The focus of the industry on living beings that are human and the strict regulations that it imposes are unique to business leaders. These features also make the industry a natural incubator for technological innovation, resulting in major breakthroughs which have improved yields in agriculture, produced biofuels, and even led to life-saving pharmaceutical products.

When it comes to strategies that generate revenue biotech start-ups have a myriad of options. The majority choose either a technology partnership or an asset creation and out-licensing strategy. Technology partnering generates faster revenue with lower financial risk while out-licensing index and asset creation strategy generates significantly more lucrative returns if it is successful. A growing number of biotechs in the research stage operate a hybrid model that combines both approaches.

If you choose to go with a product-oriented strategy are more likely to achieve commercial success when they are able to bring their pipelines up to the right place, and attract a large pharmaceutical partner or an investor with a large sum of money. This could be costly but balancing opportunistic approaches to leveraging outside assets with the right research-based decision making about homegrown projects is key.

Alternately, the «platform» model can provide an alternative way to earn revenue. It is less expensive than product-oriented research, but involves significant risk. In this model biotechs develop and own their platform technology before partnering with pharma companies to develop a portfolio of drug-discovery projects that target specific diseases (i.e. disease x in biology y). Advinus Therapeutics, among others have embraced this model.