University Library
  • Login
A gateway to Melbourne's research publications
Minerva Access is the University's Institutional Repository. It aims to collect, preserve, and showcase the intellectual output of staff and students of the University of Melbourne for a global audience.
View Item 
  • Minerva Access
  • Arts
  • School of Historical and Philosophical Studies
  • School of Historical and Philosophical Studies - Research Publications
  • View Item
  • Minerva Access
  • Arts
  • School of Historical and Philosophical Studies
  • School of Historical and Philosophical Studies - Research Publications
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

    Venture funding for science-based African health innovation

    Thumbnail
    Download
    Published version (244.8Kb)

    Citations
    Scopus
    Web of Science
    Altmetric
    4
    2
    Author
    Masum, H; Chakma, J; Simiyu, K; Ronoh, W; Daar, AS; Singer, PA
    Date
    2010-12-01
    Source Title
    BMC International Health and Human Rights
    Publisher
    BIOMED CENTRAL LTD
    University of Melbourne Author/s
    Singer, Peter
    Affiliation
    School of Historical and Philosophical Studies
    Metadata
    Show full item record
    Document Type
    Journal Article
    Citations
    Masum, H., Chakma, J., Simiyu, K., Ronoh, W., Daar, A. S. & Singer, P. A. (2010). Venture funding for science-based African health innovation. BMC INTERNATIONAL HEALTH AND HUMAN RIGHTS, 10 (SUPPL. 1), https://doi.org/10.1186/1472-698X-10-S1-S12.
    Access Status
    Open Access
    URI
    http://hdl.handle.net/11343/255069
    DOI
    10.1186/1472-698X-10-S1-S12
    Abstract
    BACKGROUND: While venture funding has been applied to biotechnology and health in high-income countries, it is still nascent in these fields in developing countries, and particularly in Africa. Yet the need for implementing innovative solutions to health challenges is greatest in Africa, with its enormous burden of communicable disease. Issues such as risk, investment opportunities, return on investment requirements, and quantifying health impact are critical in assessing venture capital's potential for supporting health innovation. This paper uses lessons learned from five venture capital firms from Kenya, South Africa, China, India, and the US to suggest design principles for African health venture funds. DISCUSSION: The case study method was used to explore relevant funds, and lessons for the African context. The health venture funds in this study included publicly-owned organizations, corporations, social enterprises, and subsidiaries of foreign venture firms. The size and type of investments varied widely. The primary investor in four funds was the International Finance Corporation. Three of the funds aimed primarily for financial returns, one aimed primarily for social and health returns, and one had mixed aims. Lessons learned include the importance of measuring and supporting both social and financial returns; the need to engage both upstream capital such as government risk-funding and downstream capital from the private sector; and the existence of many challenges including difficulty of raising capital, low human resource capacity, regulatory barriers, and risky business environments. Based on these lessons, design principles for appropriate venture funding are suggested. SUMMARY: Based on the cases studied and relevant experiences elsewhere, there is a case for venture funding as one support mechanism for science-based African health innovation, with opportunities for risk-tolerant investors to make financial as well as social returns. Such funds should be structured to overcome the challenges identified, be sustainable in the long run, attract for-profit private sector funds, and have measurable and significant health impact. If this is done, the proposed venture approach may have complementary benefits to existing initiatives and encourage local scientific and economic development while tapping new sources of funding.

    Export Reference in RIS Format     

    Endnote

    • Click on "Export Reference in RIS Format" and choose "open with... Endnote".

    Refworks

    • Click on "Export Reference in RIS Format". Login to Refworks, go to References => Import References


    Collections
    • Minerva Elements Records [53039]
    • School of Historical and Philosophical Studies - Research Publications [1520]
    Minerva AccessDepositing Your Work (for University of Melbourne Staff and Students)NewsFAQs

    BrowseCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects
    My AccountLoginRegister
    StatisticsMost Popular ItemsStatistics by CountryMost Popular Authors