This is Part 4 in my series on the biotech revolution.

Biotech 2.0

Who will fund the future of biotech?

Introduction:

In my post It’s 1994 Again, I explained how we got to Biotech 1.0:

Molecular biology went mainstream in 2020 with COVID virus sequencing and vaccine development done in days and treatments distributed globally in months.

10+ years ago, software was eating the world. Now biology is eating the world.

We are now entering the Y Combinator Era for Biotech. As I described in that post:

Three key developments created a booming tech seed funding market:

1. Tech hardware got replaced by cloud services, dropping the cost of starting a startup to <$100K.

2. Y Combinator was created in 2005 and has now funded over 3,000 startups.

3. Hundreds of institutional seed funds formed to invest before, during, and after YC.

To get to Biotech 2.0, we need to learn from Web 2.0 and prepare for the booms and busts.

Biotech is following the same technological revolution roadmap as the internet, just 20-30 years later.

The last 5 years in biotech has been a boom to bust cycle like 1996-2001 in tech.

And recent biotech VC funding has been declining in step with public biotech indexes:

But the tech startups and investors that performed the best in the last 20+ years doubled down in recessions and rode the successive booms all the way.

Now is the time for biotech startup founders and investors to start building for Biotech 2.0!