Posted tagged ‘Venture Capital’

What to Consider Before Seeking Venture Capital

December 2, 2013

Dr. Lindsay Rosenwald maintains expertise in several areas of finance, from direct investing to venture capital. Today, many entrepreneurs, like Dr. Lindsay Rosenwald, turn to venture capitalists for the money they need to realize their ideas. Before seeking funding, however, they must consider several factors.

First, entrepreneurs must have a clear market for their product and be able to demonstrate to investors how and why the product or service will generate money. Some ideas that sound great on paper simply lack a viable market, thus making them unlikely to receive funding. Additionally, the market must be large enough to attract substantial revenue. Venture investors typically look for markets of a certain size before they will even consider putting money into a new idea.

Entrepreneurs should gather a team of experienced, knowledgeable managers capable of developing the envisioned business, particularly when asking for funding at a later stage of the enterprise. When leaders can point to the past successes of team members and clearly spell out their contribution to the current project, they will more likely convince a venture capitalist to invest in the plan.

Venture Capitalists See Massive Opportunity in Biotech Sector

October 8, 2013

Lindsay Rosenwald co-manages an investpment partnership that specializes in biotechnology investment. In addition to his professional obligations, Lindsay Rosenwald contributes to a variety of philanthropic organizations through the Rosenwald Foundation.

BiotechInvestment in the biotechnology sector has surged in 2013, following more than a dozen initial public offerings. In addition to the funds raised through these IPOs, experts report that venture capitalists poured $1.3 billion into the industry in the second quarter. A 41 percent increase over the first quarter, the sum encompasses more than 100 deals. Furthermore, funding for early-stage start-ups doubled to $328 million in the second quarter, demonstrating an enthusiasm for the industry that has not existed since before the financial crisis.

Unlike pharmaceutical companies, which typically allocate sales profits from drugs on the market to fund new drug development, biotechnology firms generally operate at a loss during their extensive research and development phases. Biotech firms have produced some of the most innovative therapies on the market; however, as a result of their business model, they require increased investor funds.