Mark Ahn: Thoughts on Biotech Startups
In PR Newswire’s article “Mark Ahn Explains Why Some Biotech Startups Succeed, While Others Wither” we get a few tips on what differentiates a successful and unsuccessful biotech start up, and how to profit from investing in this industry. Mark Ahn has more than 20 years of professional experience in the biopharmaceutical industry.
According to Ahn, successful biotech startups have several rounds of funding from outside investors. This is necessary due to the long development cycles of a drug. Multiple rounds of funding is needed to ensure the development meets the regulation standards of the industry. The biotech startup cannot generate any revenue until after the product is approved for market sale, so its success depends on its investors.
In light of this, Ahn recommends investors acquire stakes in multiple startups rather than investing in one single biotech company. The startup’s resilience and successes will be proven over time. Investing in multiple companies and avoiding trends reduces the risk that your investment will go to waste. In other words, don’t put all your eggs in one basket.