From the new report from California Life Sciences Institute on the economic strength/aspects of Bay Area life science startups:
Pre-Series A life science companies in the Bay Area are significantly impacting the local and state economy. This is the key finding of a survey of 137 Bay Area life science startups conducted by the California Life Sciences Institute (CLSI) in Q3 of 2015. While these startups are on the leading edge of innovation in the industry, they are often not captured in traditional analyses, leaving uncovered the important economic and workforce contributions of the region’s youngest companies. As members of a vibrant and innovative life sciences cluster, these under-the-radar companies are attracting significant private and public funding, are filing and receiving patents, and creating jobs in California.
Out of 450 surveys disseminated from August – October 2015, responses were received from 137 startups, a 30% sample. The data are also a representative sample – 22% – of the just over 600 startups we have identified in the cluster at large1. Survey questions were created by CLSI in conjunction with QB3 and Silicon Valley Bank (SVB). SVB, JLABS SSF and JLABS@953 assisted with survey dissemination to tenant companies. CLSI also collected responses from 33% of 150 Fellow startups, members of the California Life Sciences Association (CLSA).
Stage of Development: Emphasis on Early
The majority of company respondents are concentrated in the early stages of development, particularly in the pre-clinical or R&D phase, accounting for over 60% of responses, followed by clinical (13%), commercial (12%) and beta testing (9%)2. (Figure 1) Over half (59%) of company respondents are one- to four-years old, with a full 13% under one year since inception. (Figure 2)
If we extrapolate these findings to the estimated 600 startups in the cluster, this suggests that over 380 companies are operating in the R&D or pre-clinical stages of development.”