Investing in the biotech sector
Become an investor in companies with both potentially high returns and social impact. Diversify to help reduce your risks.
We offer the opportunity of investing in companies that have passed an exclusive analysis process in order to help reduce the implicit risk of any investment.
Our investment proposal for you
Why would you invest a portion of your capital through Capital Cell?
TARGET INVESTMENT EXIT HORIZON
TARGET RETURN ON INVESTMENT
OF YOUR INVESTMENT CAPITAL
COMPANY MINIMUM PORTFOLIO
WHY 5-7 YEARS?
The companies that we approve for investment via Capital Cell are developing medical products/solutions that need complicated authorisations, complex sanitary controls and evidence of safety/efficiency in thousands of patients.
All this takes time, and it is very rare that the technology is ready to be used before about 5 years.
Therefore, do not invest money that you may need in the next few years! This investment is not to make fast money – it’s more an investment to potentially pay for your children’s university education in the future.
Why is it potentially lucrative?
You could invest in future drugs that might one day cure cancer, in therapies to cure genetic diseases or in robots capable of operating with absolute precision.
The market for these products can be huge; it is not uncommon for a treatment for a disease to have global sales of hundreds of millions annually.
Why shouldn't I invest everything?
Simple: because firstly you can’t by law, and secondly you cannot sell this type of investment for money whenever you want. If it’s a success, you must wait until the company is sold, dividends are paid out, or the company goes public on the stock exchange. That means you cannot get your money back in the event that you need it more quickly.
Why should I diversify?
Not all the companies that we approve through Capital Cell are going to be successful. We select the ones we believe have a great team, good technologies, adequate market strategies, etc., but market statistics tell us that at least half are going to fail.
That is why it is important to understand that through diversification, companies with an eventual high return can “make up” for those that fail and prevent you from losing all the money you invested.
If you invest in say one or two companies, you might be lucky and make a substantial return, or you can have bad luck and lose everything. In order to lower the risk of losing the money invested, diversification helps spread the risk and moves the centre of concentration of your investment capital across a portfolio.
Therefore, we advise investing more or less the same amount of money in at least 10 companies as the best way to help generate a positive return.
One of the most profitable sectors
Biotech and life sciences can be one of the most viable sectors in the world in the long term- maybe even more so than the Internet, and typically more than say real estate.
Only the companies with the most potential
All the companies we publish have successfully passed our technical, legal and financial analysis and have been approved by some of our network of scientific experts, the BioExpert Network. (Remember though that you must never solely rely on our advice and should conduct your own analysis or find that of an independent expert.)
Invest with professionals
Invest in the same opportunities and at the same price as professional investors. We also invest in every company we publish; we have confidence in our selection.
If you have never invested before and you have questions about how investment in biotechnology works, please visit our FAQs page.
How it works
1. Find investment opportunities that have been part analysed and approved
All investment opportunities published on our platform have been analysed by our own experts in business and science, as well as by the BioExpert Network, an independent network of business and scientific professionals.
Only 3% of the companies that come to Capital Cell successfully pass our screening process.
Investing in startups is intrinsically risky. We invite you to contact the company directly and study the information included in your campaign page.
How we analyse companies
Before publishing an investment opportunity, we check a series of parameters relating to the company and its developers:
- the history of financial statements
- the annual accounts deposited at Companies House
- the credit and liquidity situation
- the financial statements: balance of accounts, profit and loss
- the cash analysis: several months´ forecasts of cash in and cash out
- the analysis of the budget: forecasts of income and expenses for 4 years
- the documentation related to the judicial, tax and social security situation
- the documentation accrediting the intellectual and industrial property
- the proposed pre-money valuation
- the peakfunding and runway: need for company cash
(Please note that this is not an exhaustive list of activities required in Due Diligence but can help reduce the risk of investing).
How to contact the companies
You can request a meeting with the company or ask what you are interested in knowing directly through the campaign page of the company.
Each month, Capital Cell invites investors registered on the platform to attend the events organised with the companies and the live interviews conducted with the founders of the companies.
2. Invest with professional investors
All the investment opportunities we publish are led by experienced business angels or institutional investors who have themselves analysed the company and negotiated its value. In this way, we add one more filter to the company selection process which can help with reducing the risk of the investment.
Steps to making an investment
- Click on the “Invest” button on a campaign page
- Indicate the amount you want to invest
- Complete the suitability questionnaire
- Add your billing details
- Choose the payment method: credit card or bank transfer
- Sign the investment agreement
- Confirm your investment
Where does my money go?
After investing through Capital Cell, your money does not go to Capital Cell nor directly to the company in which you have invested – it is transferred to a deposit account guarded by a financial institution authorised and regulated by the Financial Conduct Authority. The money will only be transferred to the company if and when the funding round is successful, and once the company has completed the corporate formalities that are necessary to issue the shares. If these steps do not happen, the money will be returned to you at no cost.
3. Build your portfolio - diversify
The essence of biotech crowdinvesting is having the opportunity to make small investments of potentially high impact as well as possible high returns. Through Capital Cell, you have the opportunity to invest in companies that have a reasonable chance of yielding a return. If they do and you are lucky, your money can increase considerably, but it is advisable to spread your investment capital through investing a smaller amount of money but in more than one company.
4. Exit of the investment
The exit of an investment is the way and the moment a company hopes to return the monies invested with gains to its investors. In general, the recovery of the investment can occur 5-7 years after the initial investment. Sometimes it can take much longer and if the company does not succeed, it will not occur at all.
MOST COMMON INVESTMENT EXITS IN THE CASE OF A SUCCESSFUL EXIT
- You sell your shares to a third party: a larger company or a competitor acquires or merges with the company in which you have invested
- The company goes public and you sell your shares at market price
- The company buys back your shares thanks to its revenue stream
3300+ registered investors
1500+ investments performed
€3000 average investment per investor
€1,200,000 biggest round
€15,000,000 invested so far
92% of rounds succesfully closed
Sectors that we select
WITHOUT ANY COMMISSION FOR INVESTORS
With minimum investments starting at £100 to help you diversify your investments.
With the same conditions as professional investors.