Due to the procedural rigor required by the medical and scientific communities, biotechnology companies face a unique set of challenges on the fundraising circuit. Here are three tips to help biotechnology entrepreneurs acquire funding for their business ventures.
Focus on the science: In biotechnology, investors typically want to hear about the specific scientific proposition underlying the company. Entrepreneurs should always bring data to investor meetings and be honest about what they do and do not know.
Balance youthful energy with experience: As with almost any other business, experienced leaders can add a great deal of value to a business. However, energy, passion, and youthful enthusiasm also plays a large role in a company’s ability to grow, recruit talent, and develop innovative solutions. Investors usually like to see both aspects in a biotechnology company.
Research your investors: In many cases, biotechnology investors like to focus their activities on specific niches, including early stage, reformulations, and single asset plays. Consequently, entrepreneurs should research their investors and avoid wasting resources on deals that are unlikely to happen.
