Aussies need to get smarter about markets: VC

The lack of use of market intelligence is a key distinction between Australian biotech companies and their counterparts in the US and Europe, Teraform Ventures' Haydn Wright told attendees at a BioMelbourne BioBreakfast this morning.

"It's a key tool in the development and delivery of technology to the market," Wright said. "You have to have market intelligence."

Wright said market intelligence included product identification and applications, the path to market, strategic analysis of competitors and industry alignment and potential distribution paths, and should be as comprehensive as possible. "We often take for granted the critical path to market," he said.

Attendees also heard from Shaw Stockbroking's Alex Fabbri and Deutsche Bank's VP of mergers and acquisitions Andrew O'Brien about what investors look for from biotechnology companies. Coming through loud and clear was the need for clear communication by companies about the strategy and business plan. At the top of the list for both the broker and the investment banker was the need for companies to set realistic milestones and meet them.

"[Investors] really need to see that if you promise something to the market, you deliver it on time," O'Brien said. Delivery on key milestones often meant success in later rounds of capital raising.

Fabbri said companies also needed to focus less on the science and technology and more on the risks and outcomes, when talking to potential investors.