By Dr. Lawrence Jones II

A biotech startup is a company that focuses on developing and applying biotechnology to create new products, services, or technologies, typically in the fields of healthcare, agriculture, environmental sustainability, or industrial applications. These startups are generally small, innovative companies that bring scientific breakthroughs to market, often intending to disrupt established industries.

My observation of a biotech startup often includes:

1. Innovation: Biotech startups often work on cutting-edge scientific research or develop new methods to solve problems in biology, medicine, or environmental science.
2. Technology-driven: A biotech startup's core usually uses advanced technology or scientific processes. This can involve anything from gene editing (e.g., CRISPR) to synthetic biology, bioinformatics, or new drug delivery methods.
3. High Risk and High Reward: Biotechnology startups typically face uncertain outcomes. Their innovations require years of research and development and often depend on regulatory approvals (such as the FDA for medical products).
4. Investment: Biotech startups often seek venture capital, angel investors, or grants to fund their research and development, as biotech ventures can require significant upfront investment before any products hit the market.
5. Interdisciplinary Expertise: These companies often have teams of experts, including biologists, chemists, engineers, medical professionals, and business managers, who collaborate to translate scientific discoveries into real-world applications.

Examples of biotech startups include companies developing new medicines, creating sustainable agricultural solutions, producing bio-based materials, or developing technologies to improve environmental health.

Years ago, I created an original metaphor influenced by Morgan's metaphors of organizational dysfunction (Morgan, 2008) (Jones, 2020). My proposed new metaphor includes some corporate examples. The metaphor is a Pygmalion Mirage. Pygmalion (1968) “In Greek mythology, Pygmalion was a sculptor that became fascinated with his work that he fantasized it was a living and breathing masterpiece.” A Pygmalion Mirage is a situation where an organization's culture becomes overly confident in its perception of a problem, often due to the leader's influence. The mirage can lead to the leader experiencing an illusion of success.

A Pygmalion Mirage in the context of biotechnology startup companies refers to a phenomenon where high expectations or inflated perceptions of a company's potential by the leadership team can lead to unrealistically positive beliefs about its success, even when it is foundations or actual achievements might not justify them. The term draws from the "Pygmalion effect," a psychological principle suggesting that higher expectations increase performance (Rosenthal and Jacobson (1968). However, in the "mirage" (Mirage, 2020) aspect, these expectations are based on distorted or idealized perceptions, often disconnected from the reality of the company's capabilities, research, or financial stability.

In the context of biotechnology startups, this could manifest in several ways:

1. Overhyped Products or Technologies: A biotech company may be perceived as having the next big breakthrough or revolutionary treatment, but in reality, the science behind the product is still unproven, or there are significant hurdles in the development process that are not immediately apparent to investors, partners, or the public. These false perceptions can generate hype and attract capital that the product's true potential might not justify.
2. Investment FOMO (Fear of Missing Out): Biotechnology startups often attract venture capitalists, angel investors, and other stakeholders who may be swept up in the hype surrounding the company of what the company could become, investors may feel compelled to participate, driven by a fear of missing out on the next big biotech success without solid data or proof of concept.
3. Media Amplification: Media outlets may amplify the company's narrative by focusing on sensational aspects of its technology or team, inflating public and investor expectations. This can create a "mirage" where everyone involved believes that the company is poised for enormous success when, in reality, it may still be dealing with fundamental issues like regulatory approval, clinical trial results, or financial instability.
4. Founder of Team Expectations: The leaders of biotech startups, particularly visionary founders, may begin to believe in their narrative of success, sometimes to the point where they ignore the risks or challenges (Hamm and Symonds (2006, November 26). This self-reinforcing belief can result in overconfidence, which distorts decision-making and can lead to poor choices—whether in product development, hiring, or scaling.
5. Market Trends and Herd Mentality: The biotech industry is often influenced by trends—such as the popularity of gene editing, personalized medicine, or immunotherapy. A startup that aligns with these trends may be seen as a potential leader in the field, even though it may not have the infrastructure or proven results to live up to those projections. This creates a "mirage" where the perceived opportunity is much greater than the actual reality of what the startup can deliver.

Consequences of a Pygmalion Mirage in Biotech Startups:

• Failure to Meet Expectations: Overblown expectations can lead to investors and stakeholders may losing confidence. I have seen first hand that this outcome can lead to crashes in valuations, layoffs, or the failure to secure further funding.
• Resource Drain: Because of overconfidence, companies may waste time, energy, and resources on initiatives that were never feasible in the first place, leading to unsustainable growth.
• Delayed Innovations: Focusing on unrealistic projections can divert attention from more viable, smaller-scale innovations or practical solutions that might be more successful in the long term.

Mitigating the Mirage:

• Focus on Clear Milestones: Setting realistic, science-backed milestones and emphasizing transparency can help mitigate the overhype.
• Cautious Expectations: Encouraging a balanced view of what can be achieved and understanding the long, uncertain road biotech companies often face can prevent companies from falling into the trap of chasing mirages.
• Realistic Valuations: Ensuring authentic company valuations are based on solid data, regulatory approvals, and the technology's true potential rather than speculative projections can prevent unrealistic expectations.

In short, a Pygmalion Mirage in biotech startups could result in companies building more on the perception of their value than their actual achievements or potential, leading to a risky bubble that might burst if those high expectations are unmet. These consequences and considerations are not just for a startup; any company (even older ones) that does not monitor its performance closely can experience a Pygmalion Mirage.

References:

Hamm, S., & Symonds, W. C. (2006, November 26). Mistakes made on the road to innovation. Retrieved from http://www.bloomberg.com/bw/stories/2006-11-26/mistakes-made-on-the-road-to-innovation

Jones, L. (May 2020). Pygmalion Mirage as an Organizational Metaphor. Organizational Metaphors.

Lewin, A. Y., & Stephens, C. U. (1994). CEO attitudes as determinants of organization design: An integrated model. Organization Studies, 15(2), 183–21

Mirage [Def. 1]. (2020). Merriam-Webster Online. In Merriam-Webster. Retrieved November 26, 2015, from http://www.merriam-webster.com/dictionary/citation

Morgan, G. (2006). Images of organization (3rd ed.). Thousand Oaks, CA: Sage Publications Inc.

Powell, S. (2011). The nexus between ethical corporate marketing, ethical corporate identity and corporate social responsibility. European Journal of Marketing, 45(9/10), 1365-1379.

Pygmalion [Def. 1]. (1968). Merriam-Webster Online. In Merriam-Webster. Retrieved November 26, 2015, from http://www.merriam-webster.com/dictionary/citation

Rosenthal, R., & Jacobson, L. (1968). Pygmalion in the classroom. The Urban Review, 3(1), 16–20.

Tags: Metaphors

by Lawrence Jones II, PhD

Earlier this month, Vice President Kamala Harris urged the white house to make Black maternal health a national priority. Jane (April 17, 2022) reports that last December 2021, Harris hosted the first Maternal Health Day of Action, and she issued a call for change around maternal health, especially for Black families. Although this is monumental, why the special attention to Black families? There has been an increased article reported on Black Maternal health due to the increased likelihood of fatal health outcomes associated with pregnancy. The American Heart Association (February 13, 2019) addresses the pregnancy-related mortality rate of Black Women (regardless of socioeconomic income) and Black Infant Mortality.

Jones (April 23, 2022) “Although we live in a very affluent society, there are still discrepancies in our health care system. Even within the African American communities defined as middle class or upper-middle-class, there are still inadequacies, particularly in the black indigenous and people of color communities in the United States.” Jones also mentions, “patients have to be transparent about their ailments and the side effects of any prescribed medication. Often there are social biases that stem from systemic racial discrimination.”

Lockhart (January 11, 2018) points out that even famous and wealthy tennis star Serena Williams had post-pregnancy life-threatening problems “she frequently coughed due to the embolisms, and the coughs were forceful enough to cause her C-section wound to rupture. When she went in for surgery, doctors found that a hematoma had filled her abdomen due to the blood thinners. A filter was placed into one of her major veins to keep more blood clots from traveling to her lungs. When she finally returned home, Williams needed six weeks of bed rest.”

Black maternal health care begins well before pregnancy. It is vital for health care providers, physicians, and nurses to be extra knowledgeable about and sensitive culturally about the problems in Black maternal health. Genai (April 16, 2022) points out that “Black women are 2-3 times more likely to have fibroids, develop them at younger ages, have bigger fibroids, and have more fibroids, and to have more symptoms by age 35 nearly 50%.”

References:

American Heart Association News (February 13, 2019). Health disparities – even in the face of socioeconomic success – baffle experts. Health disparities – even in the face of socioeconomic success – baffle experts | American Heart Association

Bushak, L. (April 14, 2022). ‘We Love You to Health’ pushes for equitable maternal care for Black women. ‘We Love You to Health’ pushes for equitable maternal care for Black women | Campaign US (campaignlive.com)

Genai, S. (April 16, 2022). Black Women Talk Fibroids, Fertility, and Motherhood. Black Women Talk Fibroids, Fertility, and Motherhood (theroot.com)

Jane, A. (April 17, 2022). VP Harris Urges White House to Make Black Maternal Health A National Priority. VP Harris Urges White House to Make Black Maternal Health A National Priority (yahoo.com)

Jones, L. (April 23, 2022). The State of Black Health; The Narrative Matters med watch. The State of Black Health; The Narrative Matters med watch - The Narrative Matters

Lockhart, P.R. (January 11, 2018). What Serena Williams’s scary childbirth story says about medical treatment of black women. Vox. Serena Williams’s health scare shows how medicine dismisses black women - Vox

Ndugga,N. (April 15, 2022). A Look at Key Maternal and Infant Health Disparities Among Black People. A Look at Key Maternal and Infant Health Disparities Among Black People | KFF

Vantage Point (April 13, 2021). Black women more likely to die from pregnancy-related causes.Black women more likely to die from pregnancy-related causes - VAntage Point

Smith, I. Z., Bentley-Edwards, K. L., El-Amin, S., & Darity Jr, W. (2018). Fighting at birth: eradicating the black-White infant mortality gap. Oakland: Duke University. https://socialequity.duke.edu/wp-content/uploads/2019/12/Eradicating-Black-Infant-Mortality-March-2018.pdf

Tags: Infant Mortality