Red Herring had a great article the other day about the business challenges facing stem cell research. Specifically, the article addressed how early stage biotechnology firms can get funding for their initial research.

With most biotechs, government agencies provide funding. Unfortunately, that’s not an option for stem cell researchers because the Bush administration has made it quite clear that they don’t support government backed stem cell research. Many companies are turning to foreign investments.

More recently, California has started funding stem cell research. Last month, California’s Stem Cell Agency approved $45 million for stem cell research - and they’ve just authorized $75.7 million more for 12 non-profit academic institutions.

Hopefully other states will soon follow California’s lead.