Why Biotechs Should Consider Crowdfunding

Crowdfunding has seen a huge rise in popularity in recent years becoming an increasingly important means of financing for early stage companies.

Between 2014 and 2015, its use increased by 295% in the UK. By 2020, it is expected to overtake VC funding in Europe, which has long been considered the backbone of early stage investment. But among the success stories, there's been criticism too. In 2015 for example, the UK's Financial Conduct Authority (FCA) warned investors in equity crowdfunding that they could lose all their money.

In life sciences where there are high risks, perceived heavy capital needs and long development timescales, there is therefore scepticism about whether crowdfunding is right for this market.