Starting a Biotech Company - Finance
Discussion
Probably get moved to the Business bit but while I'm here -
I know a man who can, in terms of doing clever Biotech stuff.
He's now retired and getting bored.
He now wants to try to do something clever in the Biotech game (that's what he's got lots of degrees, PhD etc in) via his own Company.
He thinks I'm the guy for money advice (not sure why), so he asked me if I knew how he could fund this.
I've no idea how he would go about starting his own Biotech Company or how funding is secured on such ventures.
Anyone here done a similar thing and care to share their experience / tips etc.?
He's not the Dragons' Den type.
I know a man who can, in terms of doing clever Biotech stuff.
He's now retired and getting bored.
He now wants to try to do something clever in the Biotech game (that's what he's got lots of degrees, PhD etc in) via his own Company.
He thinks I'm the guy for money advice (not sure why), so he asked me if I knew how he could fund this.
I've no idea how he would go about starting his own Biotech Company or how funding is secured on such ventures.
Anyone here done a similar thing and care to share their experience / tips etc.?
He's not the Dragons' Den type.
Typically angel investment / seed capital type arrangements to get anything innovative off the ground *but* investors are going to expect:
1) That he will have skin in the game too; and
2) To see real commitment (depending on age, that could present something of a hurdle).
The hardest part isn t usually the funding. It s building for growth: product strategy, development, team. That d be especially important in biotech where there s a regulatory landscape to navigate along with sales channel complexity.
If he s clued up, he ll either recognise the above and seek out investors who can help or, if he can cover it all off well, attract dumb money.
The more people bring to the table beyond just money, the more they expect that to be reflected in their returns.
1) That he will have skin in the game too; and
2) To see real commitment (depending on age, that could present something of a hurdle).
The hardest part isn t usually the funding. It s building for growth: product strategy, development, team. That d be especially important in biotech where there s a regulatory landscape to navigate along with sales channel complexity.
If he s clued up, he ll either recognise the above and seek out investors who can help or, if he can cover it all off well, attract dumb money.
The more people bring to the table beyond just money, the more they expect that to be reflected in their returns.
I know some people in the biotech startup game. I'm not expert but my impression is different, the main part of the job is attracting the investment. Go to Cambridge and throw a rock and hit an underemployed scientist. I've heard stories of 200 applicants day one, for roles in biotech startups. Leaders who can get things moving are rarer and often have history in the game
It's pure venture capitalism. ie makes more sense as part of a diversified investment portfolio. Even really promising drugs with successful trials, very rarely reach approval. Failure rate 90%+. Winners fund the losers. So any leader needs to understand how the odds add up, and the investment landscape, know the right people, and probably been lucky in the past to build some kind of track record.
It's pure venture capitalism. ie makes more sense as part of a diversified investment portfolio. Even really promising drugs with successful trials, very rarely reach approval. Failure rate 90%+. Winners fund the losers. So any leader needs to understand how the odds add up, and the investment landscape, know the right people, and probably been lucky in the past to build some kind of track record.
Edited by lizardbrain on Sunday 15th February 14:50
I actually think we’re agreeing: the idea is important but execution/commercialisation take a slightly different skill set to pure science.
Have seen it first hand when relative was working on some interesting medtech and the founders couldn’t see that there was an imperative to move very quickly on the commercial front and/or that connections were what was needed. I still wish they’d let me make a couple of calls as what they’d developed was both groundbreaking and of huge potential.
Have seen it first hand when relative was working on some interesting medtech and the founders couldn’t see that there was an imperative to move very quickly on the commercial front and/or that connections were what was needed. I still wish they’d let me make a couple of calls as what they’d developed was both groundbreaking and of huge potential.
(Multiple biotech startup (bootstrap and VC) + a bit of corporate)
No where near enough detail to be able to even start to advise.
Tools and tech? Consultancy? Therapeutic or research applications etc etc… to even begin to be able to answer.
If he thinks he’s wanting money then try get seis investment to get off the ground, but even that may be boloney depending what he’s on about.
No where near enough detail to be able to even start to advise.
Tools and tech? Consultancy? Therapeutic or research applications etc etc… to even begin to be able to answer.
If he thinks he’s wanting money then try get seis investment to get off the ground, but even that may be boloney depending what he’s on about.
Gassing Station | Finance | Top of Page | What's New | My Stuff