How to Prepare for a Successful Biotech IPO

Any biotech company that has reached a certain size and is in need of investment will have to consider the critical question: is it time to go public?

Navigating the stock market can be particularly challenging for biotech companies. The biotech industry has some unique requirements that sets it apart from, say, tech or real estate.

“The funny thing about biotechs is that the more successful they are in advancing their research, the more money they need,” said Michael Schatzschneider, the German Representative for the Euronext stock exchange.

“In particular for biotech but also for medtech, financing is almost limited to equity in the early stages,” Schatzschneider told me. “Biotechs in research stages are not bankable in a traditional sense, meaning they will not receive any loans from banks. That’s why capital markets are so important for biotechs.” 

Why go public?

The main reason why any company goes public is simple: money. Biotech companies in particular need a lot of funding, especially at the later stages of development. At the same time, venture capital investors that funded the early stages might start seeking an exit, which can often take the form of an initial public offering on a stock market.

“For most of the companies funded by VCs,

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