Equity Financing Potential for Leading R&D of Small and Medium-Sized Biomedical Corporations

Abstract

From the perspective of small and medium-sized innovative biomedical enterprises, this study conducts a comprehensive analysis of the corporate financing capacity during the equity financing process, aiming to provide valuable insights for the successful implementation of equity financing. The study involved the distribution of a total of 400 questionnaires to Chinese venture capital institutions and SMEs of innovative drug R&D, followed by statistical analysis of the questionnaire data results. In light of the challenges faced by these enterprises during the equity financing process, such as inadequate attention to financing business plans, neglect of financing roadshows, insufficient financing expertise, reliance on single financing approaches or channels, lack of meticulous capital partner selection and enterprises raise capital prematurely, this study proposes several countermeasures. These include prioritizing the financing business plan, emphasizing the importance of the financing roadshows, adopting a diversified financing approach, and objectively determining the optimal entry point for the financing stage. Venture capital can effectively address the financing bottleneck faced by small and medium-sized innovative biomedical enterprises, thereby serving as the optimal financing channel. Not only that, but also can effectively address the bottleneck issues associated with equity financing for small and medium-sized innovative biomedical enterprises and play a pivotal role in the field of innovative drug research and development (R&D). By fostering the development of more efficient novel drugs, it can significantly contribute to the robust growth of China’s biomedical industry.