Introduction
When looking for funding, it is important to highlight what sets your company, innovation, and management team apart from the rest. By doing so, you increase your chances of attracting investment.
So, you need to identify what are your unique set of skills, knowledge, and personality characteristics.
It is not an easy task as we are all different so I put together a guide of the most important traits that potential investors, be they business angels or venture capitalists, look for that convince them that you can achieve success.
1) Scientific knowledge & experience
This almost goes without saying, especially in the biotech and pharma industries, but worth a mention. It is important for you and your management team to have in-depth knowledge of a therapeutic area.
Chances are that your innovation is either a complex gene or cell therapy. Or your solution is made up of a drug that is used in conjunction with a medical device. So, you need to show investors that you understand scientific research and can interpret and explain clinical data.
You also need to be able to describe how your therapy works and how it impacts the disease you’re targeting.
2) Business acumen
Investors consider commercial expertise just as, if not, more important than scientific expertise. There is a good reason for this. Investors want to be confident that you can get your product to market, and can persuade your target audience to adopt your healthcare innovation.
In addition, investors expect you/your management team to demonstrate these business skills:
- the ability to make decisions in the face of ambiguity and incomplete information
- Have clear goals and objectives and be able to take calculated risks
- Be business- and patient-oriented, and have an entrepreneurial mindset
- Be able to write business plans, carry out and understand market analysis, present and have an excellent grasp of financial data, including profit and loss statements and balance sheets
- Knowledge of intellectual property rights and patents
- Ability to build a network of suppliers and partners
3) Market knowledge
This is very much related to the first 2 traits and again, almost goes without saying. You need to have a thorough understanding of the market for your therapy.
This is essential as you need to convince potential investors that you are aware of customer challenges, and the obstacles that your innovation faces when entering the market so that you know how to overcome them.
More specifically, you need:
- A detailed understanding of the therapy, market, and the unmet medical need
- Knowledge of the complexities within the healthcare system, including the interdependent relationships that exist between governments, industry, payers, healthcare organisations, doctors, and patient organisations
- Familiarity with the regulatory landscape, including FDA and EMA standards, complex regulatory pathways, and compliance with safety, efficacy, data security, and privacy standards
4) Charisma
Investors certainly look for charisma in you and your management team. They want to see leaders that are driven to succeed, no matter what the challenges are, and can motivate and inspire employees. This maximises your company’s chances for success.
So, you need to be able to:
- Communicate the company’s mission and story in an inspiring way
- Articulate the risks involved and build a spirit of adventure within the team
- Empower employees to take on responsibility and reach their full potential
- Encourage collaboration and knowledge sharing to create a rewarding and innovative culture
- Inspire others to make difficult decisions
5) Integrity
Honesty and integrity are required for all businesses in all industries. This is especially the case in the pharma and biotech industries where the development of complex therapies and medical devices require scientific rigor. Failure to do so can cause patients harm, or even result in death. Developing new treatments can sometimes also pose significant ethical questions and problems.
So, investors expect you and your management team to be truthful about the challenges and risks of the therapy or device, not just the positives.
6) Openness to new ideas
Investors want outsized returns so they look for ground-breaking therapies that disrupt the industry and help your company achieve high rates of growth.
Constantly coming up with new ideas is not easy, so investors want to see:
- Management teams that consist of individuals from diverse backgrounds and expertise who are willing to challenge the status quo, encourage constructive discussion, and vigorously test hypotheses
- You and your management team use a variety of methods to find new ideas, including identifying better ways to engage with others, encouraging employees to share ideas, improving listening and relationship-building skills, encouraging collaboration, and offering solutions to problems
7) Resilience
The biotech industry is very challenging where the majority of promising therapies fail at the discovery stage. The development process is also fraught with obstacles and complexities.
So, you need to show investors that you’re resilient and determined to find ways to solve problems and overcome challenges.
This can be achieved through your, and the management team’s ability to:
- Lift people through challenging times and offer ideas and solutions to overcome obstacles along the way
- Reflect on key successes and failures, and identify solutions that will help your company avoid making the same mistakes
- Never lose sight of vision and values despite challenges to keep the company on course
So, when looking for investment, and preparing for your pitch, think about these important traits and other characteristics you may have, and the many ways you can demonstrate them to venture capitalists, business angels, and other investors.