Each year OTT helps launch high-quality start-up companies based on discoveries made by Emory faculty or staff. Over the past few months, OTT set out to interview a selection of the entrepreneurs and VCs we have worked with and pick their brains about what it takes to make a successful startup venture.
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To visit Part 1: here
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To visit Part 2: here
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To visit Part 3: here
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To visit Part 4: here
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To visit Part 5: here
What do you see as the biggest changes over the past decade for start-ups?
Stephen Snowdy (CEO; Venture Advisory Board Member at Emory University): The biggest change over the past decade is the dramatic decline in funding that is available for early-stage startups. The traditional way to fund innovation was that the government subsidized research and discovery through grants, venture capitalists invested in further risk reduction at the startup level, and ultimately passed the risk off to either the public markets or to large corporations. Government funding for research and funding available for venture capital have dropped to levels not seen in decades. In addition, on a macro-level, the traditional venture capital model has not been a successful financial model, so it is unlikely to recover in the near term, and will likely emerge to look very differently. These changes force startups to operate differently from before, namely, many more are operating in virtual mode, and they are raising their capital from different sources, such as family offices, wealthy individuals, and to a lesser extent, large companies.
What is the biggest challenge facing start-ups in biotech, pharma, or medtech today?
Tom Callaway (Life Science Partner Founder, President):
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Finding experienced management
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Overcoming regulatory hurdles
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Lack of reimbursement planning/understanding
How did the global financial crisis impact the company?
Michael Lee (Chairman & CEO of the Emory start-up Syntermed): Overall reduced access to working capital on the part of our clients and partners [results] in reduced investment in expansion and growth with overall financial uncertainty. Having said this, healthcare was impacted less than other industries.