Monday, August 8, 1994
Getting real about competition
Competition is nice, but overly fragmented technology and too many companies competing for a limited pool of funds in a single area can make it hard to get anything done. A couple of years ago, it might have seemed feasible to have five or 10 startups concentrated in signal transduction, for example, but today that's not the case.
These days, there's a premium on pooling resources and avoiding redundancy to give a company the best chance of success.
Idun Pharmaceuticals Inc. and Apoptech Inc., which were to announce their merger today, illustrate the new way of thinking.
Fragmentation of technology is the key issue, said Lawrence Bock, founder of Idun and general partner at Avalon Medical Partners. "We're not in an environment where you're going to get 10 neuroscience startups, for example, going public. That's going to come down by an order of magnitude."
Costa Sevastopoulos, chairman and acting CEO of Idun, and one of the founders of Apoptech, agreed. "Fragmented technology has created the 1,300 companies short of cash