Bio-boom: academic trends fuel funding for biotech startups

According to a report by Startup Genome, only one out of ten entrepreneurs succeeds. Why do some entrepreneurs succeed while so many others fail? One major reason for failure is insufficient external funding. Entrepreneurs’ internal funding from personal sources, including families and friends, is often not enough to sustain the growth of their businesses. Therefore, entrepreneurs are usually in need of funding from external investors. In the context of biotech startups, investors typically have access to significantly less information than entrepreneurs, deterring them from pursuing investments due to the high risks and uncertainties associated with the startups. Increased uncertainties and risks are a consequence of biotech entrepreneurs’ reluctance to share discoveries’ details, due to the fear of others stealing their unique ideas and knowledge. This is further compounded by the extensive, uncertain timeline for product development, which, in some cases, may culminate in no product at all.

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Recommended citation: Esposito, C. D. (2024). Bio-boom: academic trends fuel funding for biotech startups Babson 2024. https://www.babson.edu/media/babson/assets/bcerc-dc-translations/Esposito-Ciro-Translation.pdf