Are BioStartUps in a Funding/Innovation Rut?

At the BioStartUps Founders & Investors Forum 2025, held on August 1, 2025 at the CIDCO Exhibition Centre in Vashi, Navi Mumbai, biotech industry stalwarts deliberated on the country's innovation and startup ecosystem.

- Sanjiv Das

While exceptional support to biotech startups is already being provided by bioincubators across various states in the country, there is a need to establish incubators in places where the surrounding ecosystem can further support the startup growth. Mechanisms are also required to be developed for industry-academia collaboration to purely focus on commercialisation, along with establishment of strategic funds for biotech ventures to succeed. Experts at the forum also highlighted the disparities between research institutions and industrial zones in terms of infrastructure and talent access, and how these elements can be co-located to create a win-win situation for the Indian biotech sector. Moreover, a few industry experts observed that startups need not just increased, steady inflow of investments but also idea validation that actually addresses real problems.

With India's bioeconomy projected to reach $300 billion by 2030, the role of the biotechnology startup community, supported by the bioincubators, is particularly instrumental. While Institutions like the Department of Biotechnology (DBT) and the Biotechnology Industry Research Assistance Council (BIRAC) have nurtured the evolution of biotech startups, it is absolutely essential to address challenges that could hinder the progress of these startups.

For instance, while early-stage investors are willing to fund and nurture the biotech startups, the lack of growth-stage capital in India is a major hurdle. Without larger funding pools, we risk losing promising companies to overseas markets through acquisitions or relocations. On the other hand, we see a lot of investors-based activity taking place only in Tier-I cities, while innovations emerging from startups based out of Tier-II or III cities are missing out on opportunities.