Have you ever had one of those eureka moments where you thought of that million-dollar idea? Alright, so maybe it doesn’t always work that way (insert hard work here), but would you know what to do if you wanted to develop your idea into a biotech startup?
Yesterday I had the opportunity to attend an event sponsored by Bioentrepreneur (part of Nature Biotechnology), a portal for scientists interested in commercializing their research. The site offers informative articles on various aspects of biotechnology entrepreneurship, ranging from technology transfer to business development. It also offers a listing of events that may be of interest to young biotech companies. If you are interested in developing your scientific ideas into a startup company, this site is an excellent resource.
But I am getting off track, back to the event. As a pilot of (hopefully) many future events to come, Bioentrepreneur hosted Ron Cohen, medical doctor-turned-successful entrepreneur, to speak about his experiences in working for and starting up biotech companies. Cohen has quite a resume. Not only did he serve as principal at a startup called Advance Tissue Sciences, he is the founder of Acorda Therapeutics, a publicly traded biotech company that develops therapies for spinal cord injury.
Cohen took the audience through every step of the startup process. In a business where a good idea can only get you so far, Cohen discussed the importance of hard work and perseverance. The main obstacle, and measure of success, is raising money to support your ideas. There is even a hierarchy to how one should raise money for a biotech startup1. Based on where you are in the process, you can find money from donors, grants, loans and corporate partnerships. To do this successfully Cohen stressed the importance of surrounding yourself with an experienced, reliable team. You need all kinds of people: lawyers, communication specialists, scientists, advisors, financial specialists and a marketing team. Equally important as having a good team is having thick skin. When starting up a biotech company, you are sure to face disappointment at one time or another and need to persevere. Cohen also stressed the importance of successfully finding a lead venture capital (VC) firm who will fund your startup once it has started growing. Without the lead VC firm, the one responsible for anchoring the deal, setting the terms and due diligence, you will be unable to find additional funding from other, following VC firms and your company will ultimately go under. Finally, Cohen discussed the importance of optimism, which seems critical to succeed in the world of biotech startups.
In the rough world of the biotech and life science startups, advice like Cohen’s is highly coveted. For all those interested in this field, keep an eye out for future Bioentrepreneur events that may help you on your path to success.
1 You can view Cohen’s article Six Steps to Successful Financing, which describes the funding hierarchy in biotech, here (courtesy of Bioentrepreneur).