BioTech Plain and Simple
IndieBio SF is preparing to bring in our fourth cohort which should include our 57th company next month. We fund larger and more frequent classes which works to create momentum, interest and stronger networks for our companies.
That model recently made SOSV the largest portfolio of BioTech companies (by number of companies) in Venture Capital.
Having seen hundreds of startups that have applied and scores more established companies that have generously visited us to mentor, I wanted to write about one way of looking at a BioTech startup plan — Simple BioTech.
Simple Plans Are Better Plans
In Biotech advances are often feats of technical virtuosity. AntiCancer vaccines, next-generation sequencing with nanopores or electrical current, digital PCR and microarrays are all examples of multi-billion dollar innovations that have changed the course of biology and influenced thinking in personal healthcare and national health plans.
IndieBio has funded companies who have worked for two years on their technology as well as companies who have nothing more than a clearly written and expert plan. Its impressive to see the guts of a team that has worked for a couple of years on their own. It says a lot of good things about the team and the determination and talent of the team is vital.
Still, all other things being equal, simple plans beat complex ones.
Qidni Labs had built a functioning prototype that was so straightforward. Compared to other portable kidney solutions, the Qidni is so robust that it can continue to work even if controlling electronics power down. A huge advantage for a life sustaining technology like theirs.
Some entrepreneurs will pitch their work as more complicated/sophisticated than it really needs to be. Maybe they think it attracts investors to come to a more complex problem, the team looks ‘smarter’ etc etc. Really nothing could be further from the truth. The more difficult the execution plan the more risky the path ahead is.
I often find myself mentioning that IndieBio has funded ‘paper only plans’ — companies who have not even done a single experiment. That is not to say that teams that have done feasibility or built prototypes are not welcome. Clearly that is a better investment and most of the companies have done up to a couple of years work before we fund them. But in the case where plans are so clear, so simple and the team so clearly ready to execute them that we have to say yes. Those companies do well and have great velocity.They are rare but they stick out when they are well planned and the team has focused and understand exactly what they want to do.
Making biotech plain and simple is what investors and customers want — even the most difficult ideas can be communicated in the pitch to everyone. For most teams its as much a matter of attitude as it is the technology. Practice being clear and simple and the impact of your company will be the strongest it can be.
