It's become a well-known fact that investors want to see traction or significant need before they go all-in and bet their money on a new idea.
Having previously worked as a financial advisor, I have seen this firsthand: as an investor, you literally have countless new projects and startups to choose from - as well as increased access to data to help you make the most informed choice. So it might not come as a terrible shock to anyone that the world's most renowned venture capitalists are rallying behind life-saving medical products.
Yes, biotech has become a hot industry for investors lately, which we've seen detailed in recent business news. Most recently, medical giant, Allergan, recently acquired a very small pharmaceutical company called Tobira for up to one billion dollars based on their new treatments for NASH disease.
This story illustrates exactly why biotech companies are so attractive to investors: they tend to stay cost efficient while developing impactful, science-based products, which can be sold for a huge profit.
The added bonus for investors is that they can say they are instrumental in saving lives or changing them for the better. One such example is VBI Vaccines INC. (Nasdaq: VBIV), a company that is developing a vaccine for the Zika virus.
The Zika virus has been so tricky to contain because it is spread through mosquito bites. Those infected generally get a fever or a rash, but where it really gets dangerous is when pregnant women are involved.
These mothers can pass the virus onto their unborn fetus, which can cause debilitating birth defects to the brain or nervous system.
Most recent reports detail that 72 countries and territories have reported evidence of mosquito-borne Zika virus transmission since 2007 and 20 countries or territories have reported microcephaly and other CNS malformations potentially associated with Zika virus infection or suggestive of congenital infection.
This is why the creation of a vaccine is imperative.
VBI has a pipeline of proprietary health technologies, including an eVLP (Enveloped Virus-like Particle), which improves the safety profile and immunogenicity of vaccines by mimicking the natural make-up of viruses.
The scientists at VBI are applying the eVLP Platform in the development of a preventative Zika virus ("Zika") vaccine candidate.
Their exciting breakthroughs have garnered the support of some of top biotech investors including Joseph Edelman of Perceptive Advisors, Robert Nelsen of Arch Ventures, Dr. Phillip Frost of Opko Health, and Dr. Steven Gillis of Arch Ventures (who serves as VBI's Chairman).
This new trend of hyper-focus on biotech is proof that social responsibility is making its mark on business and innovation. Think of all of the great scientific breakthroughs that will be allowed to happen with the proper funding behind them. How many health issues will be solved? How many people will benefit from a higher quality of life? How many lives will be saved?
Of course, spending money to make money is obviously an investor's job and yes, biotech companies are certainly profitable (if you don't believe me, check the latest numbers on NASDAQ).
But for biotech investors, it's often not all about financial gain - it's about leaving a legacy of better health. And that is truly priceless.