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Dec 20th, 2011, 12:21 PM
#7
Re: biotech stuff 60 - 80M
Not for a biotech startup... there's a lot of costs involved... especially in equipment... you just don't pop off down to your local electronics store and pick up electron microscopes or gas spectromitors... there's a couple $Mil right there. TWO employees? At a minimum you're going to have 5 scientists, CEO, President, some kind of VP, a couple of secretaries, and a janitor. The janitor you can get at minimum wage, the secretaries are going to need a little more, the executives will command a high salary, and the scientists aren't going to be working for peanuts... Brazilian nuts maybe, but certainly not peanuts. Right there you've burned through probably close to $10M in the first year alone... and that may not even cover operational costs (utilities, rent, etc) ... rent... odds are you're going to need a specialized building with security (security! I forgot about the small army of rent-a-cops needed, 3-per shift, 3 shifts, that's 9, plus they needs days off, so rotating... 12-15) which is going to be another few million... So even at a conservative $5M for construction, we now have burned $15M .... and we haven't even started doing anything yet.
-tg
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