Spanish bioprinting company REGEMAT 3D opened a crowdfunding round through Crowdcube that attracted its minimum investment target in seven days. The company sought 300 000 euros to fund its international expansion. The funding round continues until it reaches three million euros, which the company hopes to achieve through its multiple sources funding action plan. This plan looks to raise money from large and small private and public sources. Some of the funding will be obtained through soft loans.
REGEMAT develops and produces systems that can bioprint tissues and organs. The company focuses on developing bioprinters and bioreactors. It currently markets its products in more than 25 countries with an ambition to become the gold standard for regenerative medicine. The company’s business model includes support to external researchers generating intellectual property in areas of interest.
Bioprinting is of increasing interest as a branch of regenerative therapy because the technology can create living tissues that regenerate lesions and organs. The printers combine cells, biomaterials and other biomolecules to create three-dimensional shapes. The products can be used to graft over lesions or replace entire organs. Innovation in this field is ongoing and sustained.
REGEMAT’s market share is all but assured because increases in life expectancy and diseases related to aging draw attention to regenerative therapies. Age distribution in the United States, for example, has an increasing proportion of people aged over 65. In 2009, 12.76% of the American population was over this figure; by 2019, 16.21% of the population was aged 65 or more. Population statistics in China show a similar trend. These are just two examples of sizeable markets that might need regenerative therapies in the coming decade: REGEMAT’s prospect for enhanced market share looks very positive.
The company remains in its research and development phase, hence its need for funding. Sales amounted to 682 900 euros in 2019. The company leverages its manufacturing ability to implement new research from partners, who have the option to invest more than their intellectual property.
REGEMAT’s use of Crowdcube to obtain additional funding allows small-capital investors to take an equity stake in the company and its growth. Crowdcube works to raise capital for entrepreneurial businesses from private sources. In REGEMAT’s case, the company grants a 2.05% equity stake in the company shared across Crowdcube investors. This innovative funding approach is a useful tool for up-and-coming additive manufacturing businesses, and REGEMAT shows how crowdfunding can be used to complement more traditional venture capital and loan funding.