Abstract
How did private US biotech startups of the 1980s - formed with abstract biology concepts drawn from public science - find financing for expensive, long-cycle R&D projects? Drawing upon physical archives, oral history archives, newspaper reports and commentaries by principals, I undertake case studies of the financing experience of three such startups. Although the 1980s are regarded as a major technological turning point featuring pro-innovation public policies and sophisticated financing through venture capital and capital markets, I find that the formal financial system provided only limited, inconsistent support. Instead, it was wealthy individuals, surpluses from stagnating non-related older industries, self-financing from non-core revenues and certain regulatory externalities that played a crucial role in early startup financing. Since fostering high-tech competition has returned to the global center-stage, these findings offer valuable public policy insights.