#BIOSPAIN2023Interview | This is how Acelera Startups Sectorial Biotech works, the proposal by SILO and AseBio to boost emerging companies

The Ministry of Industry, Commerce, and Tourism, in collaboration with the EOI Foundation, has launched the "Acelera Startups Sectorial Biotech Program" to address one of the specific challenges outlined in the Recovery, Transformation, and Resilience Plan focused on entrepreneurship, growth, innovation, and the internationalization of SMEs.

In this context, AseBio and SILO, a firm with over 11 years of experience in managing entrepreneurship and innovation projects in both the public and private sectors and a leading advisor in the life sciences sector, have signed a collaboration agreement to promote the growth of startups in the biotech sector.

The growth and development of biotechnology companies, mostly SMEs and micro-SMEs, are two of the major challenges identified in Spain's biotechnology industrial fabric. The importance of funding and investment in these companies as a driving force for Spain and Europe's strategic autonomy will be one of the central themes of BIOSPAIN 2023, an international benchmark event for the biotechnology sector. To delve deeper into all the details of the "Acelera Startups Sectorial Biotech Program," we interviewed Antonio López, CEO of SILO, a Bronze Sponsor of BIOSPAIN.

AseBio: What is the current outlook for biotech startups in Spain?

Antonio López. We start with three references: In 2021, R&D investment had already recovered pre-pandemic levels, with a significant contribution from companies using biotechnology as a tool. We are confident that the impact of public investments linked to the Recovery Plan will continue on this upward trajectory until 2026. However, it is important that this impact is transferred to the private sector through programs, strategic projects, and funds. On the other hand, the total volume of venture capital funds specialized in biotech has multiplied by more than 20 over the last decade. Moreover, they have done so through operations with leading international funds and corporations. Finally, as the latest Asebio Report shows, an average of 48 companies per year has been created in this sector over the last decade.

I believe that the overall picture provided by these data is one of a more dynamic, robust, and mature ecosystem. That said, there are still many sector-specific challenges, and there seems to be a trend toward sector consolidation.

AseBio: What are the main barriers they encounter when it comes to growth?

Antonio López. It is a highly capital-intensive sector that requires long maturation periods, which makes the need to understand investors' dynamics, investment theses, and their rules of the game much more relevant than in other sectors. The need to align and bridge cutting-edge science and business is highly significant, and this relationship is not always straightforward or as intense as desired. Therefore, it is crucial to determine the appropriate regulatory pathways to qualify for new rounds of financing. Another fundamental aspect is to structure projects from a demand perspective rather than just supply, in line with what an investor or industry partner expects.

AseBio: What does the "Acelera Startups Sectorial Biotech Program" entail?

Antonio López. It is structured to accelerate the growth of startups that are less than 7 years old, regardless of the subsector they operate in. We expect to engage with about 500 companies and accelerate around 200 of them. It is a unique opportunity to participate in this program, fully sponsored by EOI and developed in collaboration with AseBio.

To achieve this, the program consists of an initial common training block that will address the main challenges and corporate operations of the sector in recent years from a theoretical-practical perspective, with input from industry leaders. There will be a second training block in smaller groups focused on specific needs that similar startups may have, allowing them to share individual learnings as well.

The next step involves creating a personalized diagnosis and roadmap for each startup, guided by experts who have evaluated hundreds of biotechnology projects in recent years. Based on this roadmap, there will be one-on-one mentoring meetings. Unlike other programs, each startup will be assigned multiple experts (in areas such as IP, regulatory affairs, business development, market access, fundraising, etc.) to address their questions and address various issues.

Finally, startups in the program will have the opportunity to participate in an investor event, with more than 10 specialized funds already confirmed to attend. Additionally, there will be various networking and business development events throughout the program.

AseBio: The program's content has been specifically designed for biotech companies, with a focus on accelerating their growth and increasing their knowledge in various areas. How are these objectives achieved?

Antonio López. The 'biotech' world has a set of peculiarities that make it unique and different in terms of the maturation process for startups compared to other sectors. The typical building blocks crucial for accelerating startups in other sectors, such as Design Thinking, Lean Startup, creating MVPs, etc., need to be contextualized and consider the almost unique characteristics of the biotech sector, such as:

• Founders often have a scientific background but lack business experience.
• High funding rounds are required from very early stages.
• Market entry and scaling often occur through established players (incumbents).
• Regulatory requirements are even more significant than in other sectors.

This combination often results in founders without prior experience not having sufficient knowledge of business matters and being unaware of their gaps in knowledge. Therefore, the program adopts a sector-specific and highly specialized approach, covering not only the common aspects of entrepreneurship mentioned earlier but also biotech-specific aspects such as the importance of IP, the scientific team, regulatory framework, the logic of specialized investors, and financial management particulars, among others.

AseBio: The program features a faculty of top-notch speakers that perfectly complements the training block. What added value do these professionals bring?

Antonio López. Indeed, our approach can be summarized by the motto "for bio startup professionals, by bio professionals." We are talking about individuals who have firsthand experience in key processes of creating and growing bio-companies from all perspectives: scientific, managerial, investment, legal, and more. They have played leading roles in many of the sector's major success stories.

This is a substantial difference when these professionals can firsthand share the keys they encountered, the dilemmas they faced, and what drove the decisions they made, not just focusing on the results alone.

AseBio: What do you expect from your participation in BIOSPAIN?

Antonio López. This BIOSPAIN is very special for SILO. Not only will we be promoting the Acelera Startups program, but we are also involved in three initiatives: On the 28th, we are organizing the Innovative Public Procurement in Health panel at the fair—an area where SILO leads the sector—sharing business experiences and financing expectations for the coming years with the Ministry of Science and Innovation. Additionally, on Wednesday the 27th, we will moderate a panel on advanced therapies organized by the Gipuzkoa Provincial Council, with whom we have been working for years on their ambitious territorial strategy in this field. We will also be with numerous clients who have promising initiatives in the sector, such as the ABIOINNOVA accelerator from the Salamanca City Council.

Finally, on a more personal note, as a member of the ASEBIO Board of Directors and someone deeply connected to the sector for many years, BIOSPAIN is a gift. It is an opportunity to reconnect with many friends and partners, sharing the unique energy and culture of this community.