Dry Powder Bio hopes to bring digital tokens to back biotechnology-based research
Investor capital for the biotechnology and clinical research sector is more difficult to obtain than the capital for technology and real estate sectors. It is harder to find investors for this branch of science partly because it can be difficult to understand. Another factor that makes it difficult to find investors is investment returns in biotechnology also take longer in general than in other sectors. Still, it is no secret that there is a considerable return of investment if a new drug, device, or something else makes a significant impact on a patient's life.
Dry Powder Bio, Inc. operates an online community and marketplace connecting biotech company founders, investors, clinicians, suppliers, academia, government, patient advocacy groups, and professional services provider groups. Their objective is to facilitate collaboration, research, and investment in medical solutions.
One of Dry Powder Bio's specializations is data transformation using emerging technologies, including AI, big data, and the cloud. To achieve an easier way to pool funding for research and development, the company is studying the use of digital tokens into the world of biotechnology funding.
Digital Tokens For Biotechnology
Building an ecosystem that helps expand funding research and speed up drug discovery, Dry Powder Bio suggests that digital tokens can bring more funds to biotechnology-based research and development, which can reduce friction and are more successful at attracting more early-stage investors. These tokens can be traded between milestones like phases one and two of a clinical trial.
By tokenizing assets, assets can be translated into a digital token that can be transferred, stored, and recorded in a blockchain. The use of digital tokens allows investors to inherently trade shares between stages more conveniently.
With this mission to expand funding for research, Dry Powder Bio plans to build a tokenized blockchain ecosystem that utilizes digital tokens for equity fundraising, payment transfer, and reward incentives for work and services completed. This would result in faster and more efficient capital raising is necessary for biotech and healthcare companies to progress.
The importance of tokenizing assets is that it will attract a number of investors. This is because they can sell their shares within one to three years from one clinical trial stage to the next. Investors no longer have to wait eight to ten years for the final approval to get their money back.
An additional benefit of this tokenized blockchain ecosystem is it makes investing in potential cures or treatments easier for patients and families affected by specific diseases. Additionally, they can be compensated for recruiting other clinical trials participants and get returns for any success generated by finding new cures or treatments.
By tokenizing assets, more funding can now be placed in areas of medicine that do not usually get a lot of funding, such as rare diseases.
More Funding for Rare Diseases
Rare diseases refer to diseases that affect fewer than 200,000 people. Rare diseases do not receive adequate research funding because most pharmaceutical companies do not see the potential for a return on investment due to the small population of people affected by the disease.
The number of accredited investors who understand biotech and life sciences is small. Digital tokens can lower collaboration costs and ease friction making it more attractive to early-stage investors. Dry Powder Bio continues to explore how digital tokens can raise capital for investment, fund researchers, pay clinical laboratories, and pay caregivers and patients for participating.
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