Rapid Response: "Be confident enough to show your vulnerability," w/Ken Frazier (Merck/General Catalyst)

Research Investments

Ken Frazier discusses the complexities of investment decisions in scientific research, drawing from his experiences at Merck and General Catalyst. At Merck, investments were substantial and focused on late-stage clinical trials, often requiring patience and persistence, as seen with mRNA technology and immuno-oncology. He emphasizes the importance of knowing when to continue funding and when to stop, based on definitive experiments 1.

The rules of biology aren't that well understood. And so you wanna continue to function, or to continue to invest in things that could produce value. But at the same time, when you've done what you believe is the definitive experiment to test a hypothesis, you don't want to keep paying good money to chase after something that you think is not going to be useful.

--- Ken Frazier

Frazier highlights the need for a balance between patience and resource management in scientific investments.

   

General Catalyst

The investment strategy at General Catalyst differs significantly from Merck, focusing on early-stage businesses and technology. Frazier explains that General Catalyst invests in startups and founders who believe they can change the world, requiring a different approach compared to Merck's late-stage investments. This early-stage focus demands a belief in the potential of new technologies to transform healthcare delivery 1.

It's much earlier that we're focusing in General Catalyst than I was focusing as the CEO of Merck, because my job here was to make really large investments in late-stage programs.

--- Ken Frazier

This shift from late-stage to early-stage investments reflects a broader strategy to foster innovation from the ground up.