Biotech startup life cycle (proteus 2008)
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Transcript of Biotech startup life cycle (proteus 2008)
Biotech Start Up Life Cycle
CONFIDENTIAL 1
Founders
• Technical Founders• Universities/Academia• Large Pharma
Growth Investors
• Venture Institutions• Corporate VCs• Hedge Funds
Large Pharma
Public Investors
• Mutual Funds• Hedge Funds
Venture Investors
• Venture Institutions• Corporate VCs
Seed Investors
• Family & Friends• Angel Investors• Government Grants
Biotech Start Up Maturing Biotech
Independent Public Biotech
Acquired
$ Acquisition
Intellectual Property
Start Up Capital
Growth Capital
CapitalExpertiseContacts
Public Capital
Valuation/Dilution Cascade
CONFIDENTIAL 2
FounderIP/Idea
Value = $1 Million
Seed InvestorsSeed Capital
$2 Million
Start UpValue = $3 Million
Founder: 33%Seed Investors: 67%
Start UpValue = $9 Million
Founder: 33%Seed Investors: 67%
Venture InvestorsSeries A Capital
$15 Million
Start Up
Value = $24 MillionFounder: 13%
Seed Investors: 25%Venture Investors:
62%
Founders Stake has been diluted 100% to 13% in two roundsBUT Value has increased $1 Million to >$3 Million
Capital spent to advance drug candidates
+
+
Assets and Needs of Biotech Companies by Stage
Concept/Gestation
Infancy Adolescence Maturity
• Idea
• Some relevant technical/management expertise
• Company founded
• Idea advancing
• Clear development/ implementation plan
• Seed capital in place
• Growing company
• Idea/intellectual property progressing
• Clinical data
• Supportive VC investor base
• POC data
• Growing pipeline
• Lead candidates in Phase 2/3
• Corporate organization with strong management
• Capital
• Structure
• Management
• Capital to fund advancing programs
• Governance
• Entrepreneurial expertise
• Contacts
• Structure
• Capital to fund later stage/larger trials
• Proof of concept data
• Additional expertise
• Even more capital
• Liquidity for founders and VC investors
CONFIDENTIAL 3
Ass
ets
Nee
ds