While other areas of high technology categorically take a B2B or B2C approach to marketing, Braintech doesn’t quite fit the common rubric. Consider the identity of your customers (the who) and the means by which they’re going to pay for your product (the how) – it’s plain to see that neurotechnology is in a class of its own.
Resolving the who and how issues at the very early stages of development is critical, because even though achieving scientific validation is fantastic – proving something works doesn’t in and of itself mean that it can be commercialized.
Imaging, cranial stimulation, implant technologies, cranial surface measurements, cell therapy and brain chemistry pharmaceuticals are some of the current technologies available on the market, and for the most part are used in medical institutions, specialized clinics, universities and research centers, and ultimately paid for by the insurance companies.
If you’re planning to raise capital for your company, it is super-important to understand who your potential client base is and how the market dynamics work – otherwise you’ll find it super-impossible to finance your project.
Developing tools that enhance human emotional, cognitive and sensory performance and serve as the new frontier in medicine is a monumental challenge of Nobel Prize proportion.
But in spite of the tremendous effect neurotechnology has on our lives, venture capital funds and angels are traditionally averse to Braintech investing due to the lengthy development process and the high risks involved.
While internet companies may go from concept to market within a year or two, advances in neurotechnology can span a decade, and all that time must rely on outside sources of funding in order to exist.
In 2010 McKinsey & Company conducted an analysis of the Israeli brain research and technology landscape at the request of President Shimon Peres, who envisioned an initiative to launch Israel on a journey to become the world leader in neurotechnology.
Among its recommendations, the McKinsey report indicated that Israel is uniquely positioned to develop leadership in two areas of brain communication: the Brain Machine Interface (BMI) and therapeutic neuro-stimulation devices.
Israel Brain Technologies (IBT) was founded as a nonprofit organization in 2011 to realize the vision of President Peres. Since its inception IBT has built a unique international Braintech network, holds periodical meetups, hosted an international Braintech conference, distributed valuable prizes for innovation, incorporated the Braingels Club (a Braintech investors’ network), and don’t forget the first ever Brain Hackathon.
In addition, a month ago IBT ended its inaugural launchpad program named Brainnovations and IBT is accepting applications for the 2nd cycle.
Brainnovations is a neurotechnology focused business accelerator, the first of its kind in the world. Eight teams of Braintech entrepreneurs participated in the 1st cycle of Brainnovations, which ran from October 2015 until mid-February 2016.
The inspiring Brainnovations participants sat through presentations by industry leaders and worked on advancing their ideas together with the program’s prestigious mentors. Google Campus Tel Aviv was our host.
Many are the legal aspects emerging companies need to address in general and in the life sciences arena in particular, where regulatory issues intertwine with complex business models. Competitive analysis, IP roadmaps, activity P&L, regulatory compliance, commercialization obstacles and industry specific business plans are but some of the topics that were covered at Brainnovations to help the amazing entrepreneurs prepare for presenting to investors.
I have had the pleasure of working with IBT founders, management and volunteers since its inception. They are an amazing group of people focused on the cause, and it’s extremely exciting to see this agenda progress. In a way, Brainnovations is the culmination of IBT’s activities, by reaching out to the industry and academia, selecting the participating projects out of many that have applied, and pushing these projects to reach their business goals.
This is an exciting time to be part of the Braintech scene, and whether you are a neuroscientist, VC partner, or otherwise involved with or interested in the emerging companies ecosystem, I encourage you to keep tuned – as breaking news is sure to follow.
Einat Katzenell
offers strategic and practical advice to hi-tech, life sciences and biotechnology entrepreneurs, investors, early-stage and mature companies, academic institutions and business ventures, and is widely regarded an industry insider and a leader in her field.
einat@kdlaw.co.il +972.9.9500555 LinkedIn
DISCLAIMER: Blog posts are not designed to provide legal advice or create a lawyer-client relationship. You should not take action based on this content.