As outlined in the 2023 Iowa Bioscience Strategy, BioConnect Iowa has achieved a great deal with current resources. Despite this success, Iowa is failing to take full advantage of the research and development resources available in the state.
The lack of fundable deal flow, as well as the threat posed by the “Valley of Death,” are creating a challenge for innovative success in Iowa.
The Valley of Death refers to the common obstacles to success startups face due to limited resources during early development stages within the startup lifecycle — especially between R&D and commercialization.
To navigate these stages, startups must equip themselves with the proper tools, including funding, market research, early engagement with users and relevant stakeholders, and strong leadership, strategies, and processes.
To help Iowa’s tech-based startups bridge the gap and overcome the valley of death, BioConnect Iowa needs an additional $2 million in operational funding to expand impact and programs, like Iowa G2M, over the next five years. Similarly, securing $8 million in asset funding would provide adequate resources to support necessary fundable deal flow over the next five years.
Without the additional $10 million in funding, Iowa will continue to fall behind fellow Midwest states in terms of venture capital per capita.
With the additional $10 million in funding, BioConnect Iowa can implement missing pieces to expand and accelerate Iowa’s bioscience sector.
InnoVenture Iowa Services will support the advancement of fundable deal flow by expanding BioConnect Iowa’s current Advisory Services program. This will help bridge the gap by offering industry-agnostic resources to keep things moving through the Valley of Death, including assistance with roles related to sales, business development, software development, IT, legal, marketing, and more.
InnoVenture Iowa Studio will work to increase operational, asset, and strategic investment funding while establishing a research-driven studio starting with aligned market need, opportunity and purpose, resources, team, and disciplined venture-building processes.
By targeting specific market opportunities and challenges based on industry needs, traditional venture studios see a stronger return on investment than traditional venture capital investments.
The success of a Venture Studio and Venture Services program requires significant funding upfront.
$400,000 annually x 5 years = $2M total
$1.6M annually x 5 years – $8M total
