Dan Schmitt used his role as an Entrepreneur in Residence at Northwestern University to gain priority access to new technologies. This strategic position allowed him to secure the foundational asset for Actuate Therapeutics, directly bridging academic innovation with commercial enterprise.
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Getting a partnership deal done requires more than a good pitch; it requires an internal advocate. Leaders should leverage their network to identify and cultivate a champion inside the target company. This person is critical for navigating internal bureaucracy and pushing the deal over the goal line, as "there's a million ways for deals to die."
The founders leveraged their connection to Berkeley's business school as an institutional resource. This provided a no-cost environment for research, development, and testing, allowing them to vet and refine the business concept before launching.
Despite being seen as innovation hubs, universities face identical organizational barriers as large corporations. Academics report that internal power structures, cultural inertia, and siloed departments create bottlenecks that prevent them from effectively commercializing novel IP, mirroring corporate struggles.
Oshkosh avoids demanding a Right of First Refusal, which can scare off potential acquirers. Instead, they secure information rights and board observer seats. This ensures they are notified of any acquisition talks, allowing them to enter a competitive process without limiting the startup's exit opportunities.
Ainsworth believes a responsible biotech entrepreneur envisions the end goal—acquisition or IPO—from day one. At RetroSense, this meant constantly engaging with potential acquirers like Allergan to understand their needs and generate the specific data required to become an attractive M&A target.
For years, Actuate's CEO has shared progress with large pharma companies, not just for early deal-making, but to get critical feedback on their development plan. This helps them understand what data potential acquirers need to see to make a compelling offer later.
When transitioning from academia to industry, Bruce Culleton mitigated career risk by negotiating a return path with his university department. This "safety net" provided the confidence to explore a new environment, showcasing a smart strategy for academics considering a corporate move.
A biotech investor's role mirrors that of a record producer by identifying brilliant talent (scientists) who may lack commercial experience. The investor provides the capital, structure, and guidance needed to translate raw scientific innovation into a commercially successful product.
To avoid the pitfalls of scale in R&D, Eli Lilly operates small, focused labs of 300-400 people. These 'internal biotechs' have mission focus and autonomy, while leveraging the parent company's scale for clinical trials and distribution.
Incubating a company with a proven internal employee who develops an idea, like Every did with Good Start Labs, is a superior model. It bypasses the adverse selection problem inherent in recruiting external founders for pre-formed ideas, as the founder's capabilities and commitment are already known quantities.
