Biotech Startups and Venture Capital: Factors Driving Funding Success in Emerging Markets

Abstract

Venture capital (VC) investors are showing a growing interest in emerging-market biotechnology companies due to their call to fight diseases and high revenue rates. Therefore, this research examines the various drivers that dictate funding success in these regions and the market factors that include regulatory systems, access to human capital, technology, and risk tolerance systems. Although such markets have difficulties and weaknesses, such as infrastructural deficiencies, rigid regulations, weak economic foundations, and so on, they demonstrate strength and attractive opportunities: lower costs and unmet demand for health care services. The main findings of the study show that good IP protection, efficient business models and government support are key drivers to the development of the biotechnology industry. Furthermore, the key enablers of funding and growth that are revealed include strategic partnerships and cross-border collaborations. It follows that an analysis of such factors would assist the various stakeholders – the entrepreneurs, policymakers and investors, in dealing with the existing challenges to enhancing the biotech sector in the emergent markets, thus realizing the full potential of the innovational transformations.