What Every Biotech Startup Needs to Succeed

Biotech startups are fueling the future of global healthcare, industry and agriculture. Through innovation, artificial intelligence, and scientific breakthroughs, biotech startups are developing the technology to solve complex challenges. And investors are taking notice. In 2024, venture capital funding in biopharma companies alone reached 6 billion.

The biotech startups that succeed rely on much more than just a great idea. Breaking through in this competitive market takes a combination of technology, vision, values, culture, and teamwork.

The World’s Future Businesses, Reviewed by Our Experts

At VivaTech, we’ve spent years analyzing and supporting groundbreaking startups across various industries, including biotechnology. With a deep understanding of the startup ecosystem, our expert team has identified key trends and success factors that can make or break a biotech startup. 

In this guide, we’ll explore the must-have features every biotech startup should have and provide expert advice for anyone looking to launch their own company in this fast-growing sector.

Features of Every Successful Biotech Startup

Starting a biotech company requires scientific expertise of course, but also strategic business planning, and innovative thinking. While every startup’s journey is unique, there are fundamental features that all successful biotech startups share.

Common Leadership Features

1. Strong Scientific and Business Leadership: A biotech startup needs a balanced leadership team made up of both scientific experts and business minds. CEOs should ideally have experience and skills that allow them to bridge the gap between research and commercialization. This is the case with the co-founders of bio-based chemical manufacturing startup Solugen. Gaurab Chakrabarti (co-founder and CEO) is an MD/PhD who leads the scientific innovations behind Solugen’s enzyme-based chemical production, while Sean Hunt (co-founder and CTO) has a PhD in chemical engineering and has scaled Solugen into a multi-million-dollar business, securing major partnerships and funding from venture capital firms.

2. A Clear Vision and Mission: Successful biotech startups have a compelling mission statement that outlines their goals, the positive difference their companies will make, and the real-world impact their product will have on the world. Clearly defining the problem your startup aims to solve is essential for securing funding and partnerships. Take a look at the mission statement of AI-powered plant-based food startup NotCo: “We’re here to make plant-based options accessible to everyone, everywhere. Changing the everyday - one delicious, affordable mouthful at a time.” NotCo’s vision is innovative, consumer-focused, and clearly conveys how the startup aims to disrupt the food industry while promoting sustainability.

3. Strong Network and Partnerships: Collaborations with universities, pharmaceutical companies, and research institutions can provide biotech startups with necessary resources and credibility. Many top-tier biotech startups including Solugen, Gingko Bioworks and Asher Bio have also leveraged incubators and accelerators such as Y Combinator to gain traction.

Tech and Software Choices

1. AI and Machine Learning Integration: Artificial intelligence is revolutionizing the startup world and biotech is no exception. Advanced biotech companies are leveraging AI to accelerate drug discovery, optimize genetic sequencing, improve predictive analytics, and more.  For example, AI drug discovery startup Exscientia uses AI to design new drugs faster and more efficiently, and was the first company to have an AI-designed drug enter clinical trials. And NotCo’s AI program, dubbed “Giuseppe,” helps the startup predict which combinations of plant-based ingredients can be used to recreate animal-based foods.

2. Data Management Systems: Biotech startups generate vast amounts of data, requiring scalable data storage and analysis tools. Scientific data management systems (SDMS) optimize data storage, workflows, collaboration and compliance. The emergence of cloud-based solutions and AI-driven analytics platforms has also helped streamline R&D processes.

3. Lab Management Software: Biotech startups should invest in Electronic Lab Notebooks (ELN) and Laboratory Information Management Systems (LIMS), ideally from the very beginning. These tools make documentation and compliance tracking easier and more efficient.

Strategies and Brand Positioning

1. Compelling Storytelling and Branding: Investors and consumers need to understand the science, but also the impact of your innovation. Successful biotech startups use storytelling and smart branding to make their technology feel personal, frame the company as a scientific pioneer, or connect emotionally. For example, Orna Therapeutics has a clean, modern aesthetic, and leans into scientific credibility and breakthrough innovation with the tagline “A Revolution in RNA Therapeutics.” This branding strategy can be very appealing to investors and partners. Consumer-facing biotech startups like the plant-based pet food company Wild Earth need to draw on emotional storytelling and clever branding to connect with customers. In Wild Earth’s case, slogans such as “Killer Pet Food Without the Killing” appeal to pet-owners searching for sustainable and cruelty-free food options.

2. Patent and Intellectual Property Strategy: Filing patents early ensures that your biotech startup retains ownership of its core innovations and can help secure dominance in a field and attract investors.  Biotechnology company Moderna began filing patents on its mRNA technology in 2010, the same year it was founded as a startup. This was long before the COVID-19 vaccine made mRNA mainstream, and these patents gave Moderna a monopoly on key aspects of mRNA drug delivery.

3. Go-to-Market Strategy: Understanding market demand and regulatory pathways is key for successful biotech product launches. A biotech go-to-market strategy requires a clear understanding of your target audience, identifying the unique selling points of your product, and aligning your value proposition with the needs and trends of the industry.  Many biotech startups also enter into partnerships with established pharmaceutical firms to help scale their production and distribution.

More Advice for Founding a Biotech Startup

Here are even more expert tips to help navigate the challenges and increase your biotech startup’s chances of success:

1. Start with a Strong Scientific Foundation: Ensure your technology is built on solid, peer-reviewed research. Be sure to validate your findings with independent studies before approaching investors.

2. Find the Right Team: A diverse founding team increases the chances your biotech startup will succeed. You’ll need to include biologists, chemists, engineers, and business experts.

3. Understand the Regulatory Landscape Early: Early knowledge of the approval processes of the FDA and other regulatory bodies is crucial to prevent costly mistakes. Consider hiring regulatory consultants to help navigate approvals and clinical trial design.

4. Develop Solid Funding and Financial Plans: You’ll need to secure enough capital for research and trials. Try to leverage non-dilutive funding opportunities as well by applying for government grants, research fellowships, and accelerator programs. A solid financial plan should also account for long R&D cycles and potential regulatory hurdles.

5. Build a Strong Advisory Board: Don’t try to go it alone. Experienced advisors can provide critical insights into fundraising, regulatory compliance, and business strategy. A well-connected advisory board can also open doors to key investors and partners.

6. Prioritize Talent Acquisition: Experienced founders know that “people are everything.” Hiring top-tier researchers, engineers, and business leaders is essential for growth. Offer equity incentives to attract and retain the best talent you can.

7. Focus on Milestones and Proof of Concept: Investors want to see tangible progress. Be sure to define key milestones such as prototype development, preclinical trials, and regulatory approvals. A clear timeline with measurable goals increases credibility.

8. Consider Partnerships for Scaling: Collaborating with established pharmaceutical companies or biotech firms can accelerate growth, while licensing agreements and joint ventures can help with production and distribution.

9. Develop a Long-Term Vision, But Stay Flexible: The biotech space is highly competitive and often unpredictable. Biotech startups can take years to bring a product to market, and in the meantime, market conditions and regulatory requirements can shift. Founders have to be prepared for setbacks while also staying focused on long-term goals.

If you’re a biotech founder looking for partners and investors, or you want to pitch your startup at Europe’s biggest startup and tech event, join us at this year’s VivaTech event.