#AseBioID24 | "These ecosystem events are the best way to develop relationships with investors or partners"

On May 15th, the city of San Sebastián (Donostia) will become the epicenter of biotechnological innovation with the AseBio Investor Day, a meeting point between prominent national and international investors and biotechnology companies.

Throughout the following lines, we analyze the challenges and opportunities of the biotechnology sector in areas such as financing and driving its disruptive innovations, led by Antonio López, CEO de SILO, Silver Sponsor of the AseBio Investor Day. SILO is a firm with over 11 years of experience in managing entrepreneurship and innovation projects in both the public and private sectors, and a reference in consultancy in the life sciences sector.

AseBio: SILO's mission is to conceptualize, design, implement, and collaborate in driving innovative projects in the field of biotechnology. Based on your experience, what is the picture you observe in the biotechnology sector in terms of innovation?

Antonio López: After some difficult years globally in terms of corporate operations and fundraising, the biotechnology sector is accelerating. In Spain, some really novel models and approaches are emerging that are attracting increasing attention from international actors. In this sense, as part of our specialized acceleration program (www.SiloAceleraBio.com), we wanted to give voice to some of the protagonists involved in such operations, to share their experiences and investment theses with the participating startups.

AseBio: Most biotechnology companies are small and micro-enterprises that do not have products on the market and therefore do not generate the resources to finance their activities. Consequently, access to external financing is crucial. What are the main challenges that biotechnology companies face when it comes to obtaining funding?

Antonio López: One of the most repeated phrases is that, in many cases, the problem lies in the fact that the protagonists "don't know what they don't know." And in the world of financing and investment, access to that information is crucial because these types of companies generally "feed" on public aid in the form of R&D&I projects or capital increases. Knowing where and when to access these sources, and under what conditions, is key.

The other fundamental aspect is to structure the information properly, that is, to be able to present the best face of the company to third parties. Understanding investment or financing criteria and adapting the information to the recipient is essential, and sometimes not doing it well can mean missed opportunities. We like to say that we should work "from the demand" – oriented towards customers and investors – rather than "from the supply" – oriented towards what we know how to do. This effect is more relevant in early stages, where the scientific approach can overshadow the business one.

AseBio: What sources of funding are available for biotechnology companies in early stages? What should be improved in Spain in this regard?

Antonio López: Although there are areas for improvement – ASEBIO is working hard to improve access and to flexibilize the conditions of aid – we can say that there is a generally favorable framework of aid for R&D&I activities, which is particularly attractive in some territories.

The multiplicity of channels and programs makes it complex for entrepreneurs in early stages, ranging from non-refundable grants to public financing sources such as ENISA and CDTIs, through more philanthropic instruments, and of course, venture capital funds. All of them with their particularities.

And as we get closer to the "domain" of investment, we believe it is more practical to think of this point as a relationship between the startup and the investor. It's in how to approach that relationship, which has two parts, where the focus should be placed. Three points have been highlighted by investors in our acceleration program consistently:

1. An investor should be approached 80% of the time for advice and 20% of the time for funding. 
2. Don't wait until the need for funding is urgent to approach investors because it will be too late. It's crucial that entrepreneurs understand investors' mindset and the map of investors they could contact. This would greatly help them have a more natural and progressive approach.
3. Finally, it is necessary to adjust the depth of the materials shared by the entrepreneur with investors and the scientific depth of the shared discourse. Depending on the depth of the contact made, the materials and the interlocutors change.

AseBio: What is the importance of venture capital in the biotechnology industry?

Antonio López: Considering how companies are financed, venture capital is crucial for the sector's development. It accelerates the time-to-market of projects and adds value in various key areas (business model, regulatory, market access, business development, fundraising, IP, etc.). Public venture capital can also play a significant role, helping to structure projects in a region, facilitating specialized investments, or even acting as an investor in other specialized funds to mature the sector.

AseBio: The AseBio Investor Day stands as one of the most important meeting points between investors and biotechnology companies, united by innovation. What opportunities does an event of this kind offer?

Antonio López: These ecosystem events are the best way to develop relationships with investors or partners (depending on the type of event). Having access to and hearing directly from investment profiles and meeting them in person is crucial for fundraising processes. If there's something that characterizes this sector, it's the "community effect" that is generated, resulting in quality networking and a lot of proactivity towards collaboration.

AseBio: What do you expect from participating in an event of this nature?

Antonio López: Connections and quality time. Learning from others and seeking inspiration. And on a more social level, it's the perfect environment to reconnect with collaborators, partners, and friends. And on top of that, in San Sebastián, what else?