When it comes to market research, people automatically think of how it can serve the needs of the behemoth corporations or the hopeful start-ups. But, there are numerous market research customers that aren't quite the first to mind but are certainly extremely interested users of research. The role of an industry investor may seem simple to the average person: invest in a profitable company, market segment, industry, etc. and make loads of money. However, nothing is ever quite that simple, and investing is certainly no different. So, let's take a look at insights from leading market research publisher in the stem cell industry, BioInformant Worldwide, L.L.C., to see an example of how industry investors can best use market research to make quick and educated decisions for increased profit.
Understanding the Roles of Industry Investors
As the global leader in stem cell industry data, BioInformant has been serving a range of clients since 2004, including pharmaceutical giants, biotech industry leaders, consultancy firms, thought leaders within academia, and many more. However, there is a unique and special type of client that it has been serving more and more frequently over the past 12 months. This is a fast-acting and decisive client, one who requires immediate market insights, because time is always of the essence. This client is the Industry Investor.
Within stem cell markets, there are three primary types of investors, which are the:
- Venture Capitalist
- Investment Bank
- Private or Angel Investor
To understand the similarities and differences among these individuals, it is critical to compare the business models of each.
First, venture capital firms are businesses that manage a collection of investments, usually early-stage, high-potential, and high-growth companies. A venture capital firm earns money by owning equity in the companies in which it invests. As described by the U.S. Small Business Administration (SBA), venture capitalists offer financing that addresses the funding requirements of entrepreneurial companies that “cannot seek capital from more traditional sources, such as public markets and banks." These firms typically invest in companies which are bringing to market a novel technology or business model.
Similarly, investment banks can provide funding to companies with the goal of earning a return on their investment. However, investment banks may capitalize many different kinds of businesses and may also invest money in other options besides new ventures, such as commodities and bonds. They can also assist corporations in raising capital by underwriting or acting as the client's agent in the issuance of securities. As such, they tend to have slightly more diversified flow of income.
Finally, private or angel investors are wealthy individuals who provide start-up funding for companies, usually in exchange for ownership equity or convertible debt. Convertible debt is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. An increasing number of angel investors are now organizing themselves into angel groups to share research and pool their investing capital, as well as to provide oversight to their portfolio companies.
The Commonality among Industry Investors?
The commonality among all three types of industry investors is that they directly benefit from the success of the company in which they are investing. As such, each is highly motivated to execute due diligence and make wise investment decisions. Furthermore, industry investors nearly always have a precise and immediate need that must be met. Meaning, they are often willing to claim a premium market intelligence experience, if it will:
- Ensure that they receive exactly the market insights which are required
- Within a fast turn-around time, and…
- Include access to knowledgeable individuals as part of a “package deal”
More specifically, industry investors are seeking to be empowered, so as to make an immediate decision about whether or not to enter a market. They also want direct and personalized support for their needs.
Time Is of the Essence
As mentioned, industry investors often need to get rapidly educated on an opportunity. In several instances, BioInformant has had clients claim its stem cell industry data only hours before a large meeting or presentation. More than once, it has had clients claim industry data as they board a flight to discuss deal terms and conditions with another party when they land.
In these cases, BioInformant works closely with its clients to ensure that its content will be immediately available for digital download - in laptop, tablet, and smart phone compatible formats - allowing for consumption of the content in flexible formats.
Additionally, with text-to-speech apps available for the iPhone/iPad, anyone can now listen to market intelligence content in audio format as he or she travels. (Note: BioInformant highly recommends “Speak It! Text to Speech” and “Web Reader HD” for your text-to-speech needs, as these apps can read digital PDF files for you on the go.) Your market intelligence provider should be diligent about assisting you with this option if you are in a time-sensitive situation.
Finally, you should expect complimentary phone support from your market intelligence provider, so that if questions arise, you can schedule a call with them to immediately clarify your thinking and approach. At BioInformant and MarketResearch.com, this is part of the “package offering,” meaning that market intelligence comes bundled with unlimited support. No matter which market intelligence provider you select, you should expect this type of service, too.
Go Forth and Profit
Clearly, industry investors have a unique set of needs. You are making high-pressure decisions and doing high-stakes deals. You must do a robust analysis of market opportunities and execute within a fast turn-around time. Most importantly, you stand to benefit from making wise investment decisions.
To know that your market intelligence provider can best deliver on your needs, BioInformant suggests that you review their client list to confirm that they serve other industry investors and have experience dealing with individuals who share your needs and expectations. It's also suggested that you choose an established market intelligence provider who has at least five years of trailing data to establish the accuracy of their market size determinations and projections. Finally, it is in your best interest to seek out companies that will offer you complimentary follow-up support, as you deserve an industry expert to guide you toward unlimited success.
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Editor's Note:
The blog post is written by Lance Breastgoff, Head of Project Management at BioInformant Worldwide, L.L.C.
**Introduction paragraph written by Ashlan Bonnell, Managing Editor at MarketResearch.com.
About BioInformant Worldwide, L.L.C.:
BioInformant is the only market intelligence company that has specifically served the stem cell sector since it emerged, and their singular focus allows their team of technology specialists, business analysts, and scientific experts to produce data that enables company decision-makers to better understand their markets, competitors, and customers. The advantage of this to you is that you will receive accurate, precise data for the stem cell product market to intelligently and profitably inform your decision-making. Serving Fortune 500 leaders that include Pfizer, Goldman Sachs, Beckton Dickinson, and many more, BioInformant enjoys the status of a premium market research services provider in the industry.
