ABSTRACT
Substantial amounts of capital have been invested in the companies that have pioneered the development of a group of technologies promising profound benefits to mankind and representing a powerful source of new commercial opportunities. This chapter attempts to describe the typical financing processes and devices that have provided the foundation for this industry. Biotechnology ventures have available for their financing all of the conventional devices developed in recent years by other high technology enterprises. In general, the stage of an entity’s development has the greatest influence on the choice of investment vehicle, followed in significance by prevailing general financial market conditions. The chapter focuses on accurately describing and assessing the company and its prospects through the analysis provided by the business plan and the information provided in the due diligence process and in the course of negotiating representations in the purchase agreement.
