Challenges Faced By Companies Of The Bionanotechnology Sector Depending On Their Size. Small Companies
1482 Words6 Pages
There are many challenges faced by companies in the Bionanotechnology sector depending on their size.
According to Dr. Elicia Maine, an Associate Professor at the SFU’s Beedie School of Business, most of the Bionanotechnology research in Canada takes place at the University level. The researchers at the University level look for the labs in their own University only that have industrial participation. So, many of the Nano-biotech researches for the startups remain at the University level and therefore lag behind on new research due to scarcity of funds. Further, the researchers at the startups have to work for long hours and get little time to read the journals related to their research and keep themselves updated about the…show more content… Dr. Maine suggested that Nano-biotech companies should divide their research into different branches or even different companies, so that they can maintain diversity while accepting the Venture Capitalists demands. An important example of such a company is Nanogram Corporation, which directed its research into different areas including medical devices, consumer electronics and solar energy. The research at Nanogram was purchased by a Japanese company Teijin Ltd. In the year 2010.
Another important issue involving the funding by the Venture Capitalists is the Risk Capital in the Nano-biotech sector. According to CVCA (Canada’s Venture Capital and Private Equity Association), the worldwide risk investment in Canada dropped by 22% to $380 million in 2012, although overall investment remained stable at $1.5 billion in 2011. Thus, Canadian research based Nano-biotech firms are often the target of foreign buyers as risk capital in Canada is lower than United States. Alberta is seen as the ideal destination for funding by the Venture Capitalists.
A big challenge faced by the multi-nationals in the Nano-biotech sector is to keep the innovation alive. According to Dr. Maine, the radical innovations happens mostly at the smaller companies. The big companies, although profitable, lacks diversity and flexibility in their research focus because of the stakeholders and Investors demands. However, innovations can occur at the big companies