industry spotlight

Biotech

Tap into the biotech industry—where innovative gene solutions blend with AI to revolutionize healthcare.

Biotech industry overview

With AI pervading biotech and gene therapies advancing, the industry’s future looks bright. AI is expected to yield a 3-5% increase in sales. The UAE and the US target pharma hub status by leveraging AI to enhance automation and scalability. Despite the biotech market’s high volatility, it continues to attract significant venture capital investment, with projections exceeding $26 billion by 2027.

Why it matters:

Given the promising future, biotech startups have numerous options to disrupt the market:

  • Advancing personalized medicine
  • Utilizing AI for drug discovery
  • Creating digital health technologies
  • Expanding into immunotherapy and cell therapy

Between the lines:

Founders should be aware of potential risks such as stiff regulations, fierce competition, and fundraising issues.

We’ve worked with numerous biotech startups, so our team knows what it takes to build a successful and investor-attractive business in this sector

$3B+
Secured in funds
600+
Ventures advanced
80+
Industries explored

What we do:

We’re a one-stop shop for fundraising assistance, outsourced M&A advisory, business growth consultancy, and impeccable pitch deck design.

Go deeper:

Check out our biotechnology market research to discover industry trends, potential startup risks, and crucial tips on getting funding for biotech startups.

3x growth
The biotech market is projected to triple in size by 2032.

 

5%
AI integration is expected to raise sales productivity by 3–5%.

Driven by genomics advancements, demand for personalized medicine, and AI rise
7/10

Individuals are interested in personalized medicine approaches.

$100

Is the 2023 record low cost for sequencing a human genome.

80%

AI algorithms have achieved an 80% success rate in identifying drug targets.

VENTURE LANDSCAPE

In 2022, biotech startups secured over $22.2B in funding

With the focus on such verticals:

  • Genomics and gene editing
  • Oncology
  • Neuroscience
  • Digital health and AI

Top biotech VC firms

Write to us to know more

Biotech startup challenges

Tackling the following issues will help founders forge ahead in the biotech sector.

High R&D costs:

Developing a solution in the biotech sector will cost you an arm and a leg. Just consider extensive research, highly skilled personnel, and expensive lab equipment. It already sounds money-consuming. Now, add the cost of clinical trials, and it becomes prohibitively expensive.

Why it matters

High R&D costs can:

  • Limit a startup’s ability to conduct thorough research
  • Make investors hesitant to back such ventures
  • Prolong the runway to profitability

What it takes:

  • Target niche markets: it will narrow your R&D scope and speed up the development process
  • Build strategic partnerships with research institutions, big pharma companies or universities to leverage their resources and expertise

Stringent regulations:

Patient safety, data analysis, and extensive clinical trials are the top priority for regulatory bodies like the FDA. When developing new drugs, devices, and therapies, we’re speaking about human lives; that’s why regulations just can’t be lenient.

Why it matters

Strict regulations:

  • Delay market entry
  • Increase financial burden

What it takes:

  • Engage with regulators beforehand: it will help avoid last-minute revisions or delays
  • Build a solid regulatory team: it will facilitate the approval process
  • Leverage digital tools and data analytics to streamline clinical trials and data submission processes

Intense competition:

The biotech sector is flooded with numerous players—top pharma companies, research institutions, and startups. And all of them operate in overlapping segments, fighting for funding, market share, and breakthroughs.

Why it matters:

The more competitive the market, the more challenging it is to:

  • Generate revenue
  • Stand out
  • Achieve profitability

What it takes:

  • Build a strong competitive moat to differentiate your offer and solidify your market positioning
  • Craft effective marketing strategies to clearly communicate your value proposition to your audience and healthcare providers
  • Collaborate with complementary companies to combine strengths, co-develop solutions, and expand reach

Funding race:

The high-risk, long-term nature of the industry makes biotech VCs cautious about pouring big bucks into startups.

Why it matters:

Lack of funding:

  • Delay R&D
  • Constrain operations
  • Impede compliance with regulations
  • Weaken competitive advantage
  • Limit scalability

What it takes:

  • Demonstrate a clear path to profitability: a business plan with realistic financial forecasts that outlines a path to revenue generation and ROI for VCs
  • Build a strong management team with proven expertise to inspire investor confidence
  • De-risk your value proposition: present strategies to mitigate risks associated with R&D, clinical trials, and regulations
  • Create an effective outreach strategy and an investor-appealing deck

FAQs

What is the difference between the biotech and pharma industries?

The biotech industry develops drugs using innovative biological processes and techniques, while the pharma industry manufactures and markets them.

How attractive is the industry to potential biotech VCs?

Despite the current market doom and gloom, the biotech industry is highly attractive to VCs. In 2022, investors poured $22.2 billion into biotech startups.

If you are a biotech startup, how easy is it to raise funding today?

Biotech is a capital-intensive and competitive landscape, so fundraising isn’t an easy feat. However, with a smart approach and appropriate documents it becomes much easier. Consider a robust business plan, financial model, and persuasive pitch deck at first.

How long does it take to create a pitch deck and financial model for a biotech startup?

Our team usually finalizes all necessary documents within 2-3 weeks, though some cases may require up to a month. Further details can be provided upon request.

What are the key mistakes biotech startups make in their pitch decks?

The main problem is the absence of an investment story that connects all the elements. Showing only graphs, numbers, and charts isn’t the best way to secure funding. Investors will feel bored and skip to a more appealing project that has a persuasive narrative, a solid competitive moat, significant traction, a solid business plan, and a unique value proposition.

How competitive is the biotech market?

It’s a highly competitive market with lots of top pharma companies, research institutions, and startups.

What services do you provide for investors looking to invest or already investing in biotech?

We help investors identify promising opportunities through thorough due diligence. Additionally, we support our partner fund’s portfolio companies in their fundraising efforts.

Do you provide biotech M&A support?

Sure thing! We guide M&A in the biotech industry and beyond, from finding deals to due diligence and post-deal collaboration.

Do you make intros to biotech VCs?

We connect you with relevant biotech VCs, evaluate the funding round size, team, and product, and support your collaboration with investors from start to long-term partnerships.

Do you have available data or research to purchase on the biotech market?

Our experts deliver insights on the biotech market, including industry analysis, competition assessments, and market overviews. Utilizing trusted data, we help you identify biotech opportunities, challenges, and investment trends.

Which growth stage of companies have you worked with in the past?

We guide startups from Pre-Seed to Series C+, facilitating interactions with major investors and funds.

Diverse industries we work with

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Building a solution in the biotech industry? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let’s chat!

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