For Life Sciences Companies

Clinical Trial Costs (in $ Millions) by Phase and Therapeutic Area

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Drug discovery and medical device research are expensive. Going from Phase 2 clinical trials to FDA approval can cost  $25 million to hundreds of millions for R&D.  Tokenizing traded assets can help fund these life-changing programs. 

Cost Benefits of Digitization vs. Traditional Private Placement

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An Initial Coin Offering (ICO) is also called a Token Generation Event. It compares to a typical Series A Round in venture capital. It is about 40% cheaper to do an ICO than to raise money from a private placement.

Where to Start? A White Paper and Token Economics

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Your White Paper combines a detailed presentation of the project and a business plan in one document. It tells ICO participants about your startup, shows the company’s business potential, competitive advantages, business model, and presents your road map for development.   

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Legal

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Regulations we follow:

  • Regulation D (Reg D) is a Securities and Exchange Commission (SEC) regulation governing private placement exemptions.  Under the exemption 506(c) a Security Token Offering can be generally advertised, sold to Accredited Investors only, and there is no limitation on the amount that can be raised. So far, this is the most common used SEC exemption for security tokens.  Reg D allows companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. 
  •  Under Reg S, an issuer can sell their security token to non-US investors in offshore transactions without having to register the sale of securities with the SEC. Regulation S (Reg S) provides an exclusion from the Section 5 registration requirements of the Securities Act of 1933, as amended (the “Securities Act”).    

Consult your legal advisor. 

Definition of an accreditied investor. 

Let's Promote Your Research

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What are you working on?  Care to share? Send us details and we will consider for our funding programs. science@lifesciencescapital.com


As we connect with the community we are glad to share with others your valuable work and wants and needs. 

Looking to Raise Expansion Capital?

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  • For companies, the typical hard cap target raise from an  ICO is between $5-$75 million. This depends on the company potential, offering terms and market conditions at the time. 
  • If you have looked at doing an ICO on your own, you need $300,000 to $400,000 to start for legal, operational and marketing costs. If you need to do public marketing to attract investors that can soar to over $1 million.
  • As a rule of thumb for a single company ICO capital raise, you should budget 8-12% of target hard cap raise for all legal, operational and marketing costs. 
  • Our model supports continuous crowdfunding of top companies on the platform that reduces the technical, underwriting, marketing, and compliance costs through economies of scale. 

Set up a call to discuss

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