Key Takeaways

  • The traditional US biotech capital market is built for "asset sales," where over 90% of companies take an idea from concept to early evidence, then sell it off. Jake Becraft of Strand Therapeutics compares this to real estate development.
  • This short-term mindset prevents the creation of generational companies with bold, long-term platforms, unlike the sustained investment seen in tech giants like Amazon or SpaceX.
  • To build a lasting company, founders need patient capital and must clearly, publicly state their multi-decade vision to attract mission-aligned partners.
  • Becraft's own work with RNA genetic medicine at Strand Therapeutics has shown remarkable results, like a stage 4 melanoma patient's recovery via the abscopal effect, demonstrating the power of persistent, platform-focused investment.

The Short-Term Squeeze in Biotech

Most founders dream of building something enduring. But in US biotech, the system works against that. Jake Becraft, CEO of Strand Therapeutics, pulls no punches. He argues the capital market heavily favors short-term wins over long-term vision.

Becraft says, “The reality of medicine development in the United States...is incredibly swung to the incentivization of making minor steps forward and of doing single things at a time.” He paints a picture of a system that resembles real estate development: “In biotechnology, 90 plus% of companies go, here's an idea. I'm gonna take it from point A to point B...And at point B, I'm going to sell the asset.” This isn't about bringing a product to market; it's about proving a concept and flipping it.

This "asset sale" mentality means investors want quick returns, not years of patient development. Becraft points out that "the capital pools the fundraising environment that is traditional biotech really deeply struggles with the idea of long-term bold idea investment." This makes it nearly impossible for companies to invest continuously in broad platforms that could yield multiple medicines over decades, unlike the way tech companies like Amazon or SpaceX operate.

Beyond the Exit: Building for Generations

So, if the current system rewards short-term thinking, how do you build a company meant to last? Becraft suggests looking beyond immediate profitability and early exits. He wants to create what he calls "platform therapeutics" – companies that build a core technology base capable of spinning out many products over a long period. Think SpaceX building reusable rockets, not just launching one satellite. Or Amazon investing for years in infrastructure before becoming profitable.

At Strand Therapeutics, Becraft is building an RNA genetic medicine platform. He's seen the kind of results long-term thinking can deliver, like a stage 4 melanoma patient achieving full remission through the abscopal effect due to their RNA therapy. This patient's recovery wasn't a quick flip; it was the result of a sustained effort to develop a sophisticated medical platform.

For Becraft, the key is finding people aligned with a bold, long-term mission, not just a quick return on investment. “If you're trying to get the best irr on your dollar between here and next year, I might not be your best bet,” he admits. He is openly seeking patient capital and collaborators who share a vision for a multi-decade journey.

How to Attract Patient Capital

If you're a founder aiming to build a generational company, you need to attract a different kind of investor. Becraft advises founders to clearly and publicly articulate their grand vision. “I think we need to say what we're doing and we need to say it publicly...because it will attract partners...it will remind people who are on this mission with us about what we are building to,” he says.

This isn't just internal pep talk. It's a strategic move to signal your intentions to the market. By loudly declaring your long-term ambitions and platform approach, you filter out investors only interested in quick flips. You invite those rare partners who truly believe in building something bigger than the next funding round.

What to Do With This

This week, refine your investor deck. Cut any language focused on early exits or single-asset sales. Instead, articulate a clear 5-10 year platform vision for your company, detailing how continuous investment unlocks multiple future products or services. Use public channels (like your company blog or LinkedIn) to share this long-term ambition, actively seeking collaborators and patient capital aligned with your multi-decade mission, not just next year's IRR.