Business Financial Assistance for Indian Biotech Entrepreneurs

One always needs capital or financial assistance to start any business. There is lots of financial assistance available for Indian entrepreneurs to start biotech business. These include following assistance from government and private sectors.

• Business Loan by Bank

• Financial Assistance by Government sector

• Venture capitalists and Private equity

Business Loan by Banks

Biotechnology offers very good business opportunities. One Single example is Ms. Kiran Mazumdar Shaw which is the CEO of a Biotech company- ‘Biocon’ and currently the richest lady of India. She found very hard to convince the Indian bankers in 1978 for business loan as nobody was aware of such business that time. But the scene has totally changed now. Now banks promote people to go for biotech business, provided the business proposals submitted by them are not too risky, based on proper market survey. There are several business concerned with biotechnology, which can be started at reasonable capital. Some of them even don’t require very technical specialties and infrastructure. You can take the help of so many Biotech Business Consultancies.  

Business loans are given by following Banks** and financial sectors:

• Abn Amro: www.abnamro.co.in/ProductsnServices/Consumer/Loan_Products/loanproduct-business.html

• Bank of Baroda: click http://www.bankofbaroda.com/bbs/index.asp

• Canara Bank: click http://www.canbankindia.com/interest/riloansroi-ind.html

• Central Bank of India: Click http://www.centralbankofindia.co.in/english/loans.asp. 

• Citibank: http://www.citibank.co.in/.

• Corporation Bank: www.corpbank.com/asp/0100text.asp?presentID=113&headID=20.

• Oriental Bank of Commerce: Click http://www.obcindia.com/uniquepage.asp?id_pk=33.

• Union bank of India: Click http://www.unionbankofindia.co.in/ln_union_trade.aspx

• AXIS (UTI) Bank: http://www.axisbank.com/personal/loans/studypower/Study-Power.asp 

**Note: Information based on the website with hyperlinks available, though there are other banks also which provide business loan. Include your bank name and business loan detail  in not more than 300 character (if there is no website), and mail us at ad@indiabiotech.in.

Financial Assistance by Government sector

Ministry of Science and Technology, Govt. of India has several funding departments which provides funds for biotechnology Institutes, NGO’s, Individuals, students, researchers and professionals to promote biotechnology, its products or business, some of these funding agencies and the type of assistance are:

Department of Science & Technology (DST)

For various fellowships Click http://mst.nic.in/dst/

• Technology Information Forecasting & Assessment Council - TIFAC

TIFAC is an autonomous organization under Department of Science and Technology. It keeps a technology watch on global trends, formulate preferred technology options for India, promote key technologies and provide information on technologies. For more detail Click http://www.tifac.org.in/

• Home Grown Technologies Programme - HGT

It is initiated by TIFAC. This programme aims to give financial, techno-managerial and patent related support to deserving technology development projects for pilot operations or/and significant improvement to existing one. For detail click http://www.tifac.org.in/

• Technology Development Board -TDB (For Partial Financial Assistance for Commercial Technological Research)

It invests in equity capital or gives soft loans to agencies like academic institution, national or state laboratory, registered R&D foundation etc., involved in the development and commercial application of indigenous technology, or adapting imported technology to wider domestic applications. For more detail click http://www.tdbindia.org/index.html

 Department of Scientific & Industrial Research (DSIR)

DSIR promotes trade in technologies and collaborative R&D and technology development projects. For its various financial aids click http://dsir.nic.in/

• Technopreneur Promotion Program -TePP

It is jointly operated by DSIR and DST. It aims to tap the vast existing innovative potentials of Indian entrepreneurs in order to assist individual innovators to become technology based entrepreneurs and further assist in networking and forging links for the commercialization of their developments. For detail click http://dsir.nic.in/

• Research & Development by Industry -RDI

The RDI mainly recognize in-house R&D units in industries and Scientific & Industrial Research Organizations and give them financial incentives for Scientific Research. Click http://dsir.nic.in/

• Scheme to Enhance the Efficacy of Transfer of Technology -SEETOT

SEETOT supports Technology Acquisition and Management via the schemes:

§         National Register of Foreign Collaborations -NRFC
NRFC objective is to facilitate acquisition and management of technology in the country more efficiently. For detail click http://dsir.nic.in/division/seetot/nrfc/nrfc.html

§         Transfer and Trading in Technology -TATT
Objective of TATT is to catalyze Technology Intensive Export Efforts of Industry or R&D through Grants & Technical Assistance.

• ‘Technology Development and Demonstration Program’ (TDDP) earlier known as ‘Program aimed at Technological Self Reliance’- PATSER

Its objective is to promote industry’s efforts in development and demonstration of indigenous technologies, development of capital goods and absorption of imported technologies. It promotes the involvement of national research organizations in joint projects with industry. For more detail click http://dsir.nic.in/tpdup/tddp/tddp.htm

Venture capitalists (VC) and Private equity (PE)

Besides availing loan to start biotech business there are other alternatives to fund your business. You can contact various VC and PE to start your biotech /life science and other business. PE broadly refers to any type of non-govt. ownership equity securities that are not listed on a public exchange. PE includes both start up/early stage (venture capital) and later stage (buy-out, expansion) investing. Venture capital is a type of private equity capital typically provided by professional, outside investors to new, growth businesses. Venture capital investments are generally made as cash in exchange for shares in the invested company. VC investment is generally made in enterprises that are too risky for the standard capital markets or bank loans. A venture capitalist (VC) is that person who makes such investments. Capital is generally required for the start-up, development/expansion or purchase of a company. VC provides equity financing for rapidly-growing private companies. Venture Capital firms invest funds on certain specialized sectors, like IT, infrastructure and health/life sciences etc.
          The venture capitalist obtains an agreed proportion of the share/equity of the company in return for the funding. No interest is charged by the VC on the investment. The VC gains profit through long-term capital gain rather than immediate and regular interest payments, like in the case of debt financing. In VC funding venture capitalist are exposed to the risk of the company failing. VC invests in company which has the ability and possibilities to grow very successfully and provides higher than average returns to compensate for the risk.
         Venture capitalists can be a member of company's board of directors. He can provide any managerial and technical advice to the entrepreneur and can help the company.

         The things you must have in your Business proposal are- Your project idea (Title) must be very much focused, it shouldn’t be illusive or fuzzy mode of working or market report etc.; It should have reliable current market report and survey, supporting the trend and revenue generating possibilities, the risk factors involved along with the strategy how to deal with those risk factors.

         Following are the major Venture Capitalist (VC)/Private Equity (PE) Players some of them support various life sciences/Biotech business projects in India:

• 2i Capital (India) Pvt. Ltd.: www.2icapital.com
• Aavishkaar India Micro Venture Capital Fund: http://www.aavishkaar.org/
• Abraaj capital
• Abundance venture capital
• Acer Technology Ventures: http://www.acervc.co.in/
• AIL&FS
• Alliance Venture Capital Advisors: http://www.allianceventure.com/
• Alta partners
• Americacorp capital Pvt. Ltd.
• Anandrathi Real Estate Fund: http://www.rathi.com/
• Apax partners worldwide LLP
• APIDC Venture Capital Ltd.: http://www.apidcvc.com/
• Associated Law Advisors: http://www.ala-india.com/
• Avendus Advisors Pvt. Ltd.: www.avendus.com
• Avon Capital Services Ltd.
• Ayyar & Cherian Consultants Private Limited: http://www.ayyarandcherian.com/
• B. P. Rao & Co.: mailto:bprao@satyam.net.in
• Banc of America Equity Partners Asia
• Baring Private Equity Partners India Ltd.: http://www.bpepindia.com/
• Berkeley Finance & Consulting Pvt. Ltd.: http://www.berkeleyfinancing.com/
• BTS Investment Advisors Pvt. Ltd.: http://www.btsadvisors.com/
• Burill and company
• Canaan partners
• Canbank venture capital fund Ltd.: www.canbankventure.com
• Chrys capital: www.chryscapital.com
• CIG Realty Investors India Pvt. Ltd.
• Clear Info-Analytics Pvt. Ltd.: http://www.clearanalytics.co.uk/
• Coller capital Ltd.
• D. E. Shaw India Software Pvt. Ltd.: mailto:resrep@deshaw.com
• Dawn Consulting: http://www.dawnconsulting.com/
• Deloitte Haskins & Sells: http://www.deloitte.com/
• Dewan P. N. Chopra Consultants Private Limited: http://www.dpncindia.com/
• DFJ ePlanet Ventures
• DHFL Ventures Trustee Company Pvt. Ltd.: http://www.dhflvc.om/
• Dresdner Klenwort
• Dua Associates: http://www.duaassociates.com/
• Equilink Capital Management Services Ltd.: http://www.equilinkcapital.com/
• eVentures India (P) Ltd.: http://www.eventures.co.in/
• Evolvence Advisory Services Pvt. Ltd.: http://www.evolvenceindia.com/
• Francis Joseph: mailto:businessfrancis@yahoo.com
• Frontline Venture Services Pvt. Ltd.: http://www.frontlinestrategy.com/
• Gaja Capital Partners: http://www.gajacapital.com/
• Gandhi & Associates: http://www.gandhiassociates.com/
• Gujarat Venture Finance Ltd: http://www.gvfl.com
• GW Capital Pvt. Ltd.: http://www.gwcaps.com/
• Hansuttam Finance Ltd.
• HDFC Venture Capital
• Headway Capital: http://www.headwaycapitaladvisors.com/
• Henderson Global Investors (Singapore) Ltd.
• HSBC Private Equity Management Mauritius Ltd: http://www.hsbc.co.in/
• ICF Ventures: http://www.icfventures.com/
• ICICI Venture Funds Management: www.iciciventure.com  
• ICOS Capital: http://www.icoscapital.com/
• IDBI - Venture Capital Dept: http://www.idbi.co.in/
• IDFC Private Equity Co. Ltd.: www.idfcpe.com
• IFCI Venture Capital Funds Ltd.: http://www.ifciventure.com/
• IFU: http://www.ifu.dk/
• IL&FS Venture Corporation Ltd.: http://www.ilfsindia.com/
• iLabs Venture Capital Fund: http://www.ilabsgroup.com/
• Indasia Fund Advisors Pvt. Ltd.: www.indiaasiafund.com/
• Indian Angel Network: http://www.indianangelnetwork.com/
• Indian Direct Equity Advisors (idea) Pvt.Ltd.: http://www.ideaequity.com/
• Indus Venture Management Ltd: mailto:indusventure@vsnl.com
• Industrial Venture Capital Ltd.: mailto:g_kuruvilla@satyam.net.in
• Infinity Venture Capital: http://www.infinityventure.com/
• Intel Technology India Pvt. Ltd.: www.intel.com
• Jafco Investments (Asia Pacific) Ltd.
• Jumpstartup Fund Advisors Pvt.Ltd.: http://www.jumpstartup.net/
• Juris Corp, Advocates & Solicitors: http://www.jclex.com/
• Karnataka Asset Management Company Pvt.Ltd.: http://www.kitven.com/
• Kerala Venture capital fund Pvt. Ltd.: www.keralaventure.org
• Kotak Private Equity Group: a group of Kotak Investment Advisors Limited http://www.kotak.com
• KR Chawla & Co.: http://www.krcco.com/
• Kshitij Venture Capital Fund: http://www.kshitijfund.com/
• Langham Capital Limited: http://www.langhamcap.com/
• Marigold Capital Management Ltd.: http://www.marigoldventures.com/
• Mefcom Capital Markets Ltd.: http://www.mefcom.in/
• Meta Crossover Advisors Pvt. Ltd.: mailto:vyas@metacrossover.com
• Microsoft: http://www.microsoft.com/
• Mohr Davidow Ventures
• Motorola Venture Capital Fund: http://www.motorola.com/
• New enterprise Associate
• New Path Ventures: http://www.newpathventures.com/
• Newmedia Spark
• Nishith Desai Associates: http://www.nishithdesai.com/
• Novastar Capital
• P H Parekh & Co.: http://www.phparekh.co.in/
• Paracor Capital Advisors Pvt. Ltd.: http://www.paracorcapitaladvisors.com/
• Passion Fund: http://www.passionfund.com/
• PE Consulting Investintoindia (P) Ltd.: http://www.peconsulting.in/
• Peepul Capital LLC: http://peepulcapital.com
• Pequot Ventures
• Pinkerton Consulting & Investigations (India) Pvt. Ltd.: http://www.pinkertonindia.com/
• PriceWaterHouse Coopers: http://www.pwc.com/
• PSi Inc.: http://www.psi-world.com/
• Punjab Venture Capital Ltd: http://www.pvcl.org/
• Rabo India Finance: http://www.rabobank.com/
• Rajasthan Asset Management: http://www.rvcf.org/
• Ravi Rakesh: mailto:ravi.rakesh@gmail.com
• Resurgent India Limited: http://www.resurgentindia.com/
• Rohini Management Service pvt ltd: http://www.srirohini.com/
• SCFPL Siemens Venture Capital: http://www.siemensventurecapital.com/
• Sequoia Capital India: http://www.sequoiacap.com/
• SICOM Capital Management Ltd.: http://www.sicomventure.com/
• SIDBI Venture Capital Ltd.: www.sidbiventure.co.in
• Silicon Valley Bank: http://www.svbank.com/
• Sofinnova ventures
• Step Two Corpoartion Limited: http://www.step.co.in/
• Sudit K. Parekh & Co.: http://www.skpgroup.com/
• SUN Group: http://www.scp.ru/
• Technology Holdings: http://www.technologyholdings.net/
• The Carlyle Group: http://www.carlyle.com/
• Timeline Ventures
• Trident Capital
• TSI Ventures: http://www.tsiventures.com/
• United states investments associates LLC
• Unitus Advisors Pvt. Ltd.: http://www.unitus.com/
• UTI Venture Funds Management Company Pvt. Ltd.: www.utiventurefunds.com
• View Corporate Advisors Private Ltd: http://www.viewgroup.com/
• Walden Nikko India Management Co. Ltd.: http://www.waldenintl.com/
• Warburg Pincus India Pvt. Ltd.: http://www.warburgpincus.com/
• Waygate Capital India Pvt. Ltd.: http://www.vjive.net/
• Yes Bank Ltd.: http://www.yesbank.in/

Visit following sites for further information:

1.   www.indiavca.org/mem_directory.aspx: Indian venture capital association

2.   www.indiape.com

3.   www.vcindia.com: Indian venture capital journal provides you more information on venture capital and biotech ventures particularly in India