LOCATION

A startup may be highly dependent on consultants, scientific advisors, investors, and part-time employees and should consider locations where these resources may be easily accessed. Just as the high tech companies in the 1980's preferred to be along the Route 128 belt in Massachusetts or in California's Silicon Valley, the biotech industry has similar epicenters in Massachusetts, Southern California, and North Carolina. What makes these epicenters ideal for emerging technology-oriented companies is that they offer close proximity to exceptional universities, venture capital firms, and numerous businesses that provide services every company needs (e.g. law and accounting firms,), along with public transportation, hotels, and access to major airports.

In Massachusetts, biotech startups want to be in Cambridge, near Harvard, MIT, other biotech companies, and Boston's financial center. California companies may choose San Francisco or San Diego for the same reasons. As companies mature and become more self-sufficient, they may relocate operations from the epicenters to regions where real estate is considerably less expensive.

REGULATION

A biotechnology company with plans to conduct typical biomedical research on its premises must obtain 10-15 different permits before it can begin operating. Many of these include authorization from the city or town to use hazardous chemicals and radioactive materials, perform animal research studies, and operate critical equipment such as fume hoods, emergency generators, and waste treatment systems. Not all towns are familiar or comfortable with the health & safety aspects of biotechnology research. Some may entrust its regulation to the local Board of Health, which, unfamiliar with how biotech companies operate, may not be prepared to efficiently handle this responsibility. However, once one company has successfully located in a community, it becomes easier for other companies to follow suit.

Established biotech epicenters have already developed well-defined workable regulations, and some even have full-time local agencies focused on ensuring that permits and licenses are issued efficiently. Cities and towns with a well defined regulatory framework will allow companies to flourish while protecting the public health of the community. Therefore, a town's level of comfort and experience with biotech should factor into a company's choice of location.

BROKERS

A biotech company should secure the services of a real estate broker to assist in evaluating real estate options and even negotiating a lease. In the Cambridge / Boston area for example, only a handful of real estate brokers specialize in biotechnology and have the resources to locate all available space. The landlord pays the broker's fee so companies are free to use the services of as many brokers as they like. Before representing a company, a good broker may want proof that the company is well financed or is, at least, backed by credible investors.