Did you know that San Francisco (https://www.ssf.net/our-city/biotech/biotech-in-ssf) is known as “Biotech Bay” and considered the birthplace of today’s biotechnology industry? Even as the threat of a recession looms across the American economy, biotech is expected to grow by 30% in 2023. South San Francisco alone has over 70 biotech companies clustered over two miles, and more companies are planned to join them (https://www.biospace.com/article/the-industry-s-hottest-spaces-hotbed-biotech-bay/). Young people choosing their collage major should consider an future in the life sciences. If we didn’t enjoy being one of San Francisco’s top CPA professionals, we might think about a change!
Why is this field so incredibly robust? It concerns the purpose-driven work of solving humanity’s most difficult medical challenges. Researchers continue to discover new answers to curing rare blood diseases, cancer, and genetic disorders, to name a few. That kind of work takes brilliant minds and plenty of energy to focus on a myriad of tasks and projects. While this is swirling around in a start-up leader’s mind, they are trying to secure funding too. Who is ready to invest in the new buildings, equipment, and professionals?
START-UP CPA FIRM FOR BIOTECHNOLOGY FIRMS IN SAN FRANCISCO PREDICTS SOLID FISCAL STRATEGIES WILL BE KEY TO SUCCESS
Despite the downturn in other sectors, venture capitalists continue to see the value of investing in start-ups. Especially in the biotech sector (https://www.kqed.org/news/11933882/beyond-vaccines-biotech-is-booming-in-the-bay-area-despite-a-cooling-economy). In prior years, Silicon Valley’s venture capitalists threw money out like candy to new biotech start-ups, but that’s changing. After several Bay Area start-ups spent their money and went bust, investors are warier. The VC climate is turning back to a more disciplined approach to investments. There must be more than a good idea to sway the savvy investor. Today, they expect biotech start-ups to demonstrate fiscal responsibility and company leaders must provide a solid, long-term budgetary strategy. How will a start-up manage growing pains? What will they do when a competitor challenges their research with something “better?” Will biotech leaders be flexible when the industry goes in another direction? That’s a lot to consider for start-up leaders buried in other responsibilities.
How can a promising San Francisco biotech entrepreneur set aside time to organize a clean record of audited financials for interested VCs? As a locally-owned team of professional CPAs serving the biotech sector, we understand how important it is to secure funding. We are a start-up CPA firm for biotechnology firms in San Francisco. At one point, we were a start-up too! We had to build a foundation to secure long-term financing, manage bookkeeping, fiscal projections and maximize our yearly tax returns. Juggling growth, challenges while remaining fiscally solvent is easier with a budgetary strategy.
When a San Francisco entrepreneur needs an expert Certified Public Accountant to set up their biotech start-up financials, they can contact us for help!