Biotech Startup Case Study

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4.4 Case 4: Biotech startup Case description Case 4 refers to a small Brazilian startup company which focus its activities in research and development of new processes and products based on green and renewable materials. The company has four main acting lines: 1) development of new third generation ethanol production processes; 2) development of herbal drugs and cosmetics; 3) technical analyses and reports about heavy metals contamination; 4) biochemical analysis in general. One special aspect of the company's vision is the social view. The owners are committed to drive the projects in direction of sharing and offering technology to poor communities as a form to improve the life condition of them. This social driven strategy is known as directed …show more content…

Along the discussions with the consultancy team, the owners realized that the initial idea of licensing the use of the production process to small refineries could not be the best strategy to diffuse the technology. The lack of control of who would use it; the complexity to operate a process so sophisticated and the possibility of any refinery copy the process, decreasing the patent value, were some of the factors that influenced the decision to change the strategy. The entrepreneurs decided to try to find a way to sell the patent rights to some huge company able to pay a great amount of money, and so, use these financial resources to finance the development of the others research lines, henceforth focused really in the base of the …show more content…

Once this new strategic decision was identified, the challenge that emerged was the conduction of the relation with the venture capital fund. The decision of abandoning the initial strategy and sell the technology to a huge company able to pay a great amount of resources and capable to manage the complexity of a technological industrial plant became incoherent with the terms accorded with the fund. In doing so, the RO approach was an instrument to negotiate with the fund the future of the partnership and justify the strategy

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