The House Brazeryen: 06DEC2022 🐉
All your base are belong to us 🛸
Gm Brazeryens. This issue may or may not have largely been written by AI.
[Welcome to Issue Number 20 of The House Brazeryen, where we break down the latest Brazen Bio, Brazen Capital, and bio-startup-related news for you fortnightly, in roughly 5 minutes.]
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BRAZEN AI: A Chat with GTP3 About Bio
Instagram is absolutely laden with Lensa AI-generated selfies and portraits rn. This inspired us to sit down with GPT3 (text-davinci-003) from OpenAI for 10 seconds to discuss all things biotech.
Why is biotechnology venture capital broken?
Biotechnology venture capital is broken because of a number of factors.
Biotechnology is a risky and expensive investment due to the long timeline for drug development, which can take up to 10 years or more. This limits the number of investors willing to take the risk, and often the ones that do are not experienced in the field. [lol]
The industry is highly regulated, which adds costs and complexity.
The market for biotechnology products is often small and specialized, limiting the potential return on investment. [?!?!?!]
There is a lack of liquidity in the biotech venture capital sector, meaning that investors may have difficulty converting their holdings into cash.
Is AI going to disrupt biotechnology?
AI is poised to disrupt biotechnology by making data-driven decisions and predictions more accurate and efficient.
AI can be used to analyze large datasets to identify patterns and correlations that can be exploited to develop new drugs or treatments.
AI can also be used to create sophisticated models of biological systems that can be used to simulate and predict the effects of drug candidates. This will allow researchers to quickly identify and test promising candidates without the need for expensive and time-consuming animal trials.
Additionally, AI can be used to optimize drug design and production, leading to faster and more cost-effective development of new medicines.
How could biotechnology leverage blockchain technology?
Blockchain technology has the potential to be leveraged in a number of ways in the field of biotechnology. Some potential applications of blockchain in biotechnology include: [these are actually spot on]
Tracking and tracing biological materials: Blockchain could be used to create a tamper-proof record of the origin, movement, and processing of biological materials, such as cells, tissues, and organs. This would enable biotechnology companies to maintain a secure and transparent record of the provenance of these materials, which could be important for ensuring their quality and safety.
Securing and managing access to data: Blockchain could be used to securely and transparently manage access to data in biotechnology research. For example, a blockchain-based system could be used to grant and revoke access to research data based on specific rules and criteria, ensuring that only authorized individuals have access to sensitive data.
Protecting intellectual property: Blockchain could be used to create a secure and transparent record of ownership and licensing of intellectual property in biotechnology. For example, a biotech company could use a blockchain-based system to track ownership and licensing of its patents, ensuring that it receives proper credit and compensation for its innovations.
BRAZEN BREAKDOWN
Considering these outputs were received within seconds, these are scary on point.
In conclusion, we asked chatGPT3 to “write a viral tweet about biotech”:
"Just discovered a groundbreaking new cancer treatment developed by a team of brilliant biotech scientists! This is the future of medicine #biotech #cancerresearch"
[note from Shawn: that shit works lol]
IRL ALPHA: A Very BRZN Holiday Party!
You are cordially invited to a biotechnology holiday party in Los Angeles! This event is specifically for graduate students who are interested in pursuing careers in the biotechnology industry.
The party will be held this week at Brazen House. There will be food, drinks, and networking opportunities with industry professionals.
BRAZEN BREAKDOWN
Please RSVP to confirm your attendance. We look forward to seeing you there!
[Apologies, this was all AI talking. Get the real alpha from the Eventbrite page 😭.]
VC CORNER: License To Kill?
Contributed by Scott Alpizar, PhD (or is it?) — A few months ago I wrote about how the process of spinning out science from universities is broken, and one of the reasons why was the license agreement—both the time it can take to get one and some of the terms within it.
License agreements allow a startup to gain access to the university’s technology to commercialize it. But universities can take advantage of a founder who’s never negotiated a license before. This can lead to aggressive terms that make it more difficult for your startup to be successful… or can even kill it.
Well, now there’s hope that this will change. The NVCA recently released a Model University Biotech Licensing Term Sheet to help streamline license negotiations. It’s even been endorsed by prominent universities and VCs!
But this only works if universities are willing to adopt this model term sheet. That’s not guaranteed, so you should know what to look for during negotiations. Let’s break it down!
BRAZEN BREAKDOWN
Economic/Financial Terms. It’s all about the money! There are a lot of financial terms (issue fees, royalties, milestone fees, etc.), but there’s really no way around them. If you can, try to keep them low or defer them until you’ve raised money or are generating revenue.
Rights to Improvements. You’ll likely also owe royalties on any (specifically defined) improvements you make. But have this reviewed by a patent lawyer if you can—you’re off the hook if you have something completely novel.
Sublicensing. Be wary of a ‘pass-through’ royalty structure. This impacts how you negotiate a sublicense and restricts the income your startup receives since most goes directly to the university. Follow the model here!
Equity. This is one where I disagree with the model. Universities don’t usually pay for their equity, so it isn’t fair for them to remain whole when the founders—who put in all of the work—are disproportionately penalized.
This was only a very high-level summary—you’ll still need to do your research to be prepared! In the end, the model term sheet is only one small step towards solving the problem—you’ll need to work with the university. Nobody benefits from the technology sitting at the university (and your company is likely no good without the technology), so you may have to cede a few things as a tradeoff for having the rights to commercializing it.
RESPONSES FROM GTP3
Is the solution to university technology transfer to standardize a term sheet to streamline license negotiations?
Standardizing a term sheet for technology transfer agreements between universities and the private sector could potentially streamline the licensing negotiation process.
A term sheet is a document that outlines the key terms and conditions of a proposed agreement, and can help to ensure that both parties have a clear understanding of their rights and obligations under the agreement. By standardizing the term sheet, universities and private companies could have a common starting point for their negotiations, which could help to reduce the time and resources required to reach an agreement.
However, it is important to note that standardizing a term sheet is not a silver bullet and there may be other challenges and obstacles to technology transfer that need to be addressed. Additionally, the specific needs and goals of each technology transfer agreement may vary, so a one-size-fits-all approach may not always be the best solution.
What are the most important terms to consider when negotiating technology transfer licenses with your university?
When negotiating technology transfer licenses with your university, there are several key terms to consider. Some of the most important ones include the scope of the license (i.e., which rights are being licensed and to what extent), the term of the license (i.e., how long the license will last), the exclusivity of the license (i.e., whether the university can license the technology to other parties), the royalty rates and payment terms, the assignment and transfer provisions, and the indemnification and liability provisions. It is also important to consider any additional terms or conditions that may be specific to the technology being licensed, as well as any legal or regulatory requirements that may apply to the license.
Write a haiku about university technology transfer.
From the science laboratory
Innovations come to life
Technology blooms
[This violates the 5-7-5 structure, but a decent effort. <slow clap>]
😋 Brazen Snax
🩸 It is still a viable scam to pitch—verbatim—the Theranos biz plan
💩 Eating bugs out of someone else’s poop for health now FDA approved
✍🏽 Online integrity hub is a proprietary biomarker array for fraudulent papers
📊 Racism in graduate school survey results are… about as expected
🦠 The shocking aging effects of severe COVID on the brain
📚 Vagina Obscura: one of 12 favorite science books of 2022
💰 Racial disparities in NSF funding: Asians at the bottom?!?
⏰ TikTokCrak: who knew removing a stuck ring on your finger was so satisfying
🔪 Carveout
When Women Lead by Julia Boorstin is a book that is both a fantastic resource as well as laden with inspiring stories from top women in business. Enthusiastically recommend!
🙏🏽 A Dose of Gratitude
We are grateful for the World of Women Community (WoW). Shawn was nominated for a WoW Award for Community Building and attended the WoW Gala in Miami Beach last week as a VIP guest. As you know, we proudly use WoW IP in our Brazen Capital logo.
🙃 Brazen Meme
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