Most biotechnology companies are SMEs, if not micro-enterprises, that don’t have products on the market. So, they don’t generate resources to fund their activities. As a result, access to external funding is key to their development and one of Asebio’s top priorities.
Biotechnology firms are highly technological companies that operate in complex, highly regulated markets. As a result, our industry has long development cycles, needs significant investment and has a high technological risk profile.
Therefore, the biotech sector needs dynamic investment ecosystems with:
- A favorable legal and regulatory environment
- A framework of incentives that encourages R&D and investment
- A broad, diverse, powerful network of investors
At Asebio, we work to galvanize the biotechnology investment ecosystem in Spain, through public policies that encourage investment in biotechnology companies and activities to connect national and international investors with projects looking for funding.
How do we help boost our members’ businesses?
We work to improve the Spanish framework of direct and indirect incentives for R&D, working with the government to make sure that direct aid programs for R&D (subsidies and loans) adapt to the characteristics and needs of biotechnology companies. Our business models and maturity cycles are unique, so we need aid and incentive tools that fit us.
We also focus on attracting investment, which is key to fund the costly R&D needed for technology to reach the general public in the form of effective, safe products and services.
In particular, we work with specialized operators, like venture capital funds, that are destined to play a central role in funding biotechnology business initiatives. This is because they are used to investing in middle to long-term projects with high development risks that need a lot of capital. VC investors also have the skills and competences to help develop the companies they invest in.
We also promote activities to help biotech companies access and learn about capital markets, which play an important, growing role in channeling investment to biotechnology companies.
And we strive to help bring about formulas for public procurement of innovative solutions (PPI). This gives business R&D better access to public funding and speeds up the incorporation of innovation in public systems, especially in healthcare.
Our work to improve access to funding has converged with the drive towards internationalization, and we have joined forces with our companies in order to access international capital (Asebio Investor Day, BioSpain investment forum and BioEquity).
All of these activities, plus the relationships national venture capitalists have forged with their global counterparts and the growing interest in Spanish biotechnology on a global scale, have brought about a growing trend in international investment in our sector. We will continue working to consolidate this trend in the coming years.
Additionally, we believe that the government must act as a driving force for innovation through public procurement that is aware of this need. Asebio works with various levels of government on initiatives for public procurement of innovative technology, contributing our expertise and experience and encouraging biotechnology companies to participate.
In this arena, we have collaborated on recent initiatives like:
- Presenting the Public Procurement of Innovative Solutions program of the Regional Government of Andalusia at BioSpain 2018 in Seville. This presentation gave companies detailed information on the challenges to be tackled, in a preliminary market consultation process.
- Information day on the Xunta de Galicia Programa Código 100, explaining the regional government’s initiative for public procurement of innovative biotechnology and biomedicine solutions.