This WSJ article was about electric-vehicle startups, but what drew my attention was, of course, biotech counterparts. The green circles in this infographics represent biotechnology companies that completed public listings with minimal or no revenue. This year, eleven biotech startups went public with their market capitalization at listing between $1B and $5B.
How could investors evaluate the companies when they have no product and revenue? When the results from the clinical trials are years away and nobody knows whether FDA would approve the drugs developed by a company, what do investors look at before making their decisions? Uncertainty is inherent in scientific research and investors don't have crystal balls.
What in science do they pay attention to?