Support doubled to take product ideas to market
RESEARCH TRIANGLE PARK, N.C., July 9 /PRNewswire-USNewswire/ --
Start-up biotech companies may qualify for up to $1 million in loans under
a program unveiled this week by the North Carolina Biotechnology Center.
The loans are part of an expanded program funded by the Biotechnology
Center for companies in North Carolina. The funds give early-stage
companies a boost before they become competitive for angel or
venture-capital investment. Separate loans support company inception,
certain types of research and corporate growth.
The overall dollar amounts are more than two times larger than in years
past.
"Building a viable biotechnology company requires years of struggle and
millions of dollars," said John Richert, vice president of the Business and
Technology Development Program, "and the costs keep rising."
"So we've not only increased the caps on these offerings, but we've
also made some revisions to fill funding gaps and stay ahead of the
changing dynamics of the marketplace."
The revisions became effective July 1 and were a product of
conversations with members of the venture-capital community, university
technology-transfer offices and with entrepreneurs to learn how the
Biotechnology Center could improve its support of companies at different
stages of development.
Getting Started
The first change was to eliminate two programs that awarded either
$25,000 or $50,000 to fund corporate spin-outs or university start-ups.
Those two programs are now replaced with the Company Inception Loan of
$50,000.
The business-inception package also includes a $50,000 Technology
Enhancement Grant for technology-transfer offices at North Carolina
universities.
"That's to help them make technologies they may have on their shelves
more licensable," said Richert.
Supporting Research
In the research-loan offerings, the Biotechnology Center's Small
Business Innovation Research Bridge Loans fill the gap between phases of
federal SBIR funding. The loans are now capped at $150,000, twice as large
as before. The maximum for Small Business Research Loans, which support
applied research, has increased from $150,000 to $350,000.
Funding Early Growth
Company access to the Strategic Growth Loans has also been effectively
doubled. A company meeting clear milestones defined in a $250,000 Strategic
Growth Loan is now eligible for a second $250,000 infusion through the same
program. Companies were formerly limited to one such award. The loans still
require matching investment from a qualifying investment fund.
The Business and Technology Development Program has provided more than
$16 million in loans and other support to more than 100 startup companies
statewide since the Biotechnology Center was established in 1984.
That investment has resulted in more than $1.6 billion in additional
dollars from venture capital, federal grants, cooperative business
agreements and other sources. That's a return of $100 for every dollar
invested - a major reason North Carolina is the third-largest biotechnology
state in the United States.
The Biotechnology Center is a private, non-profit corporation supported
by the N.C. General Assembly. Its mission is to provide long-term economic
and societal benefits to North Carolina by supporting biotechnology
research, business and education statewide.
SOURCE North Carolina Biotechnology Center
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Related links:
http://www.ncbiotech.org
CONTACT:
Chris Brodie, vice president, corporate
communications, chris_brodie@ncbiotech.org, or John Richert,
+1-919-541-9366, john_richert@ncbiotech.org, both of North
Carolina Biotechnology Center
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