business Builders.