Biotech ER or life science consulting for VC

I’m a biochem major at WashU who’s late game goal is break into biotech VC. I’m wondering if it makes more sense to go into MC or biotech ER—i don’t plan to get a PhD or MD, so I’m hoping relevant experience can act as a substitute for a higher degree. > I know ER is public markets but in my mind a lot of skills are still relevant for determining whether or not to invest in a start up. For example, you are learning a lot about the market as a whole, analyzing clinical trial risk and quantifying its probability of success. These all seem relevant to biotech VC. > On the other hand, I have a friend at an MBB who has said that the exposure to many different firms would allow you to learn about the market. You would also gain experience navigating some of the problems biotech companies face (although at a later stage since they are affording an MBB), and you are sometimes involved in the acquisition of a smaller biotech company, meaning you are on the other side of what is ultimately the end goal for a lot of these startups. > Tdlr; can someone in biotech VC (or just VC in general if they are knowledgeable of this field) give their thoughts on whether biotech ER or life science consulting is better to break in? I could see the argument for either but hopefully someone with more experience has a better perspective.

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Based on the most helpful WSO content, here's what you need to know about breaking into biotech VC with a background in either biotech ER or life science consulting:

Biotech Equity Research (ER)

  • Relevance to VC:
    • Market Analysis: You will gain a deep understanding of the biotech market, which is crucial for VC.
    • Clinical Trial Risk: Analyzing and quantifying clinical trial risks is directly applicable to evaluating biotech startups.
    • Public Markets Experience: While ER focuses on public markets, the analytical skills and market insights are transferable to VC.

Life Science Consulting (e.g., MBB)

  • Relevance to VC:
    • Exposure to Multiple Firms: Consulting provides broad exposure to various biotech firms, offering a comprehensive view of the market.
    • Problem-Solving Skills: You will develop skills in navigating the challenges biotech companies face, which is valuable for early-stage VC.
    • Acquisition Experience: Involvement in acquisitions of smaller biotech companies gives you insight into the end goals of many startups.

Considerations

  • Without a PhD or MD:
    • Relevant Experience: Both paths can substitute for a higher degree by providing relevant industry experience.
    • Networking: Building a network in either field can be crucial for breaking into VC.

Insights from WSO Threads

  • Biotech ER:

    • "You will need to learn how to invest in biotech and show people you know how to invest in biotech. So maybe get a few good stock pitches and then try to discuss them with people in IB, ER, HF, etc."
    • "Being in a good HC ER group can help with interviews and provide relevant deal experience and industry exposure."
  • Life Science Consulting:

    • "For early-stage VC, most firms will want you to have in-depth industry/product knowledge and preferably some involvement in a successful startup."
    • "Many innovation/technology/VC types often have some consulting-DNA."

Conclusion

Both biotech ER and life science consulting offer valuable skills and experiences that can help you break into biotech VC. Your choice may depend on your personal interests and career goals: - Biotech ER: If you prefer a more analytical and market-focused role. - Life Science Consulting: If you want broader exposure to different firms and hands-on problem-solving experience.

Ultimately, both paths can lead to a successful career in biotech VC, especially if you leverage your experience and network effectively.

Sources: Confused Scientist: Where do I fit in? Strategy Consulting, Venture Capital, et al., Biotech finance: from IB to VC / HF to funded startup, Healthcare / Biotech Venture Capital?, Post MBA IB: deciding which group?, Guide To Evaluate a Biotech Company

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Can only speak for ER - typically if you work for a top analyst then you wont have any problem getting looks at Orbi like funds. Very straightforward, youl get inbounds from HH's.

 

If you have advanced degrees etc, BioTech ER at the senior levels is one of the highest paid seats on the street. More than bankers and PE professionals. Have heard through word of mouth of astronomically high figures in the 5-20 million range for those that are extremely good.

It’s a niche area of equity research, a field that has suffered structural decline for a while, that is an extremely lucrative career.

 

Molestiae blanditiis fugiat reprehenderit laboriosam libero repellat quia. Autem et qui cupiditate similique. Ex omnis fugit commodi qui vitae.

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