Question for founders: How much money did you put into your company before you felt you had something “investable”?
I asked this question to some biotech founders.(Updated)
- Celine Halioua (Loyal) said $500K.
- Daniel Ives (Shift Bioscience) said he put in around $70K.
- Nabiha Saklayen (Cellino) - co-founder used $10k - $20k to buy hardware for first prototype.
- Jack O’Meara (Ochre Bio) - Entrepreneur First program paid a stipend and invested 80k GBP. Went through Y Combinator to get another $150k,
- Kristen Fortney of BioAge Labs said she put in $5k- 10k. (Bioinformatics approach)
- Matt Scholz said typical startup cost could be $1M but cheaper if you are creative. (leverage academic labs with spare capacity)
Does anybody have any other figures they can cite?
I am interested in finding ways to reduce the activation cost of biotech startups. Andrew Brack mentioned that his startup developed a technology (probably part of their drug discovery platform) and charged money for it. Roche is one of their customers now.
Not quite bootstrapping: Crowdfunding seems like a viable option to raise some initial capital. The SEC has raised the cap to $5M per year. The only problem is there are not a lot of premium crowdfunding platforms for biotech startups. A lot of the companies raising on WeFunder and Republic.co tend to look like Kickstarter projects. There’s definitely a business opportunity here.