The Italian biomedical market is experiencing a period of significant expansion and innovation, driven by the adoption of digital solutions aimed at improving operational efficiency and fostering new growth opportunities for companies operating in the sector. This combination of factors is revolutionising the way biomedical companies obtain financing and provide services, opening up new opportunities and promoting overall market growth.
According to recent data, the Italian biomedical market has experienced significant growth in recent years, with a compound annual growth rate (CAGR) exceeding the European average. In the period 2015-2020, the Italian biomedical market grew at a CAGR of 6%, reaching a value of more than EUR 10 billion. This positive trend is fuelled by technological innovation, the growing demand for advanced healthcare solutions and the need to improve the efficiency and accessibility of healthcare services.
SFP and blockchain: simpler financing with total transparency
Participatory financial instruments, or PFS, are a category of instruments used to finance companies or projects that involve the direct participation of investors in the capital or profits of the company. These instruments offer investors the opportunity to invest in companies in a different way than buying traditional shares or bonds. Among the most popular participatory financial instruments are equity crowdfunding and minibonds.
In this context, minibonds have emerged as an alternative form of financing for Italian biomedical companies. These instruments allow companies to issue low-cost corporate bonds, offering flexibility in repayment terms and enabling them to finance long-term research and development projects. One of the main attractions of minibonds is their ability to access a larger pool of investors than traditional banking channels, providing biomedical SMEs with greater accessibility to the capital they need to grow and innovate.
One of the main advantages of using minibonds and other blockchain-based financial instruments in the biomedical sector is the increased accessibility of capital for small and medium-sized enterprises (SMEs) in the sector. Biomedical SMEs, often characterised by a high degree of innovation but with limited financial resources, may find it difficult to obtain financing through traditional banking institutions. However, minibonds give them access to institutional and individual investors, expanding the pool of available lenders and reducing dependence on banks.
Furthermore, the use of blockchain technology to facilitate the negotiation and management of minibonds offers greater transparency and security in the funding process. Blockchain, being a distributed and immutable ledger, allows biomedical companies to securely record and share information about their minibonds with investors. This increases investor confidence and reduces the risk of fraud or manipulation, creating a more favourable environment for investment in the biomedical sector.
Smart Contracts for greater system efficiency
Another significant advantage of using blockchain in biomedical financing is the possibility of implementing smart contracts. These self-executing digital contracts are encoded on the blockchain and are automatically activated when certain pre-defined conditions are met. In the context of minibonds, smart contracts could automate the process of paying interest to investors according to the conditions set out in the contract, simplifying debt management for biomedical companies and ensuring greater compliance with contractual terms.
Furthermore, using blockchain to issue and manage minibonds can reduce the costs and time associated with the registration and trading of financial securities. Since blockchain eliminates the need for centralised intermediaries such as banks and stock exchanges, transactions can be executed more efficiently and at a lower cost. This makes minibonds a more convenient financial solution for biomedical companies, saving them time and money in raising capital.
The next challenges
However, despite the numerous advantages offered by minibonds and blockchain in the Italian biomedical sector, there are also challenges to be faced. One of the main difficulties is the need to educate and raise awareness of the potential and benefits of these instruments. In fact, many companies are still sceptical and reluctant to use alternative finance instruments to raise capital due to security concerns or technical complexity.
In this regard, it is crucial that financial education efforts are supported by an appropriate regulatory framework. Regulators must work closely with industry players to develop clear and transparent rules that foster the adoption of these innovative financial instruments and protect investors' interests.
In conclusion, the digital transformation and the increasing development of alternative financial instruments to banks, which are revolutionising many markets in Italy, is also being felt in the biomedical sector. These new instruments improve access to capital especially for innovative SMEs and increase transparency and efficiency in the financing process. However, in order to maximise the benefits of digital transformation, challenges need to be addressed and we need to work together to create an environment conducive to the adoption of innovative solutions that foster growth in the sector.
An example of collaboration between partners in the biomedical sector and alternative finance is GBS, the next campaign coming to our platform. GBS has chosen 2meet2biz.com to raise the necessary capital to support the company's next phase of growth. Further details are available here.