Alex Zhavoronkov, PhD, CEO of Insilico Medicine — one of the world's top generative artificial intelligence (AI) drug discovery companies — built his company over 10 years. Today, it grosses many millions of dollars in annual revenues. Drawing on his success as a biotech entrepreneur, Zhavoronkov offers five top tips for startups and would-be founders.
He offers insights about research and development as well as potential investors and biotech funding -- guidance young companies can use to navigate strategic growth and maximize success.
This interview has been edited for length and clarity.
Tip 1: Focus on your product or deliverable
Regardless of how much money you raise, what kind of PR you generate or what kinds of partnerships you create — if you don't deliver, you should not exist. If you're doing drug discovery, make sure you're targeting a clinical program that can result in a clinical trial.
Tip 2: Choose the right investors
If you choose investors whose goals are not aligned with yours and who cannot provide you with infrastructure, you will basically give away a significant piece of your company.
Biotech is an area where you want to raise money from biotech-focused venture capitalists. If you are an AI-powered drug discovery company, make sure you raise money from biotech investors first. Tech investors usually don't understand the biotech industry and may not be able to provide you with suitable value.
Tip 3: Choose the right board members
Make sure you choose people who share your values and are driven for your company’s success. It is key to have a board of strong leaders with a knowledge of the industry and a passion for your company's work.
Tip 4: Do not be a serial entrepreneur
If you are in biotech, you should not think about shiny new things. You need to stay there until the drug gets approved.
Some people start companies and quit after five years to do something else when shiny new things come along. In biotech, you need to commit to a therapeutic program more than committing to your career.
It's great to start new companies, but it's much more impactful to develop new drugs. So you need to be prepared to spend 10 to 15 years of your life with that company. If you jump from place to place, you're actually going to create a lot of waste. Some great ideas will die in somebody else's hands.
Tip 5: Be peaceful
Whatever you do, stay away from politics. You may want to support somebody or be part of some movement. When you are in biotech, if you really want to change the world, you need to focus on what you do best. Stay away from debates.