Biotech investment rounds tend to draw big headlines, but experienced players know the real work is done in between them. Avoiding some common pitfalls can make the difference between petering out and pressing on.
Managing a biotech startup means always keeping an eye towards the next financing round. But piquing the next investor’s interest requires more than just staying afloat–it means managing relationships with current investors, developing a long-term strategy with room for adaptation, taking steps toward concrete milestones, and setting aside the academic mindset.
No amount of planning can help when it comes to the number one risk for any early-stage company: the science may just not work. According to João Ribas, Senior Associate at Novo Seeds, “these companies tend to be ambitious companies with ambitious founders, working on breakthrough science.” That risk is part and parcel of being a biotech, or a biotech investor, he says.
Novo Seeds, the early-stage investment arm of Novo Holdings, both invests in spinouts and builds companies from scratch with academics,