Angel investing: Why cancer research should continue onwards
Many professionals are spearheading cancer research nowadays. In the interview, Angel Investing in Cancer Startups and Research, Robyn Leary of Stentorian Ventures makes it a point to invest in cancer startups, given the rising risk and cancer incidence rates.
The importance of cancer research
Thanks to research, medical devices, and technological advancements, the average life expectancy has drastically improved. Despite these feats, cancer remains the leading cause of mortality because of its complexity as a disease.
Cancer covers more than 200 different diseases, all different on genetic and molecular levels. Treatments may eventually become ineffective because of their developed resistance through mutations.
Investing in startups that focus on life sciences allows researchers to progress more in cancer research, producing new technology and medicines.
What investors must expect and look forward to
Accredited investors, including angel investors, typically need to wait for their invested companies to develop and reach their reinvestment potential.
Leary says that the timeline for the finished product in drug development has been accelerated to 10 to 15 years. She suggests that an angel investor can put money into developing medical devices and digital health technology since these products do not take as long to develop.
An angel investor or an accredited investor who is actively looking for startups to invest in can look into startup communities, such as any biotech company directory.
Investing in the more minor players of the biotech industry
There has been an astonishing amount of biotech companies emerging in the industry, each with its area of research. Leary made an important point on investing in smaller firms other than those currently dominating the market. She points out the following:
The spurring innovation results from the government, academia, and biotech collaboration. Without the financial aid from investors, research would not have been able to progress as much as it could today.
The growing interest in “smart money”
Leary adds that it is tough for individuals to invest in firms nowadays since many biotechnology startups prefer to look for smart money. Smart money is capital put by an investor with operational background or expertise in drug or device development. Unlike lone angels, many startups prefer these investors since they can help dictate medical strategies, which may bring additional value. For angel investors, it may be wise to get into an angel investing group of venture capital funds.
Despite the increased rate of the disease, cancer research has indeed grown over the years, primarily focusing on preventative measures. Although risky and takes an extended time for the return of investment, funding cancer startups will prove beneficial for the fight against these life-threatening diseases.
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