How Fledgling Start-Ups Can Benefit from Accelerator Programmes

Giovanni Rizzo | Medical Plastics News | July 7, 2017

Start-ups in the life science sector are a source of invaluable innovation, entrepreneurial spirit and ultimately, important developments that could improve patient health. It is through new ideas that the sector can face current and future challenges, such as an ageing population, the need to invest in new-generation, digitalised technology, and a rise in patient demand of service and value for money. But data shows that 90% of all start-ups fail within the first year, a worrying statistic considering the wealth of advantages that innovation can bring to the life sciences industry.

Giovanni RizzoOne solution for start-ups in need of assistance is to join an accelerator programme. A business accelerator offers funding and access to investment, as well as other types of support, to early-stage start-up companies. Such programmes provide a range of benefits to fledgling companies and promote growth and development in industry.

Funding for life science projects tends to reach established businesses rather than early-stage life science start-ups, yet it is at this early stage that businesses need significant financial support. The global life science sector is set to grow to the value of $447.5 billion by 2020, but with limited access to investment, start-ups tend to go public too early to raise capital. In doing so, they risk undervaluing and placing undue pressures on their business. Accelerators can help to address this vicious circle where start-ups need funding to achieve maturity, but only mature businesses receive funding, by providing new businesses with the finance necessary to build solid foundations...