National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Life Sciences Incubators See More Funding, Expansion in Next 5-10 Years
Most U.S. life sciences incubators anticipate their funding will increase over the next five to 10 years, with 63% expecting to open additional locations, according to a new survey by CBRE. Such incubators provide startups as small as one or two employees with wet-lab space, office space, mentorship and, in some cases, funding, all at affordable rates.
“Incubators can be a cornerstone of emerging and established life sciences hubs,” said Matt Gardner, CBRE Americas life sciences leader. “In tougher financing environments like this year and last, incubators play an even greater role for the industry in nurturing the next generation of companies. This also is another reason why the life sciences sector goes through longer cycles than the broader economy.”
CBRE’s survey confirmed the long-held practice of most incubators getting their funding from public or quasi-public sources: Government agencies back 43% of the incubators in the survey, and academic institutions 14%. Private funding sources claim the next largest contingents – self-funding at 14% and venture capital at 9%.
Biotech startups don’t comprise the majority of incubator tenants, the survey found. Instead, most survey respondents that answered the question on tenancy said it was medical device makers.
- ◦Development
