Report: KC needs (a lot) more venture capital
October 15, 2015 | Ashley Jost
The Kansas City Area Life Sciences Institute released a report that says Kansas City needs more venture capital for its biotech industry.
Just how much venture capital? That is up for debate.
Wayne Carter, Life Sciences Institute CEO, said $100 million is the common amount thrown around in conversation regarding Kansas City’s need, and while “it’s a good place to start, it’s not enough,” he said.
“Saying we need $100 million in venture capital funding is not the end game,” he said. “We need to create an entire ecosystem of funding.”
Despite a growing life sciences community that is recognized for drawing interest, risk capital investment is a weakness in the Kansas City area Carter said, summarizing the findings of the report that Life Sciences Institute and Deloitte released this month.
The report identified and prioritized opportunities for the region to be more successful in life sciences, and investment was a primary strategy.
“It’s almost like we’re pushing companies away,” Carter said. “We just don’t have money here. If you’re an early stage business in Kansas City, you’re probably going to start with meeting investors in regional states, but more than likely you’re going to have meetings in California or Massachusetts.”
And what happens if Kansas City doesn’t get to that magic number of $100 million in venture capital?
Carter said it’s likely the region will continue to grow, but at a much slower rate. Furthermore, if outside investors sign a deal with area companies, the businesses almost always relocate, meaning the region will miss out on prospective jobs, revenue and other economic opportunities.
Featured Business
2015 Startups to Watch
stats here
Related Posts on Startland News
Kauffman survey: Women more critical of their own early-stage entrepreneurial efforts
Women entrepreneurs are more likely than their male counterparts to grade their performances harshly during the first year of business, though that tendency typically fades over time, according to a new survey by the Ewing Marion Kauffman Foundation. It often is about approaching the venture a realistic viewpoint, said Jeff Shackelford, executive director of Digital…
Video: ShotTracker fan app courts NAIA tourney crowds with AR experience
A new ShotTracker fan app — expected to launch today — will combine real-time analytics with augmented reality for a first-of-its-kind fan engagement opportunity at next week’s Division 1 NAIA basketball tournament, said co-founder Davyeon Ross. “We want to make the experience as great as possible for the end user,” Ross said, noting his company’s…
TechAccel, UC Davis lab developing wheat seed to combat climate change
A Kansas City-based tech and venture development firm hopes to engineer wheat seeds that produce higher yield by withstanding warmer temperatures. “We’re taking a concept that is pretty important for wheat worldwide,” said Brad Fabbri, Chief Science Officer of TechAccel. Increasing temperatures make growing wheat more difficult across the globe, studies show. Reports indicate climate…
Startup stakeholders: Opportunity zones could prompt culture shift on redevelopment
Startup community stakeholders think opportunity zones in some of Kansas City’s poorest areas could work, but only with collaboration between the government and private sector. A number of low-income communities in Kansas City are eligible for designation as opportunity zones — areas in which investors may defer paying capital gains taxes over a certain period…