Early stage biotech challenges and the importance of brand narrative
November 27, 2022
Does your life science brand and company narrative stand out in the fiercely competitive startup landscape?
Early success in the biotech and life sciences space is not without its challenges. We’ve addressed how a company’s identity and narrative play an important role in securing vital capital, partnerships and attracting top talent.
Challenge 1. VC funding
Even when cash was cheap and VC funding was at an all-time high, competition for early-stage biotech and life science funding was fierce. Current economic and geopolitical concerns have only exacerbated this challenge, and not just for early-stage rounds. According to GlobalData, the U.S.-based biotech deal value decreased by 46% in Q1 2022, compared to the 2021 (1). Despite funding challenges and lower valuations, deals are still being made, and healthcare and biotech are among sectors picking up momentum from Q3s 2-year low (2).
Consideration: Are you telling the right story?
The need to have a clear and coherent narrative around your company’s mission—from clinical trials to commercialization (even if your goal is a pre commercial exit)—is imperative to compete for today’s VC dollars. Consider whether your narrative is telling a tight story in both short or long form. Is your messaging better spent illustrating your startup’s mission or addressing your product’s value proposition to solve an unmet need? Should you focus on your product’s novel mechanism of action? VCs need to understand your messaging quickly and clearly.
Challenge 2. Attracting top talent
Even in our current bear market, with impending tech layoffs, finding top life sciences talent will continue to be challenging. The hard and soft skills needed are ever changing, adding a new layer of risk for each key hire. Not only are life science startups and early-stage companies competing with big pharma for these key hires, but the increasing need for top engineers and data scientists means that your talent is looking at what the IT industry can offer them, often weighing the allure of big brands and their competitive pay packages and perks.
Consideration: Does your company brand draw attention?
It is critical to have a brand identity and concise messaging that reflects a contemporary position and culture. Think about the prestige that goes along with an offer from cutting-edge brands like Meta or Alphabet. Creating an exciting brand that reflects innovative tech and a forward-thinking culture will help you stay competitive in attracting and retaining top tech talent.
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In conclusion, it’s essential to tighten your brand identity and company narrative. As an operator, or marketer, ask yourself the following…
Do potential key hires see value in my startup as opposed to joining big tech?
Is my positioning and vision easily understood, does it stand for something?
Is there a strategic foundation for a content strategy that speaks to my key stakeholders, such as talent, investors, partners, and potentially clinical enrollment?
Do I have a planned calendar and channel plan to communicate with various stakeholders? Do I have a way of testing what’s working and able to optimize based off the data?
Today’s marketing resources are at your fingertips.
With all the tools and software available today, these marketing strategies can be addressed more rapidly and cost effectively.
OEM Group partners with startup and early-stage life science companies to tell their story and bring life to the problems they are solving. Whether that’s building a new identity, crafting an MOD or MOA video, or building a social media strategy, we are an efficient healthcare agency model bringing decades of big pharma experience.
References:
1. Global Data. Venture financing deal value for US-headquartered biotechs decreased by 46% in Q1 2022 compared to Q1 2021, finds GlobalData. https://www.globaldata.com/media/pharma/venture-financing-deal-value-us-headquartered-biotechs-decreased-46-q1-2022-compared-q1-2021-finds-globaldata/#:~:text=01%20Jul%2C%202022%20Venture%20financing,to%20Q1%202021%2C%20finds%20GlobalData&text=Venture%20financing%20deal%20value%20for%20US%2Dheadquartered%20biotech%20companies%20decreased,Q1%202021%2C%20according%20to%20GlobalData. Accessed 11/3/22.
2. Forbes Online. VC investing is at a two-year low—but there are a few bright spots. https://fortune.com/2022/10/20/vc-investing-is-at-a-two-year-low-but-there-are-a-few-bright-spots/?verification_code=DOVCGMRKYRFJ45&_ptid=%7Bkpdx%7DAAABEMcyfM3w_wIKCmNmUWoyZk0zemoSEGw5cmRjdmljYnNtaWJ1ajAaDEVYRkJZMTdUMzBWQyIlMTgwN2t2ZzBjNC0wMDAwMzEwcWoxcWs4MW5rbHJlYjBsNmt2ZyoXc2hvd09mZmVyWVE0Wk9RRDJXQTBFMTgwAToMT1RVVzUzRkE5UlA2Qg1PVFZBOVpEVkJFSlozUkt2LTIwMjItMTAtMjctMTMtNTgtMjktNTExLTlUaUdjR3ZrVExKbWFqOUstMzA0YzQ1MDk1NTgyZWQ0YmMyYzIzN2JjMDdjMGI3ZDhaJzI2MDM6NzAwMDo4MzAyOjRkZGE6MzAxNDphNzBkOjgyYjc6NzYwY2IDZG1jaMWw8JoGcBl4DA. Accessed 11/3/22.
