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September 21, 2023

Choosing the Right Life Science Capital Solution for Your Needs

Creating and running a life science company requires plenty of resources. And that includes time and finding the right source of capital to fund your efforts. Since the capital solutions you choose impacts your short and long-term success, you need to take your time selecting the right funding source.

Entrepreneurs must understand that for their life science business to grow, they need to choose a partner who is time-sensitive. And one committed to meet aggressive timeframes. They should also get committed to completing your transactions within a few days.

That discussed, how do you choose the right to help with your investment process?

  1. Tailored investment structures

When choosing a life science capital company, ensure that they can tailor their investment structure to meet your needs. With issues including regulatory constraints experienced by traditional banks, the company should have a long-term investment strategy. And a permanent capital base that will take your business to the next level.

Some of the investment structures they may offer to include:

  • Structured debt financings

For business companies with commercialized products, the financing offers a more flexible source of credit capital compared to traditional lending institutions.

  • Traditional royalty monetization

That allows royalty owners to get upfront capital. The financing may comprise the entire or a portion of the royalty stream. Or a non-recourse loan if the loyalty owner prefers to maintain their future cash flows once the loan gets repaid.

  • Check their portfolio

Before making your final choice with a life science capital company, have an in-depth look at their portfolio. Here, you get to see their current investments as well as their legacy investments.

You get to see the different sectors they work with. And whether they can tailor their solutions to preserve their partner’s ownership interests.

Also, their portfolio gives you insights into the number of transactions closed. And the funding pumped in the life science industry.

  • Testimonials

When choosing a life science capital company, you need to go through various client testimonials. Here, you get to assess what they are about and if similar and varying businesses in the industry can vouch for their services.

You might want to steer away from a capital solutions company with negative comments. That could mean that their services may not be the best to consider.

Choosing a capital solutions company for your life science business with stellar reviews assures you that you are dealing with professionals. And will help deliver exceptionally as with their previous clients.

Final thoughts

Before settling for a capital funding source to support your life science business, consider your business’s unique needs, where you expect it to go in the future, and where it is in the growth cycle. One size does fit all when it comes to choosing a capital solution for your needs.

With the steps discussed above, you will most likely find a partner who will add value to your life science business. And hold your hand in this business journey you’re undertaking.

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