Ready, Set, Go: Getting Your Life Science Startup "Started Up"

Amir Toren

The Israeli life science incubators and accelerators are attracting increasing attention and investors in recent years. Hand in hand, there is a constant improvement in the Israeli incubator program.

Perhaps you’re a scientist, a physician, or an engineer who’s developed a new technology, or perhaps you’re an executive at a life science company and would like to venture out on your own.

Generally speaking, life science is a high risk, high reward business.

Unfortunately, it’s not possible to develop a new drug, biologic, or medical device prototype, market it immediately to the public, and then make small adjustments along the way based on how they’re received. That would be very risky, not to mention unethical and potentially illegal! To get a drug or medical device to market, a series of incrementally bigger and more expensive trials have to be designed, approved, and conducted. All of these trials have to be funded, yet none of them will generate a positive cash flow for the business. That is why it costs between $25 million to $100 million to develop medical diagnostics and devices, and up to $1 billion to develop drugs, before companies can start making money of them.

If you are thinking of starting a successful life science company then you must build your company wisely and immediately deal with the following five topics: IP, Regulatory, Technology, Team and Market.

Through examples of early stage companies, I will provide insights into how health care startups should be structured.

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