How to build a strong team with the right expertise and mindset for an aggressive growth journey, while trying to survive the next month, is a challenge that many companies, not least startups is now facing.

In the running up to the third stop of Haeger & Carlsson’s Ticket to Ride Nordics Tour (a seminar series touring the Nordics, aiming to shine light on how to create strong teams for an international growth journey as well as strengthened collaboration between Nordic life science hot spots to that end), this time due for Copenhagen on May 2nd, I had the chance to hear from three individuals that have some advice to give on these matters, ranging from when and how to bring in outside expertise to what investors look at when assessing the potential of the team.

Meet Stephan Christgau, Partner at Eir Ventures, Peter Alfvegren, Senior Partner at Anchor Management Consulting, and Sofie Lorentzen, Chief People Officer at BioInnovation Institute (BII).

STEPHAN CHRISTGAU, PARTNER, EIR VENTURES

Tell us what you consider in your assessment of companies to potentially invest in when it comes to the human elements?

“As an investor, when you asses a company, you do a due diligence of the science and commercial potential, but also the people, ranging from the scientific founder, the management team, the BoD, advisory board etc. The team is so important. The investment world is a human business after all.”

The investment world is a human business after all.”

What qualities are you looking for in the people behind the wheels?

“It’s a real balance act of qualities, biotech is not for everyone. It is particularly difficult to be a biotech startup CEO as you have to be able to focus in on very detailed operational stuff as you are not that many in the company, while being able to zoom out and work with the board to provide strategic oversight. The ability of zooming in and zooming out is crucial. Many people from big pharma might have strategic orientation but can’t combine it with the detailed operational competences, whereas someone who is great as a managing CEO might not be able to lift themselves up to provide the strategic vision.”

Personality wise, the kind of people you wish to have in the leadership should be people that know their stuff but at the same time also are a bit humble.”

“Personality wise, the kind of people you wish to have in the leadership should be people that know their stuff but at the same time also are a bit humble, that realize they don’t know everything and will be accepting that someone else is needed to provide with certain expertise, for instance regulatory, CMC etc.”

PETER ALFVEGREN, SENIOR PARTNER, ANCHOR MANAGEMENT CONSULTING

When and how should you turn to outside expertise for parts of your growth journey and what type of functionalities must be in-house?

“Being a young company in an early stage is always challenging, you seldom have all the necessary competences or experiences in place. Most times you need help in setting the plan on how you will achieve your strategy, formulating the most important activities, and in what order.”

You can accelerate your building activities with an experienced external team, but you need to have a receiving organization.”

“This is where external help is very good. It’s like building a house for the first time, you don’t start without a drawing and a plan and experience helping you. It’s in the planning you will be challenged in “what” you are building and “how” it should be built.”

“You can accelerate your building activities with an experienced external team, but you need to have a receiving organization. In essence, it’s important to take help to get the foundation right to achieve operational efficiency and excellence. This is something you seldom have time or competence for in-house from the start. External help can ensure a good start and help you build a strong, receiving organization.”

Seasoned experience does not come for free. Yet, there is no place for mediocre in the core team of a biotech company. Is there any way around this catch 22?

“Your business preparation and planning are crucial, but don’t try to excel at everything all the time. Establish a method where you have different focus per stage and try to keep every step within 3-6 months. Make sure each step is achievable and valuable instead of starting everything at once. That’s just unrealistic.”

Establish a method where you have different focus per stage and try to keep every step within 3-6 months.”

“Also, make sure everyone in the company knows the current key activities and agrees with them. Nothing wastes your money and team morale faster than vague leadership and poor communication.”

What are the most common mistakes that you see in companies relating to the core teams competences or lack of competences that will be costly down the line?

“If you think your team could do it all and know it all, it could be a costly lesson. Re-inventing the wheel is not only expensive, but also exhaustive for the organization. Most young biotech companies are excellent at science, but not so experienced in “implementing” the business operations.”

SOFIE LORENTZEN, CHIEF PEOPLE OFFICER, BIOINNOVATION INSTITUTE

As you work on a daily basis with supporting startup CEOs to build strong teams. Can you share some of the toughest choices and tradeoffs that company management would be ready to face during a growth journey and how do you prepare them for that?

“For sure, the dynamics of the group will be put to the test. Your team will have to take pressure and fight hard, as challenges will be piling up the further you get on that journey.”

With new CEOs, I always talk about how the leadership role is divided into rights and obligations.”

“With new CEOs, I always talk about how the leadership role is divided into rights and obligations. The latter includes being able to make decisions timely. Also the tough ones where you have to accept the uncomfortable feelings that comes with this.”

When BII evaluate companies, what importance do you attribute to the team?

“It is a super important part of what we look at and what investors down the line will consider. A well-functioning team with slightly less good science could be better than a not functioning team and a super good science. For a company to be eligible to BII:s programs, the person who is due to lead the company must show he/she is able to do the leadership task.”

How can you assist with that?

“It varies between the programs we offer how we do it. In our Venture house, we focus a lot on the founders as managers of the team. We support them in building their personal leadership and understanding themselves so that they can make full use of their potential to grow into a leader. The money we provide here is important of course, but the guidance that comes with it is equally important.”

The money we provide here is important of course, but the guidance that comes with it is equally important.”

“In the BioStudio program, which is for super early-stage projects that we scout at universities, we even create a small start-up team within our organization to support the university PI. The purpose being to be able to spin out eventually.”

There is a great deal of uncertainty these days about making it to the next inflection point or not. When financial capital is scarce, human capital often takes the hit. As a company leader, how do you manage to attain loyalty in such circumstances?

“A key to this is being responsible as a leader, creating respectful and supportive working environments where the company values are clear. At BII, we put a lot of emphasis on the community in the house, the physical environment.”

We put a lot of emphasis on the community in the house, the physical environment.”

“I believe that hybrid working has challenged the strong loyalty that often comes with being a small team, working for a big cause. It is easier to detach from the company journey when you do not meet up as much. Also, conflicts are more likely to be avoided when you meet up and get to know each other. Being able to have that chat at the coffee machine matters.”

About the author

Helena Strigård is CEO and Partner of Haeger & Carlsson. Her previous roles include CEO of NorthX Biologics and CEO of SwedenBIO. She is also a recurrent columnist in NLS magazine.