2006 was a fantastic year. The colossal crisis that hit the western world as the dot.com bubble burst was long forgotten, and capital seemed to be available at every corner. Nobody was aware yet of the coming doomsday of the global financial sector in 2008.
Many new companies started to take off in the first decade of the new millennium in life science.
Intercell- founded in 1998 - did its IPO on the Austrian stock market in 2005. Werner Lanthaler led the IPO as a CFO and built Evotec into a global innovation engine.
Marinomed started in 2006 as a spin-out of the University of Veterinary Medicine, founded by Andreas Grassauer and Eva-Maria Grassauer.
Nabriva - founded by Rodger Novak, now Co-Founder and President of CRISPR Therapeutics - was spun out of Novartis in 2006
Themis Bioscience started in 2009, led by Erich Tauber and acquired by MSD for 1,1 billion dollars (according to Pitchbook)
Apeiron Biologics started in 2003, developing the research results of Josef Penninger.
These are just a few examples of companies that started alongside major financial crises, like the burst of the dot.com bubble and the 2008 financial crisis after the collapse of the Lehman brothers.
Starting a company was a massive adventure in those years as no startup ecosystem existed like Europe has today. Also, finding mentors, coaches, and seasoned life science investors was hard work when the ecosystem was young.
A lot has changed since 2006; the ecosystem evolved into a great support system for scientific founders, with the first successes of life science companies; more knowledge about the secrets of structuring deep tech companies is available than two decades ago.
But is the world perfect now, or are there still challenges that need to be overcome to create a better breeding ground for deep tech teams and their technologies that have the potential to change the world?
McKinsey digs deeper into Biotech.
As discussed in a previous blogpost, the consulting firm McKinsey looked at the Biotech sector in Europe very closely and came to some fantastic conclusions in a recent study.
A lot of work still needs to be done, and I wanted to look at these hot topics with proficient people in the field.
In this conversation, I will talk with Alexander Schwartz and Ingrid Kelly Spillmann about the future of the Early-Stage Ecosystem in Europe.
Speaker in the Episode:
Alexander Schwartz joined IST cube in 2018 as a Partner. He has more than 15 years of experience in management consulting, eight of which with McKinsey & Company in Vienna and Chicago. His focus has been on strategy, innovation, and M&A in chemicals, materials, agriculture, and life science-related industries.
Alexander is a scientist by education and heart: He studied chemistry at TU Graz, ETH Zurich, and the University of Vienna before moving on to become a postdoctoral fellow at Harvard University. From 2013-2015 he was a part-time research fellow at IIASA (International Institute for Applied Systems Analysis), a leading European Thinktank.
Ingrid Kelly Spillman joined the IST Tech Transfer team in October 2018 after spending several years at the University of Vienna, where she was responsible for managing the life sciences technology portfolio and supporting spin-out companies. Ingrid worked as a patent attorney in and for the pharma industry for more than a decade in different countries before moving into technology transfer. At IST cube, she will primarily be involved with Biotech, pharma, and chemistry startups, emphasizing intellectual property and legal matters.
Ingrid holds a Ph.D. in molecular biology from the University of Cambridge. She is a qualified European patent attorney with RTTP (registered technology transfer professional) certification.
IST Cube
IST cube focuses on startups with a strong background in science and technology, such as academic spin-offs or young deep tech companies. The fund leads investment rounds in pre-seed and seed stages and has the ability for follow-on investments in later rounds.
The investment team understands the needs of science and tech-based startups and offers tailored support for entrepreneurs. Their hands-on help includes individual coaching and mentoring, as well as access to advanced lab infrastructure and office space. The team has vast expertise in areas that are critical for spin-offs, such as technology commercialization, IP strategy, fundraising, and public grants, and works fast and straightforward, our term sheet is simple and easily understandable, as we want to help founders thrive.
Topics we discuss in the show:
In this conversation, we discuss the Future Of the European Eco-System and talk about topics like:
Ecosystems
Early-Stage Investments
What Are the Cornerstones of VC Investment Stories
From Science to Business
The IST Ecosystem
and much more…
Check Out the Speaker’s Profiles:
Video to the Episode and Links to other Platforms:
LISTEN TO THE EPISODE WITH THIS LINK
Timestamps:
00:00 Introduction
02:50 Introduction Alexander Schwartz
04:12 Introduction Ingrid Kelly Spillmann
06:05 How are IST, Twist, and IST Cube linked?
09:21 The Success Story of IST – from Greenfield Operations to Top 3 in 15 years
13:20 IST Cube’s Role in the Early-Stage Investment Community
16:45 The People behind IST Cube
19:00 Investment Focus of IST Cube
21:50 What is the attractive opportunity in early-stage investments?
26:00 When is the right time to reach out to VCs?
29:30 How Academic and Business Mindset work Together in Early-Stage Development
34:45 The Attitude for Fundraising Companies
38:20 What is the right timing for creating a spin-out company?
43:14 What deal structures are possible for early-stage companies?
48:25 Entrepreneurial Expertise in the European Eco-System
58:50 Startup Business Models in the Early-Stage Investment Eco-System
01:03:00 How Investors and Start-Ups Work Together to bring positive change to the World
01:06:00 The IST Cube Eco-System in 2021 – Build Around Collaboration and Open Innovation
01:09:15 How The Innovation Eco-System in Austria Collaborates to Support Companies to go from Zero to One
01:12:00 How IST Cube Helps Scientists Making the Transition from Academia to Business
01:17:00 Ideas for the European Eco-System
01:20:10 Failure Culture in Europe
01:23:30 Exit Strategies for Founders and Investors
01:28:35 Four Attributes Startups Should Have to Fit into VC Models.
01:32:40 What is the essential first step in the creation of a new company?
Noteworthy Articles:
The University Spinout Report 2021: which UK universities top the rankings for turning innovation into commercial success? UK universities rank among the top universities globally, comprising four of the top 10, according to leading authority QS World University Rankings. UK institutions are renowned for world-changing innovation, particularly in fields such as pharmaceuticals, engineering, and IT. Read more…
VCs are racing to pay more to get smaller pieces of less profitable companies … the capital crush…the round preemption that has become common…rising valuation marks that have become the entry price to hot startups’ cap tables…and investments into growth have all come together to create a VC market unlike any that I can recall… Read more…
U.S. venture capitalists bet big on European startups American venture capitalists are investing record sums in European startups, setting themselves up to repatriate returns. Read more…
Thanks, Alexander Schwartz and Ingrid Kelly Spillmann!
If you enjoyed this session with Alexander and Ingrid, let them know by clicking on the link below and sending them a quick note on social media:
Click here to thank Alexander Schwartz on Linkedin!
Click here to thank Ingrid Kelly Spillmann on Linkedin!
Click here to let Christian know about your number one takeaway from this episode!
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The Future of Early-Stage Deep Tech Investments in Europe