[HN Gopher] How to Start a Biotech Company on a Budget
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       How to Start a Biotech Company on a Budget
        
       Author : flipchart
       Score  : 114 points
       Date   : 2021-01-21 13:26 UTC (9 hours ago)
        
 (HTM) web link (blog.ycombinator.com)
 (TXT) w3m dump (blog.ycombinator.com)
        
       | nceqs3 wrote:
       | Are there any guides on filing Patents as an individual for
       | biotech inventions? Seems like that is the most obvious way to
       | raise capital and protect IP.
       | 
       | Patent fees for an individual/small entity are only a couple
       | thousand dollars in the US.
        
       | dvdt wrote:
       | I'm the Co-founder and CTO of BillionToOne, one of the biotech
       | companies profiled in the post.
       | 
       | We're recently opened up a position for a Staff Software Engineer
       | (https://apply.workable.com/billiontoone/j/2F0405817C/).
       | 
       | If you're interested, please reach out to me directly at
       | david+hn@billiontoone.com
        
         | nceqs3 wrote:
         | Did you guys use a law firm to file your patents? How difficult
         | was the process?
        
           | dvdt wrote:
           | We used a law firm. The paperwork was quite straightforward
           | because our attorney managed it.
        
       | shrewdcomputer wrote:
       | > Arpeggio used their own technology to do drug discovery, and
       | sold it as "consulting" to build credibility with investors and
       | trust with a few initial clients.
       | 
       | This sounds like a great example of them focusing on one thing
       | and doing it well. It must have been a tightrope walk not to give
       | too much information away about their IP and get crushed by
       | competitors.
        
       | dnautics wrote:
       | > Intensely focused on demonstrating technical feasibility, he
       | and his co-founders found $75K in grant money and hired a postdoc
       | at Cornell to do the first proof-of-principle study.
       | 
       | That's _still_ quite a budget. Not the sort of thing accessible
       | to many people. What if you 're a grad student that just finished
       | their phd (coming off of making 40k a year for half a decade),
       | and not, say, a professor that has connections? Where do you get
       | this initial seed?
        
         | JabavuAdams wrote:
         | Well, hopefully you networked with your profs and their
         | contacts during that time? They can probably help...
        
           | dnautics wrote:
           | Not all professors are good at that, or even practicioners.
           | Ironically if you get away with doing good science as a grad
           | student there may even be an inverse correlation. Less time
           | networking = more time at the bench.
           | 
           | While I appreciate that self-promotion is a valuable skill, I
           | believed (possibly flawed) understanding? narrative? that
           | part of the reason why YC / tech incubation / tech can be
           | effective is that it provides a structure where folks who are
           | highly technically minded and historically preferred to spend
           | time leveling up on that can be given easy access to networks
           | with a builtin trust biased to some relatively technical
           | merit, and resources to help level up on networking at all
           | stages (whether that's PG's imprimatur that gives you access
           | to VC offices for late stage companies or resources to help
           | you find networkers in early stage companies).
           | 
           | If YC doesn't acknowledge the structural barriers that make
           | identifying technically meritorious biotech founders (vs
           | biotech founders that have focused on buzzwords and
           | networking) difficult then it's going to have a rough time
           | meeting the success expectation it has for software, on
           | biotech. It's nice to say you want biotech portfolio, but the
           | proof is in the pudding what are you _actually_ doing
           | differently to get it done?
        
             | JabavuAdams wrote:
             | There's something to what you've written, but I wonder
             | whether it's too black/white. Even successful paper
             | submission involves some level of strategizing /
             | networking, sadly. So if you're published at all, you
             | probably have some networking skills. It doesn't mean that
             | one has to take time away from the other.
             | 
             | I have not yet worked in a lab setting or where my PI is
             | strict about hours, but from my software background a lot
             | of "butt in seat" time is not really productive. My
             | instinct would be to automate as much as possible and spend
             | less time at the bench. But again, this is theoretical at
             | this point.
        
               | dnautics wrote:
               | Well usually your PI will do the initial stages of
               | networking or carry enough weight that you don't have to
               | do much networking on behalf of your publications. That
               | is a separate question from if your PI will do networking
               | FOR you. Some will, some won't, either by malice, by
               | ignorance, or by temperament. I worked for a nobel
               | laureate (who discovered restriction enzymes).
               | Publication was not a problem. He was lovely and fun to
               | work for, but in the end I had to leave academia because
               | he couldn't be bothered to network for me (he was more
               | interested in playing penny slots at the casino).
               | 
               | If you're in grad school, my strongest recommendation is
               | to optimize first for a PI that will network for you.
               | That is generally the most valuable form of networking,
               | because 3rd party validation generally carries a strong
               | amount of weight by human nature. Plus it potentially
               | takes minimal effort on your part.
        
         | hahla wrote:
         | Grant money is definitely accessible at least here in the USA.
         | I have seen grant funding available for various industries in
         | my state alone, and it doesn't require any specialized
         | expertise to apply for. Typically anything <$100k seems easier
         | to come by.
        
           | dnautics wrote:
           | Real questions, I'd like to know from someone successful at
           | it (is that you?): What was involved? How much of a proof of
           | concept was necessary? How many connections did you have?
        
         | [deleted]
        
       | reasonattlm wrote:
       | If you can get into an incubator lab space that isn't in a major
       | market like SF or Boston, where the rents are insane, one can
       | expect to set up a reasonable wet lab for most uses given $200k
       | in equipment and reagent costs and a couple of months of time.
       | Then expect $5-10k/month in operating costs outside of salaries.
        
       | mc32 wrote:
       | Without connections in the industry it would be hard.
       | 
       | These things cost time and money. It's not something you can do
       | in one year. You need five to seven years... if you're on the
       | right track.
       | 
       | Also you cannot know in advance if a clinical product can be
       | repurposed because that's not evident till you begin studying
       | your first target (where the data might show other unpredicted
       | positive outcomes elsewhere.)
        
       | koeng wrote:
       | I've just started a bootstrapped biotech company in the last ~4
       | months, and it's definitely possible, but does depend on your
       | niche. I'm lucky because I can live with my parents and convert
       | my room into a lab, but normally you have to rent a lab to even
       | get things shipped to you. I also previously had intentionally
       | developed the skills to do work on an actual "DIY" capex budget,
       | which most folks coming out of academia don't have.
       | 
       | Intense domain knowledge + knowledge of programming + affordable
       | automation is really a fantastic combination to have with
       | biotech. When the software isn't advanced enough, you can do
       | tricks with hardware. When the hardware isn't advanced enough,
       | you can do tricks with biology. When the biology isn't advanced
       | enough, you can do tricks with software.
       | 
       | It really does depend on connections, though. All of my early
       | customers are folks I've known in the community for years, so I
       | can get paid while working out all the kinks in the system.
        
         | JabavuAdams wrote:
         | I'm interested in lab automation, and ramping up on that. Do
         | you have any automation needs?
        
           | koeng wrote:
           | Sure.
           | 
           | Right now, Opentrons rules with their open source robots, so
           | liquid handling robots are pretty well handled. Xarm makes
           | good arms for interfacing with Opentrons, so then it comes to
           | everything else necessary to get to full automation.
           | 
           | 1. Automated plate hotels I need plate hotels to storage
           | samples that interfaces with my robot arm and robot systems.
           | This I'm basically using Theo Sanderson's designs for this
           | https://www.thingiverse.com/thing:2668120 since buying them
           | commercially is so darn expensive. I really need this for my
           | system, so I am building em.
           | 
           | 2. Plate sealer / unsealers My entire full automation
           | pipeline is built around NOT needing a plate sealer or un
           | sealer (something you can't do with the vast majority of
           | screening systems). Automated versions of just the sealer
           | itself cost more than 2 liquid handling robots and a robotic
           | arm combined (and all it does is seal plates!) I think there
           | is an opportunity for building simple but effective automated
           | plate sealers and unsealers.
           | 
           | 3. A train system I think Concentric (Ginkgo's COVID company)
           | uses something similar, but basically a system that can use
           | small trains to bring plates and reagents around a lab to
           | different robotic stations. I'll probably just do that with
           | lines of robotic arms, but I definitely spent quite a bit of
           | time thinking of how to do this. (in my factorio megabase I
           | really learned how to route trains, and I think it's exactly
           | the same problem I face with my robotic work stations). I'm
           | not sure how to scale the selling of that though.
        
             | daemonk wrote:
             | I completely agree with your point about being good at
             | software/hardware/biology is the key to running a
             | successful production biotech lab because you can try to
             | supplement various weak points with the other domains. I've
             | been 3d-printing devices that helps with DNA extraction in
             | my lab.
             | 
             | I am interested in automating the lab I am running now. We
             | have an opentrons that we bought couple years ago that I
             | never got around to using. But now that we are regularly
             | getting a decent amount of samples in a week, I really want
             | to get it going. Are you starting a lab automation service?
             | 
             | I agree with your point about plate sealer/unsealer. It is
             | a huge pain point in automation. However, I am not sure if
             | you can convince regulatory bodies to approve it. Are you
             | doing some kind of mineral oil top layer to prevent
             | evaporation? We've actually tried that before and it kinda
             | worked, but the problem is that the mineral layer messes
             | with the SPRI bead purification step. I am sure it can be
             | solved with more testing, but it just wasn't worth the
             | inconsistency at the time.
        
               | koeng wrote:
               | I'm starting what could be thought of as a DNA cloning
               | company. So sort of automation service, but for one
               | specific application.
               | 
               | > Are you doing some kind of mineral oil top layer to
               | prevent evaporation
               | 
               | The opposite: the process is pretty much based off of
               | dessication (plus a little bit of tube opening by the
               | bots for important chemicals). For thermocycling stuff,
               | I'm planning on just using Opentrons module with the
               | reusable seals. I really wanted to find a way to use
               | reusable seals everywhere, but I just couldn't think of a
               | way to do it well robotically. Thankfully, I don't need
               | to convince the regulatory bodies of anything, since I'm
               | just doing DNA cloning.
               | 
               | > We have an opentrons that we bought couple years ago If
               | you need to do multichannel stuff, do yourself a favor
               | and go buy Gen2 multichannels and toss your old Gen1. The
               | Gen1 multichannels are hilariously unreliable, but the
               | Gen2 are pretty solid. Love those bots overall though - I
               | got two of em so I can work in parallel!
        
               | daemonk wrote:
               | Desiccation is an interesting approach. I don't see it as
               | being used for every step of a reaction though? It would
               | take too long to wait for desiccation between every step?
               | And depending on the buffers you are using, you might be
               | increasing the salt concentrations after you re-
               | constitute? I guess you can take that into account when
               | you add the reconstitution buffer.
               | 
               | Are you open to discussing some kind of consulting
               | arrangement between you and my company? If so, how do I
               | reach out?
        
               | koeng wrote:
               | > It would take too long to wait for desiccation between
               | every step?
               | 
               | Desiccation is just for the storage steps. Otherwise I
               | just plan on passing liquids around, compensating for any
               | evaporation.
               | 
               | > Are you open to discussing some kind of consulting
               | arrangement between you and my company?
               | 
               | Sure! Contact me at koeng101 [@] gmail.com and we can
               | talk
        
               | JabavuAdams wrote:
               | Could you elaborate on what you mean re: convincing
               | regulatory bodies? I'm not used to working in a highly-
               | regulated environment. Why are they involved? For
               | certification of the lab?
               | 
               | EDIT> I mean involved w.r.t plate sealers/unsealers, not
               | more generally.
        
               | daemonk wrote:
               | If you want CLIA lab certification, there are a number of
               | rules surrounding cross contamination, which not sealing
               | a plate of samples properly might be a red flag.
        
             | dekhn wrote:
             | Are you really doing this at home, in a room converted to a
             | lab, with actual live biology?
             | 
             | I did that in my garage but after having to clean up a big
             | contamination and debug experiments due to temperature
             | fluctations, I realized there was a reason people use real
             | labs.
        
               | koeng wrote:
               | Yes I am really doing this at home with actual living
               | biology.
               | 
               | Garages are terrible for biotech because of contamination
               | problems. I have a bedroom that I've sealed quite well
               | with 2 box fans constantly running filtering the air
               | (tape a 20x20 filter to a box fan and it works great).
               | When I work with media or anything I also use a flame. I
               | still have some problems with contamination, but it is
               | manageable.
               | 
               | There are also biological ways to get around
               | contamination problems. So long as your media is clean,
               | if you use a strain like Vibrio natriegens, it just
               | outgrows literally everything, so it's not that big of a
               | worry.
               | 
               | I have a few ruuvitags + a raspberry pi to monitor the
               | temperature, and I live in Coastal California, so we
               | don't have that much fluctuation. It hasn't mattered for
               | my experiments, anyway, which are mainly just DNA
               | cloning.
        
       | throwaw4ybio wrote:
       | How can I take this seriously when it doesn't mention ebay
       | anywhere?
        
         | JabavuAdams wrote:
         | Explain?
        
           | ChefboyOG wrote:
           | I believe they're referring to buying lab equipment on eBay.
           | 
           | https://www.nature.com/articles/d41586-018-05655-3
        
           | koeng wrote:
           | You can buy a ton of very expensive biotech equipment off of
           | ebay for very little, which is what a lot of bootstrapped
           | biotech companies do (plus gov-deals and other pharma auction
           | sites)
        
             | throwaw4ybio wrote:
             | Exactly this! (+1 to govdeals too, when the auction is in
             | geographic range) While we've gotten nibbles from
             | accelerators, up to the interview stage, they want to see
             | an MVP before funding us. This is, of course, kind of a
             | non-starter when you don't have 200k lying around for a
             | minimal denovo lab, and there's not much in the way of
             | rental lab space where we are. Thankfully, after four years
             | of grinding on this as our side gig -- and a big slowdown
             | due to the plague -- we've got enough preliminary data to
             | apply for an NIH grant, which we're very optimistic about.
             | 
             | My wife and I have a setup up in our house (it's all GRAS
             | and Biosafety Level 1 stuff) and have mostly bought off
             | ebay and govdeals. She's a neuroscientist and I'm a
             | physics/engineering guy. My job is to handle the business
             | end, acquire gear, and maintain it so that she can science
             | as hard as possible.
             | 
             | Most of our lab gear is 80s and 90s-vintage gear we've
             | fixed up. You'd be amazed what a little analogue
             | electronics knowledge can do here; people will throw out a
             | device rather than replace the belts or motor brushes.
             | We'll get used and broken gear at a fraction of of the cost
             | of new and certified refurb machinery.
             | 
             | I'm currently modding our venerable Labline orbital shaker
             | incubator. Over the course to two months the tachometer and
             | both of the remote bulb thermostats on it went out, so I'm
             | installing a Johnson Controls A421 to manage the heater and
             | adding a $20 Hall effect tachometer to replace the analog
             | tach. The mechanicals are solid, though (got it for $300
             | plus freight!) and getting another would be a slow
             | expensive crap shoot.
             | 
             | BTW, readers, do you think that there is an audience for a
             | blog that talks about the details of rebuilding old
             | equipment like this? I'm not big on video, so it would
             | mostly be long form writing with lots of images.
        
               | koeng wrote:
               | I'd like that! If you want to get some readers for it,
               | check out the DIYbio forums on google groups. They aren't
               | as active as they were years ago, but there are still a
               | bunch of knowledge people there.
        
               | throwaw4ybio wrote:
               | Thanks for the tip!
        
               | daemonk wrote:
               | I want to point out that it really depends a lot on what
               | kind of lab it is. I think for R&D, buying cheap stuff
               | off of ebay or labx is great.
               | 
               | But if your goal is to eventually scale up and build a
               | production lab, you will need to switch your mindset when
               | you get some funding and buy some decent equipment. It
               | can make a big difference from my experience. My company
               | started out at a sub-par lab space with second hand
               | equipment. When we moved to a very well equipped lab, we
               | found ourselves exponentially more productive. Mainly
               | because we no longer have to constantly second-guessing
               | our results due to sub-optimal equipment/reagents. Re-
               | running experiments because of potential equipment
               | failure adds up in terms of resources and psychological
               | stress.
        
               | throwaw4ybio wrote:
               | Oh absolutely agree. The amount of time we spend _washing
               | dishes_ is absurd. We yearn for the end of the bootstrap
               | phase.
        
               | 1996 wrote:
               | > Most of our lab gear is 80s and 90s-vintage gear we've
               | fixed up. You'd be amazed what a little analogue
               | electronics knowledge can do here; people will throw out
               | a device rather than replace the belts or motor brushes.
               | We'll get used and broken gear at a fraction of of the
               | cost of new and certified refurb machinery.
               | 
               | (...)
               | 
               | > BTW, readers, do you think that there is an audience
               | for a blog that talks about the details of rebuilding old
               | equipment like this? I'm not big on video, so it would
               | mostly be long form writing with lots of images
               | 
               | I see a business spin: sell shovels for the upcoming
               | biotech boom. Get equipment on the cheap, fix it,
               | reseller it with a warranty.
        
               | hsuduebc2 wrote:
               | Absolutely! Blog about this is a wonderful idea. Sounds
               | really interesting. Can I subscribe now?
        
         | koeng wrote:
         | Maybe they were all govdeals type of people
        
       | ArtWomb wrote:
       | >>> Finding an initial product that's reimbursable and then
       | taking the shortest path to get there
       | 
       | This is really inspiring. Contrast with the typical story like
       | Sana Bio which burns tons of R&D cash. My question is: how do you
       | systematically search the potential solution space which may not
       | be your initial area of expertise? How did the solution to focus
       | on easily billable pre-natal diagnostics present itself to a team
       | with oncology expertise?
        
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