Y Combinator Looks At Biotechnology Business Startup Firms

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Monday, April 28, 2014.

The venture capital scene has changed over the years, along with the restructuring of the economy as well as other factors affecting the profit potential for various markets. For example, the technology industry in the past has been a popular target for venture capitalists in California and other states. However, there are signs that the focus of venture capitalists will be shifting from technology to biotechnology business startup firms in California and other states.

One startup incubator has recognized this potential shift and is looking to capitalize on this. Y Combinator has helped various technology startup companies attain considerable success. Some of the previous technology startup companies assisted by the incubator include Dropbox and Airbnb. Now, Y Combinator is looking at potential venture opportunities within the biotechnology industry.

In the past, the incubator was hesitant to invest in biotechnology startups because the required infrastructure is usually expensive. Also, results are usually not obtained from operating labs and experiments for several years. Additionally, the revenue streams for such businesses are usually not easily predictable. However, now the incubator believes it is a good time to enter the biotechnology market.

A business startup within the biotechnology sector may want to consider approaching an incubator like Y Combinator to obtain assistance and possible venture capital funding. However, before a startup company begins in any industry, it would be wise to understand the relevant laws for that industry. Incorporating compliance to these laws will help save the new company from possible future legal disputes in California.

Source: qz.com, "Curing cancer or AIDS could be the next frontier in Silicon Valley innovation", Rachel Feltman, April 25, 2014

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