The advancement in technology has led to the growth of the biotech industry. Biotech startups pop up every year. Some biotech startups manage to attract media attention and secure generous funding because of their innovations, while others do not stay long in the market.
The Covid-19 pandemic outbreak has caused massive losses across many sectors, but biotech stocks have witnessed a surge in interest.
Here are the five biotech startups to watch in 2020:
Hexagon Bio
The Menlo Park-based company gained media attention when it attracted $47 million in funding to manufacture new drugs using fungus. Hexagon Bio started in 2018, and it has achieved notable success. The startup uses a combination of genomics and computational biology to identify fungal toxins to be used as the basis for cancer drugs and other infectious diseases.
Hexagon Bio founders are experts in biology and data science. They use their skills to sequence fungi genomes and evaluate whether or not they have been altered. The startup shows promise, which is why it attracted $47 million from the series A round.
Samumed
Samumed is the richest startup on the list and in the biotech industry. The company focuses on stem cell research to create medicine to reverse aging, hair loss, bones, and joint problems. Studies show that the company develops relatively safe drugs that can stimulate hair growth and improve joint mobility for individuals with arthritis.
Osman Kibar, the founder of Samumed, started the startup in 2008 at Pfizer incubator but went separate ways with Pfizer. Samumed raised $438 million in 2018, and it has a valuation of $12.4 billion.
Ginkgo Bioworks
The startup is based in Boston, MA, to manipulate bacteria to produce anything, from drugs to perfume. Ginkgo Bioworks modifies microorganisms and supplies them to partners for use. In 2019, the company formed a $100 million joint venture with Bayer to modify agricultural use microorganisms.
Bulb (London, UK)
The eco-technology startup uses hydropower plants and farm waste to produce renewable energy.
The startup has gained massive popularity, and it has over 300,000 customers and annual growth of 400%. Bulb attempts to fix everything that is wrong with the current energy suppliers.
Bulb has customers across different sectors, from large hotels, banks to small startups looking for smart energy solutions. The company believes in renewable energy to pay fees for its customers to terminate contracts with traditional energy companies.
Proteus Digital Health
The startup is based in Silicon Valley, and it is a pioneer in digital therapy. Proteus Digital Health has over 450 patents focused on using sensors and apps to monitor drug administration and health status.
One product from Proteus is the “smart tablets,” which have integrated sensors to track how patients take their medication. The smart tablets are capsules consumed, and they send the signals to a web app to report how the patient ingests medication and patient activity. The company filed for bankruptcy in early 2020, but a $15 million deal with Otsuka Pharmaceuticals will save the company.
The Outlook
The biotech industry is one of the rapidly growing sectors aiming to save lives and improve everyday life. It is attractive to investors because of the huge payoffs. Investors looking to go into biotech have enough reasons to find more about biotech companies to invest in 2020.
Video – What is a startup?
Interesting Related Article: “How To Make Use Of Biotechnology Techniques For Your Business“