What are the roadblocks to successful startups? And how do you overcome them? Two recent articles from the Financial Times and Nature)
From the FT’s Unvercover Economist, Tim Harford::
Oswald and Blanchflower originally intended to study the psychological make-up of entrepreneurs. That work went nowhere, because it seems that there is nothing distinctive about the psychological make-up of entrepreneurs.
What matters instead is capital. In surveys, would-be entrepreneurs identify lack of finance as the key obstacle. And in a clever piece of analysis, Oswald and Blanchflower compared people who had recently received a substantial bequest with those who had not. They found that such bequests – essentially twists of fate – were good predictors of whether people became entrepreneurs. They were especially influential on the decisions of people to become entrepreneurs early in life, presumably because older people have other ways to acquire funding.
And from Nature: Beyond venture capital: Bioentrepreneur.
Beyond venture capital: John Hollway
You don’t always have to go to venture capitalists to raise funds. Proper planning and research can help you bring in millions through other avenues.
One of the fundamental challenges in running a biotech business is the temporal alignment of two initiatives—scientific advancement and fundraising—that have no natural affinity for one another. Sometimes companies are lucky enough to raise money on the back of a scientific accomplishment, which is when it’s easiest, but raising money is a constant hurdle, especially for young biotechs; there is no guarantee that the next scientific accomplishment will occur within your new financing window (or at all).