Scaling sustainable biotech start-ups

What are some crucial elements when scaling a sustainable biotech start-up? How are the European vs the U.S. biotech start-up ecosystems different?

I had the honour to ask these and some more questions to Bouke de Jong , the CTO of Planet B.io , a Dutch innovation hub for industrial biotechnology.

And now, it's my pleasure to share this conversation with you here. Enjoy the read!

Please tell me about your background and experience.?

My background is in biotechnology. During my studies of Life Science & Technology in Leiden and Delft, I was particularly interested in applying biotech to sustainability, as well as in biotech entrepreneurship.

After my studies, I wanted to work at the forefront of innovation and decided to pursue a PhD. My research was on the development of microbial cell factories to make them more efficient and economically feasible.

For my next career step, I knew I wanted to be somewhere where innovation and entrepreneurship would come together, so after my graduation, I moved to the U.S. and joined the start-up scene in San Francisco.

Among others, I worked at Bolt Threads, known for the development of sustainable silk and leather. In this phase of my career, I got a really good understanding of start-up life and the challenges in scaling up the tech and the business.

Again, it was a great learning experience but going forward, I wanted to learn more about the product commercialisation process. This opportunity came when I joined DSM as a Principal Scientist and group lead.

And finally, last year, after nearly 10 years in the U.S., I decided to move back to Europe and joined Planet B.io as its Chief Technology Officer. I facilitate the success of bio-based start-ups. We lower the boundaries that they run into, and support them in finding the right context, whether it's regarding IP, regulatory or technical aspects, or investors.

How is your previous experience helping you in your role at Planet B.io?

I think it is really valuable that I experienced both the start-up and the corporate worlds, and I know the strengths and challenges of each of them. For example, often start-ups focus on scaling up their technology so much that they don't give enough thought to turning it into a product that real customers will buy. This missing commercial mindset is on the other hand deeply rooted in the corporate companies. Having worked on both sides, I know what is needed for a company to be successful, and what is important to focus on in the process.

Another useful aspect of my previous experiences in different countries and continents is that I got to know different company cultures, different ways of how people work together, and different types of leadership. All the insights help me guide our start-ups in building successful teams.

With your move from the U.S. to Europe you are probably also learning a lot about the differences between these two regions - what are your observations so far in the biotech business space?

The large difference is how companies get financed. Many early-stage European start-ups rely heavily on subsidies, and often it's 50/50 co-financing, meaning 50% comes from the government. Because of that, the competitive climate in Europe is driven not only by markets but also by local governmental subsidies. While governmental support is important at an early stage, one should look out that this is not an incentive for not thinking bold and big enough. Natural market selection is a good tool to promote only the companies with the largest chance for commercial success.

Another significant difference between the U.S. and Europe is the mindset. In Europe, the founders frequently apply for grants to develop their technology a bit further. It's more like an incremental advancement until the funding suffices. In the U.S., the mindset is "Let's shoot for the stars". You either go full into it or you don't do it at all. It's a high-risk-high-gain game, with huge investments, including, of course, VCs.

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What's your take on the governmental subsidies in Europe?

Usually, the governmental support comes with a set of requirements and priorities. If you're a goal-oriented start-up with a clear strategy and these requirements do not align with it, you should think twice before you apply. It might be tempting to start changing the strategy to fulfil the requirements and get the funding, but, generally, I'd say: if the funding fits into your strategy - apply, but if it doesn't - don’t. It's important to keep your focus.

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From your experience of scaling a start-up, what would you say is the most important in the process?

It's crucial to be very mindful about your clients.

As a start-up, you have to understand who your first clients will be, who will buy your product, why they will buy it from you, what matters to them. For many start-ups, the first clients are big corporate companies, which typically have quite different dynamics. It's important to understand these differences and be realistic, for example, about how long the validation process might take on their side. When choosing your clients, I'd also suggest avoiding a situation when you'd be dependent on one client only.?

Another crucial aspect is to have the end in mind and think really well through how to get there. Many start-ups need to consider how long it will take to have their products approved on the regulatory side. You need to, of course, also know the market and carefully evaluate how difficult it will be to penetrate it. Think not only about your technology but also about what it will look like when you make your product at the required scale. And how your business will need to change and scale to sustain it.

This end in mind has to always be there. It's your North Star, and you simply must have it in sight when you're going from one milestone to the next.

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What excites you about environmental biotech?

Leaving a better planet for the next generation and the idea that we can bring change by truly innovating, and using technology to become a better version of ourselves. We have the power to use our knowledge of the environment, biodiversity, and climate, to come up with solutions that are sustainable, help the planet and at the same time do not impact the quality of our lives. It excites me to be part of this change.

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Thank you Bouke for your time and insights!

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Are you interested to learn more about Planet B.io? Check the website at https://planet-b.io/