Funding the Indian Life Science start-ups – a perspective

The new ‘start-up’ culture developing in India is a good sign. Investors are getting more interested in this space; however, the investors also need to look beyond the e-commerce space. Many life science based organizations can be a good bet for middle to long run outlook. Life science offers a big arena to potential investors. From drug discovery companies to Bioinformatics organizations looking to disruptive technologies to cater to the ever increasing healthcare needs.  Although life science domain requires a considerably longer gestation period yet there are companies or technologies that can give a quicker return on investment. Investment from a well meaning ‘patient’ investor(s) can be a force multiplier. The idea of an ‘ideal’ investor is not very difficult to fathom. Good investment can really turn around a company faster as compared to, let’ say, if the start-up wanted to scale up through only internal accruals. 

Life Science organizations require highly skilled manpower. The technology used is ever evolving hence there is a big scope for right investment in the right organizations. The chance of ‘fly-by night’ operators in this domain is slim or negligible. With newer breakthroughs in hardware and better understanding of the human genome, smarter drugs, accurate diagnosis-prognosis are all in the realm of reality. Personalized/Precision medicine is the new buzz word which includes not only advances in medicine but also diagnostics, bio-IT, genomics, proteomics etc. Start-up organizations working in all the above mentioned mini-domains ultimately would cater to the ocean of better healthcare. Therefore the success of many of these organizations would depend on how the investor community looks at this space and helps it grow more thereby not only creating jobs but also giving India  the ‘knowledge-edge’ that many of the intellectuals talk about as our strength.

I believe that the start-up revolution in the bioscience space in India has not even started but if nurtured well it has the potential to turn around and give India its next ‘Life Science Google/Alphabet’