Dr. Mark Ahn recently spoke to The Street about how biotech startups might fail if they are not careful. He has done a great deal of work on these principles, and he works with his own company that was once a startup of its own.
Dr. Ahn believes that most startups are not planning for long term success. He knows that these people want to make money, but he also knows that they can miss the mark if they are too concerned with making money.
The product cycles for these companies are often so long that the staff can turn over quite a bit in between projects. When the company is scheduling funding to handle each part of the process, they will also have money to keep the company going or start other projects.
These companies often fail because their management wants to make a buck today. They need to plan to get the funding for a project that could sustain them for years to come, and they will end up being profitable for all those years due to the funding that they find. Making the quick money is not the answer, and the right startup owners will plan for the next few decades of success and not the next few months.
Source: The Street