Biotech startups are a high-risk venture and many do not reach the final line. Experts explain what the most common reasons for failure are and what can be done to avoid them.
You might have heard that only 10% of startups make it. Well, biotech startups can have it even harder. Unlike the typical tech startup that can launch a product within months, a biotech company often requires several years of intensive cash burning before its first product reaches the market. That is, if it doesn’t fail all the testing that regulators require.
But failure is the best way to learn how to do things better and increase our chances of getting it right the next time. Here’s the advice of experts (in both success and failure) on mistakes to avoid for those who want to venture into the biotech world.
1. Flawed financial strategy
Finance is always a challenge for a startup. The challenge is even greater for biotech startups, which need to raise significantly more money and make sure it lasts long enough.