Capital access, mentoring holding back entrepreneurs

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Michael Sheffield

Senior Staff writer- Memphis Business Journal

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Connecting to resources and the tapping out of incentives or capital growth programs are two issues hampering upstart "life science" businesses in Tennessee.

A new report compiled by Life Science Tennessee and Baker Donelson law firm surveyed 90 Life Science Tennessee members, and outlined opportunities and obstacles for life science entrepreneurs in the state.

Issues in the "State of Life Science Entrepreneurship in Tennessee" report were divided into five categories: access to capital; the transfer of technology to commercialized products; access to services such as manufacturers; workforce sustainability; and availability of support from mentors.

The need for more capital was identified as a primary issue because the TNInvestco and INCITE funding programs, which have been used by 80 percent of life science entrepreneurs in Tennessee, may become fully allocated.

The report found 53 percent of entrepreneurs believe the state doesn't have enough resources to turn inventions into commercial products. The lack of connection with other companies was the second-most pressing need, along with the need for mentoring opportunities.

To address this issue, LaunchTN is launching a mentor network.

"Given the state's significant academic research base, core strengths and corporate investment, we know that there is far more potential for quality start-ups in all regions," Steve Bares, chairman of Life Science Tennessee and president and executive director of Memphis Bioworks Foundation, said. "There is an opportunity to support this research and commercialization by incentivizing capital, as well as making parallel investments in accelerators, in venture development organizations, and in support activities that will help grow more quality deal flow and company creation than we have even seen to date."

Michael Sheffield covers bioscience and biotechnology; manufacturing; tourism and hospitality; and sports business. Contact him at msheffield@bizjournals.com.