The North Carolina Biotechnology Center as financial resource to industry

Transcription

1 The North Carolina Biotechnology Center as financial resource to industry John P. Richert Vice President, Business & Technology Development SBIR National Conference May 1, 2007

2 North Carolina Biotechnology Center A private, non-profit corporation Established by the State in 1984 $17.6 million budget 37-member board of directors 72-member staff Five regional offices: Asheville Charlotte Greenville Wilmington Winston-Salem

3 Mission To provide long-term economic and societal benefits to North Carolina by supporting biotechnology research, business and education statewide

4 Operating Philosophies Remain non-partisan Do not conduct laboratory research Enhance instead of duplicate Leverage resources Partner with others

5 Leveraging Resources Through Partnerships NC agencies National agencies Industry Policy makers Investors International partners Universities Community colleges

6 Business Resources at the Biotechnology Center Funding Programs Designed to support North Carolina biotechnology companies N C Life Science Business Development Initiative To facilitate potential partnering opportunities between North Carolina life science companies and larger companies Networking / Education Biotech Forums, Biotech Day Library Excellent resource for the business of biotechnology

7 Biotechnology Center Loans Inception Research Growth TEAM $50K BDL $25K SBIR Bridge $75K SRL $150K SGL $250K BDL requires equal matching by the company TEAM optimizes in-kind assistance SGL requires equal matching by VC s, angel network

8 Biotech Center Loans - Inception - Technology Enhancement & Acceleration Model (TEAM) $50K for North Carolina university spin outs Leveraged with mentoring, stakeholder contributed services and CEO recruitment through BATON program Business Development Loan $25K to help start companies not emanating from the university setting Biotechnology Center money must be matched by the company

9 SBIR Bridge Loan Biotech Center Loans -Research - $75K to support company research between SBIR Phase 1 and Phase 2 grant Small Business Research Loan $150K to support product development research Business plan and research proposal reviewed by outside reviewers

10 Impetus for the Strategic Growth Loan TEAM $50K BDL $25K SBIR Bridge $75K SRL $150K SGL Venture Founder & SBIR SBIR Angel $ Ph I Ph II $250K

11 Strategic Growth Loan (SGL) The company has achieved a commercially-important POC, (e.g., through SRL, SBIR grant) Leverages the Biotech Center s $250,000 loan through a matching investment from either an angel network or a venture fund Provides a significant level of funding that will help the company reach a meaningful, fundable event For company growth, not restricted to research Not for bricks and mortar or C-level employee salaries / benefits

12 Loan Terms Loans are tranched: 50% upon signing 40% upon mid-point report 10% upon final report Unsecured 5 year balloon payment 1 percentage point above prime For loans of $75,000 or above, we take 25% of the loan amount in warrant coverage

13 Collaborative Funding Grant (CFG) Purpose: Support a postdoctoral fellow in a university research laboratory who will perform a project of commercial interest under the guidance of a principal investigator. Encourages collaboration between academia and industry Helps move technology from lab to marketplace Leverages Biotechnology Center money with Kenan Institute

14 Collaborative Funding Grant (CFG) 4-way partnership: Biotechnology Center Kenan Institute University Company Partner Total package: $60K cash + $20K in-kind = $80K Company Size (# of employees) Company Contribution Biotech Center and Kenan University In-Kind Contribution 1 10 $10,000 $50,000 $20, $15,000 $45,000 $20, $20,000 $40,000 $20,000

15 Some compelling results North Carolina is the nations 3 rd leading biotechnology company state 350+ bioscience companies 48,000+ people in the industry $16 million in financial assistance provided to 100+ companies $1.3 billion in catalyzed follow-on funding raised from other sources $2 million invested in 20+ North Carolina venture capital funds and angel networks that invest in life science companies

16 North Carolina s Biotech Future Statewide Strategic Plan for Biotechnology, requested by Gov. Mike Easley New Jobs Across North Carolina Goal North Carolina will have 125,000 biotech-related jobs by 2023

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