The results of industry group France Biotech’s Life Science Panorama 2010 survey emphasize the emergence of a second generation of—and government support for—biotech firms in the medtech, environmental and renewable energy sectors. The analysis, released March 30, includes responses from 211 companies and reveals that despite increases in fund raising and staff in 2010, 33% of companies experienced financial hardships. Twenty percent of companies admitted to cash flow difficulties, and 27% had to raise funds. Seven percent of companies laid off staff in 2010, and 5% said they will have to do so this year. Twelve firms went out of business. YIC status, which offers tax breaks to firms younger than eight years old, was extended to 14 companies in 2010. Government innovation agency Oséo spent €42 million ($60.6 million) on 344 projects. In addition, Oséo’s Strategic Industrial Innovation program invested €58 million in six pharmaceutical/biotech projects. Pharmaceutical/biotech projects accounted for 10% of Oséo’s innovation support budget. After a 65% decline in 2009, venture capital investment grew 56% to €148 million in 2010. Seed capital funding and first-round financing declined 10% to €20 million.

Source: Science Business