You would think that the online hair loss community would be thrilled to get the news that the baldness inspired biotech startup, Follica Inc., raised another $7.5 million in equity financing. You would also think that with a total of $13 million raised by the company in its series B round of funding, that the public would understand that something good is happening here.
Well think again. While it’s no secret that emotions run high for many active readers and posters in our community, some of the more emotional and vocal members are sharply criticizing Follica Inc. and its partners for attempting to keep their business plan and progress close to their collective vest.
No matter how desperate we are as hair loss sufferers, it’s important to understand that any organization that is legitimately involved in the race to effectively treat or cure hair loss has an obligation to its investors to maintain a certain level of knowledge management. The implication of sharing proprietary information or trade secrets with the media and the general public can be profound. To be candid, providing information for the sake of creating a consumer buzz could possibly jeopardize the long term development and success of the treatment.
Follica, Inc. is moving forward, and last week’s news is a positive step which should not be underestimated. Take it for what it is.
Daphne Zohar, Follica, Inc. co-founder, and managing director at PureTech Ventures, discusses the business of hair:
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