“Investors will always back a great team with an ok idea over an ok team with a great idea.”
Although the barriers to entry are falling, life science R&D is still an expensive and time-consuming endeavour. The gap between initial funding for a new venture and the point where a business is able to generate sustainable revenues is nicknamed the ‘valley of death’ by investors. It’s where most companies fail and explains why VCs demand such aggressive terms for their money: the few companies that make it through have to pay for all those that don’t. Helping new ventures cross this valley of death is a major part of what I do.
You need to keep a keen eye on the burn rate, you need to have confidence in your team and you need a lot of determination to see it through. That said, there are grants and other sources of funding available that can help get you to the other side, if you know what to look for and where.
It also helps to have people around who have been there before: people who can help prepare you for the journey and who can help you navigate around the common hazards. From personal experience, people who are comfortable in the territory make for better company on the journey…