The conceptual decision-making model of investment strategy for Venture Capital in Biotechnology industry

• Main Authors: Ku, Hsin, 谷欣
• Other Authors: Chen, Ming-Shen
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/85087464671635624394

碩士 === 國立臺灣大學 === 財務金融學研究所 === 90 === Biotechnology industry is the hottest issue in the 21th century. However, its long investment period, huge amount of investment and the highly investment risk concern the Venture Capital to put into money. Therefore, Venture Capital needs the more discreet but more efficient method to evaluate the biotechnology industry. The purposes of this study are to build up a logical research strategy analyzing Biotechnology industry and to provide the conceptual decision-making model of investment strategy for Venture Capital in Biotechnology industry. To sum, there is a “co-competition” relationship between the pharmaceutical companies and the dedicated Biotechnology firms, which is reflected to the “big pharm and little biotech” trend. In addition, this study presented a two-dynamic industry category and value chain matrix to analyze the industry. The critical successful factors of each company may be resulted distinctively from the different location in the matrix. In other words, the upper companies are, the more the research and development of the latest technology they concentrate on. Furthermore, the middle companies may be influenced by the regulation and capital whereas the lower companies could be affected by the market evaluation and the product marketing. Nowadays, VCs are more confident on the biotech firms which have stronger management team. In contrast, VCs give product more weights when evaluating the Biotechnology industry. The development of technology does not play the role as important as before because the good management team are believed to realize the profit or acquire the new technology through the authorization or strategy alliance. Meanwhile, the technological consultant teams and strategy alliance partners add the bonus points during the evaluating process. Moreover, VCs are fond of investing in platform companies or tool companies to avoid the failure risk of single product.