Proof-of-Concept programs fund development projects that demonstrate an innovation’s market viability to potential investors and partners. Projects consist of a defined set of milestones that, when completed, help overcome a specific hurdle to an innovation’s transfer.
Funding Mechanism and Return on Investment
Startup biotechnology companies require significant capital infusion and it may take over 10-year for Return on Investment, extensive regulatory scrutiny and a very high failure rate. However a successful company can be very rewarding to its founder, employee and investors.
Investment mechanism could be one or combination of following:
- Equity financing, KAIMRC will own part or all the company.
- Debt financing, with specific terms of rate and maturation date. KAIMRC may choose to have the option of conversion to equity.
- Combination of the above.
- Grant or some sort of incentive to attract companies that can help KAIMRC achieve its prime objectives.
We highly recommend that KAIMRC to engage 3rd party (VC, foundations, pharmaceutical companies) potential investors as additional support mechanism to provide the young company with additional source of funds.