🧬 Mike Stadnisky - Thielsen Capital - Part 2
Audio Brief
Show transcript
This episode explores Mike Stadnisky's transition from academia to a startup, offering a robust playbook for business development in the biotech industry.
There are three critical takeaways from this conversation. First, networking and on-the-job learning are paramount for career transitions, particularly from academia to industry. Second, effective business development for startups focuses on creating asymmetric, mutually beneficial partnerships with large corporations by empowering internal champions. Third, startups must embrace versatility and be prepared to perform the majority of the legwork in these corporate collaborations.
For academics moving into industry, active networking and securing informational interviews are far more effective than traditional online applications. Success hinges on making personal connections and demonstrating practical problem-solving skills learned by wearing multiple hats in a startup environment.
Business development is defined as forging strategic partnerships where both parties gain mutual value, often between a high-growth startup and an established corporation. Startups should target large, stable companies, deeply researching their strategic needs through public documents like earnings calls. A successful pitch immediately highlights the mutual value proposition and provides an internal contact with the exact messaging needed to advocate for the partnership to their leadership. Instead of searching for a single decision-maker, identify and cultivate relationships with both technical and business champions who can champion the initiative internally.
Finally, startups must understand their role in these partnerships. They are expected to be highly versatile, learning new skills as needed, from software engineering to product management. In any corporate collaboration, the startup should assume responsibility for building the entire business case and driving the project forward, effectively doing the heavy lifting for both sides.
This conversation provides invaluable strategies for navigating career changes and mastering the nuances of strategic business development in competitive markets.
Episode Overview
- Mike Stadnisky recounts his unconventional transition from an academic post-doc to a multifaceted role at the software company FlowJo, highlighting the power of networking and on-the-job learning.
- The discussion offers a detailed playbook for business development, defining it as the creation of mutually beneficial partnerships, particularly between startups and large corporations.
- Stadnisky provides actionable strategies for startups on how to effectively pitch potential partners, including leading with the mutual value proposition and finding internal champions.
- The episode emphasizes the mindset required for success in a startup environment, from wearing multiple hats to doing the heavy lifting in a corporate partnership.
Key Concepts
- Transition from Academia to Industry: An academic's practical, hands-on experience and proactive networking are more critical for landing an industry role than simply applying for jobs online.
- The Power of Networking: Personal connections and informational interviews are essential for getting a resume seen and are far more effective than cold applications, especially at large companies.
- Versatility in a Startup: Working in a small company requires wearing multiple hats and learning new skills on the job, such as software engineering and product management, to bridge the gap between scientific problems and customer needs.
- Business Development (BD) Defined: BD is the creation of a strategic partnership between two or more parties, often an asymmetric one between a startup and a larger corporation, where both receive mutual benefit from an exchange of assets or value.
- A Startup's BD Playbook: Startups should avoid partnering with other high-risk startups and instead target large, established companies. Success requires deep research into the potential partner's strategy and internal language by studying public documents like earnings calls.
- The Art of the Pitch: A successful pitch should open immediately with the mutual value proposition for both parties, rather than a long technical preamble. The goal is to provide your internal champion with the exact pitch they can use to sell the partnership to their own leadership.
- Finding Internal Champions: The common advice to "find the decision-maker" is flawed in large organizations. The effective strategy is to identify and cultivate relationships with both a technical champion and a business champion who can advocate for the partnership internally.
Quotes
- At 2:17 - "Man, was I so wrong. I was so freaking wrong, Jon. I was so wrong." - Mike Stadnisky expressing his past skepticism about networking and how his perspective has completely changed.
- At 17:59 - "but frankly who gives a shit unless you solve it and you solve it in a way that people can understand." - Stadnisky explains that discovering a scientific problem is not enough; the real value comes from creating a practical, understandable solution for the user.
- At 22:00 - "Startups don't partner with startups, okay?" - Stadnisky advises against startups partnering with each other, comparing it to two toddlers interacting—a high-risk situation where neither party has the resources to de-risk the other.
- At 31:30 - "That is arguably some of the worst advice that's out there now... 'find the decision-maker.'" - Stadnisky argues that in large organizations, there is rarely a single decision-maker, and the key is to find internal 'champions' instead.
- At 37:05 - "If you're doing a group project, that's what business development is, assume that you're on the group project that's made up of five people and you're the one person doing the work. That's being a startup." - Emphasizing that startups must be prepared to do the majority of the legwork when partnering with a larger company.
Takeaways
- For academics transitioning to industry, networking is not optional; it is the most critical activity for getting noticed and securing a role.
- When pitching a large corporation, lead with the mutual value proposition and arm your internal contact with a pitch they can directly use to sell the partnership to their boss.
- Instead of searching for a single "decision-maker," focus on identifying and cultivating relationships with both a technical champion and a business champion to navigate large organizations.
- In a startup-corporate partnership, the startup must do the heavy lifting, including building the business case and driving the project forward for both sides.
