I spent over 100 hours researching and reflecting on 70+ interviews with biotech founders. Here are 7 principles these founders all agree on:
1. Fall in Love with the Problem, not your Technology.
Building in healthcare is not about how you can use your technology to help the patient. It’s about using whatever technology you have to use to solve the patient’s problem. To borrow from Steve Jobs, “start with the patient and work backwards for the technology”.
2. Focus on your Value Proposition
This applies to both investors and partners. “VCs won’t fund your cool scientific idea. VCs will fund you if they think you can turn your idea into a billion-dollar company.” — David Li, Founder and CEO at Meliora Therapeutics
“For biotech companies, it takes 5 to 7 years to get through the preclinical and regulatory work, if you are lucky. Why would an investor tie up their money with you when they could put it into an S&P 500 company and see those returns much more quickly?” — Jonathan Thon at Strm Bio
With Pharma, you have to be strategic too. Your solution has to align with their focus and solutions. You have to match their targeted shopping list.
“Talk to folks who’d be the users: Let’s assume I can solve this. Does that make you excited? Would you pay for it? What else would you need to know before you can use this solution?” — Eric Kelsic, CEO at Dyno Thereapeutics
3. Talk to Investors and Partners Today
Don’t wait until you have the perfect deck, data, or results in your hands. Talk to investors, partners, and Pharma today. Develop those relationships early.
“Building in biotech is a relationship game. People do deals with people who they like, who they respect, who they want to work with.” — Becky Pferdehirt, investor at a16z
4. You Must Give Information to Partners.
Early-stage biotechs are too worried about IP protection and their ideas being stolen. But how can you expect your partner to trust you if you’re not willing to give information?
When you give information:
• you learn faster
• you pressure test your assumptions
• you build credibility
• you strengthen the relationship with all those you’ll team up with to get to the patient
5. Be humble (both as a leader and as a company)
Building in biotech is 100% interdisciplinary team effort within the scope of the company and a fully collaborative effort outside the scope of the company with investors, partners, Pharma, etc.
“Humility is an under-appreciated skill in founders. I know the area where my edge is. In all other areas, there are smarter people who better understand the details of our processes.” — Nicolas Tilmans, Founder and CEO at Anagenex
“Listen to your team. They are the ones closest to the problem and the ones with the right insights.” — Ramji Srinivasan, CEO at Teiko Bio
I’ll never forget what a Sr. Director at a big pharma company said to me: “I appreciate the founders who can be honest and open about the limitations of their technology. No one’s solution is perfect including ours.”
6. Get the Right People on the Bus.
Building in biotech is a long and bumpy ride. Don’t whitewash the risks when hiring. Tell your first hires that it’s going to be hard but if you succeed you’ll save lives and redefine human health.
“Make sure that your people are really bought into your vision and the idea because it’s going to be a long-term effort. They must be really excited and jazzed about the idea and willing to go through the hard work and the ups and downs.” — Tim Lu, CEO at Senti Biosciences
7. Become a storyteller.
Can you tell us your vision without talking about the science? Why does it matter? What is your impact on the patient and human health?
“You have to tell your story with sincere passion and excitement and communicate complex scientific concepts in a simplified and compelling manner adjustable to your listeners.” — Diego Rey, Co-founder and CSO at Endpoint Health
“Don’t assume too much knowledge on the part of investors. Say, I know our approach is somewhat complex are there any holes for you in what we covered?” — Sara Nayeem, Investor at Avoro Ventures