Understanding Sources of Capital Making a Deal with the Devil

6 Understanding Sources of Capital Making a Deal with the Devil 

Unless you have inherited 1.5 billion, the only way you can successfully bring a biotech drug to market is to use OPM. This section focuses on the various sources of OPM, with some thoughts about their relative desirability. 

A question I am consistently asked about funding a biotech company is, What kind of investor can afford to accept the extremely high technical risk of drug development while waiting 10 to 15 years for a product launch  

The answer is, no single investor can get the job done. Rather, funding a biotech company requires a chain letter strategy, whereby subsequent groups of investors achieve their target returns by passing the stock baton to the next level of investors as technical risks decline. 

---