What do an experienced researcher expect from working in a startup in Biotech field ?
Leo S
Monday, 11 February 2008 08:13 UTC
I
have been interacting with many eminent researchers from the field of
biotech, medical technologies etc. in India/abroad for past few years
to know what do they really need from working with a startup. This to
sensitize myself to the issues/concerns/requirements of an individual
researcher about working in a startup. Though there are lots of
entrepreneurial activity going around in IT and web space in India,
there are not many interesting startups in Biotech or Medical
technology space. This is also due to the risk averseness amongst the
research community in India. Being a budding entrepreneur am on lookout
for people with knowledge and a passion to take it further. I hope this
forum would give certain insights into what researchers need from a
startup to make it a win-win situation for both.
Suggestions welcome..
-
Replies
-
Well this response may not be considered from India. I am US based researcher. The key things (listed without priority) I would look at before shaking hands
1) What is the USP/USI: Unique selling product or idea the new start up is coming up with. I will do my own analysis that how that fit best in the present day biotech world
2) What are the sources of funding: If you are backed by a single venture capitalist or by a single financial institution…it’s no no from my side…a pool of resources does not only reflect that new start-up have a good back-up but also suggest that idea has been gone through multiple executive committee meetings and it is well established (that’s why many people are ready to fund you)
3) Will I get a chance to be involved in innovation: If the stream or the idea is so very well set that new biotech is just testing it on multiple platforms…again no no…Because my innovative utility will be zero in new environment…being a scientist I would like to see whether there will be freedom to innovate
4) Will I be a part of the team or a mere new hire: If I see good chance of involvement in business decisions, it will be worth considering or else I will be one more technician in the new lab
5) Percent of stock option and growth plan of the company: Based on my expertise and its requirement in new set up’s technical-space, if my work is of value what percent of stock option will I be having. What are the future plans of the company to go public…to be a private limited or what etc etc..
6) Team: What’s the background of other members of the group is a key decision factor. If a bunch of new MBAs/PhDs are starting it…then I will think twice (not everything in this world is Google, hotmail or yahoo) especially in biotech/biopharma sector. It’s a solid game of experience plus innovation.
And many more….message me through Nature-Network if need any clarification….
-
Thank You Chaitanya for your points. Each one of those reflect the real concerns of a researcher looking for options in a start-up.
I would be lucky if I could get such expertise from India who are already aware of your points on Idea, Team, Chance to be part of innovation, stock options etc. Coz I find it very difficult to convince someone with stock options in India, leave apart other points.
Also I would like to add that, the points you mentioned might be true for a Perfect startup in US. Most of the startups in India would lack in any of those points(mostly in team and funding). It is too much of risk mitigation to get all those points right. I would say in India they apply to early stage companies and not startups (contrary to US counterparts). Here it is really hard to get someone who would dirty their hands first with the promoter by risking their paychecks. :) -
Though I know couple of people in India who started their own work and even received funding from various domestic and international institutions, however I still may agree with you because I have no experience of Indian environment.
Theoretically, you can avoid risking people’s paycheck by first convincing local financial institution to bear the smaller risk. An extensive market research and a decently created business plan (Executive summary) should be able to secure funding for a small team (of 2 or 3 people) for a year or two. That will buy the time for the team to work 24/7 to make a great executable plan. You may not be able to payback the initial money but you will be having a greater chances of securing more money from bigger institutions, which partly will pay back the interest of the first one and will give you the start.
What I have learnt from my courses in entrepreneurship is that if you father is TATA then think BIG, do BIG and don’t worry of failure, if not, start small but make it sustainable.
My 2.2 cents
-