The keys to biotech success: people and relationships

By Henrijette Richter, Managing Partner, Sofinnova Partners

When asked what makes a biotech start-up successful, I always emphasize the importance of people and relationships.

For a pre-seed biotech start-up to get off the ground, it needs the right people from the start. Ideally, this includes advisors with hands-on company-building experience and complimentary networks. Good people attract other good people, and experienced hands help to make better decisions. If an experienced company-builder has faced failure in the past, that’s a positive — learning from setbacks is just as valuable as learning from successes.

Make Full Use Of Every Network You Can Access

Every person a biotech start-up brings in, from advisors to venture capitalists, has a network. Biotech entrepreneurs must consider this "network of networks” as one of the most valuable tools in their toolbox. They should leverage this network each time a critical decision needs to be made. A well-maintained and ever-expanding network provides a wealth of valuable insights, powerful anecdotes based on real experiences, and a pool of potential partners or team members. As entrepreneurs start talking to VCs, they should try to get an idea of how valuable their networks might be. Older, well-established firms tend to have the most useful networks. Look at a firm’s previous investments for clues.

Keep An Open Mind

My partners and I are often asked: What kinds of people do you support?

We are backing exceptional people who want to make a difference. However, entrepreneurship is not a solo endeavor, it is a collaborative process. Being able to listen and accept feedback is important. We want to work with people who can see that getting from A to B is always going to be a collective effort.

If someone approaches us with the attitude of “please just provide the funds and I'll handle the rest my way,” we’re unlikely to invest in them. Venture capital is a long-term partnership, and it should be a collaborative effort all along the way.

Mapping The Journey

Once an entrepreneur has a group of experienced team members, it’s time to address key early questions: Will this idea lead to something that will significantly help patients? What do we need to bring it to fruition? What will the key challenges be in terms of discovery, financing, and advancing the science to the point where a potential buyer would be interested enough to step in and take it through to Phase III and registration?

Crucial Requirements

Even the most talented, well-financed entrepreneurs require two crucial elements in order to build a biotech: 1) a patient group that is not served well enough by existing medication; 2) original, patented intellectual property. Without these, there is no business, investors, or acquisition potential.

Read the full Life Science Leader article.