The lifeblood of a young biotech company is cash.
Without capital, the greatest of ideas get nowhere. The biotech entrepreneur must successfully identify and access consistent sources of capital over the life of their organization in order to transform their ideas in to products. During early development stages the entrepreneur should make use of Angel capital and Small Business Innovative Research (SBIR) and other federal (NIH) and state grants. But at some point this budding company will need to secure venture capital or what is known as Institutional Funds. How does one go about doing this?
Kleiner, Perkins, Caufield & Byers (KPCB) is one of the stalwart biotech venture capital groups and one of the early backers of Genentech in 1977. Since then, the firm and its Partners have backed entrepreneurs in over 100 life science companies working in every area of medicine, including cardiology, cancer, neurology, immune system diseases, ophthalmology, and molecular diagnostics.
Stanford University’s Entrepreneurship Corner interviewed Brook Byers, an early partner in the firm discusses the best way an entrepreneur should find and reach venture capitalists.
In this second video clip he shares his thoughts on selecting and working with venture capital firms.
The TakeAway Tidbit:
Entrepreneurs must anticipate the need to find venture capital early and begin communicating with these firms even if they don’t need their capital immediately. Relationships take time to build. Finding the right financial partner will not only bring financial strength to your business but also the expertise in assisting you to strategically grow and build your business.
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