For many start-up companies, finding and attracting investors can be among the biggest challenges they face as they look to build a sustainable business. In today’s economic environment, while finding the investors is tough, convincing them to take a calculated risk on a start-up may be even more difficult.

A recent article on Portfolio.com provides several tips for entrepreneurs, including how to approach starting a business, what to do for financing, and how to appeal to investors.

Christopher Henney, a biotech pioneer who co-founded three of biotech companies in the Northwest, lists the top five red flags investors should watch for when evaluating possible biotech investments.

When it comes to starting and building a life science company, founders and early employees are often focused exclusively on research and development and the next round of funding. They have a firm understanding of their product vision, what that product will do, who it will help and the market they are trying to reach. Unfortunately, few understand the importance, effort and costs associated with commercialization, or getting a finished product to market. All too often, they approach the commercialization process with a false sense of confidence, taking the Field of Dreams approach, “If I build it, they will come.”