When it comes to starting a company that offers products and services to the pharmaceutical industry, funding can be a big issue. Is it better to bootstrap your new company or seek out investor funding? We evaluate the pros and cons of each type of funding in this slide deck. #pharmafunding

1. BOOTSTRAPPING OR
INVESTOR FUNDING
A guide to determining whether
is best for your pharmaceutical startup

2. When funding your startup, you have two options:
Bootstrapping:
Using your own resources
Investor Funding:
Using someone else’s resources

3. Bootstrapping means the founders
hustled sales and used their own funds -
and in the process, made their companies
profitable - without external funding.
Bootstrapping
- Kelly Hoey, Inc.com

4. An investment by an angel investor
who puts his or her own money
directly into a startup, if done at the
right time, makes a critical difference
to the success of the firm.
- Jonathan Ortsman, Kauffman.org
Investor Funding

5. Each has its own pros and cons.

6. BOOTSTRAPPING
The Pros of Self-funding

7. Enables you to retain control over
product development

8. Allows for organic product growth
without external influencers

9. Fosters creativity to counterbalance
monetary and time restraints

10. Positions you for investor funding
later on

11. BOOTSTRAPPING
The Cons of Self-funding

12. You may not be able to meet
high customer demand

13. Your product may outpace interest
in it

14. You may lack the capital to take
advantage of opportunities

15. You will likely not draw a salary
for some time

16. INVESTOR FUNDING
The Pros of Outside Help

17. Enables you to get to market faster
with a better-researched product

18. Makes it possible to stay abreast of
trends and keep a competitive edge

19. Provides infrastructure and staffing so
you can focus on your expertise

20. Gives you access to a wider network
of potential clients and advisers

21. INVESTOR FUNDING
The Cons of Outside Help

22. You may not be able to find an
investor willing to work with you

23. You will likely cede much of your
control over the company

24. You’ll need extensive legal agreements
to address funding issues

25. You may eventually be ousted by
your own investors

26. PHARMACEUTICAL
CONSIDERATIONS

27. For startups seeking pharmaceutical clients,
additional factors need to be considered.

28. 1 CASH FLOW
Pharmaceutical companies typically
take 60-90 days to pay

29. 2 PRODUCT APPROVAL PROCESS
Approvals can take so long that initial
agreements may be forgotten

30. 3 ADVISORY TEAM
You’ll need expert advisers to share
feedback and help with decision-making

31. We help businesses that sell to
pharmaceutical companies.
Want more great content?
PharmaAcumen