Let’s talk about a number that haunts every biotech startup founder: 10%.
Many incubators and accelerators take 10% equity for providing lab space, mentorship and connections. Ten percent of your future funding, your future milestones, your future exit, gone before you even start your first experiment.
And that 10% grows over time. With each funding round, that small percentage adds up to millions that could have been used to advance your science.
At BADASS Labs, we say no.
The equity problem with biotech incubators
The biotech incubator model is simple. You need a lab, a lab bench, lab infrastructure, etc., and you can’t build a building on your own. So, you go to an incubator that provides all of that and takes equity in return. Some incubators charge 5%. Some want 7-10%. And some want even more.
They’ll tell you it’s aligned, since they win if you win. But even if they don’t contribute significantly to your success, they’ll still get paid.
It’s not just the equity that’s the problem. It’s the fact that you’re giving away equity to an incubator, seed investors, and Series A investors. And your total equity can quickly fall below 20%. That’s not aligned. That’s a tax.
The nonprofit advantage: Science, equity-free
So why is BADASS Labs a nonprofit?
Founder David Kiewlich spent 18 months trying to find lab space as a 6x biotech entrepreneur and PhD in Cell & Developmental Biology from UC Davis and Harvard. Clearly, if a scientist with this much experience couldn’t find a place for his science, the system is broken.
BADASS Labs is a 501(c)(3) nonprofit and doesn’t take any equity. We don’t have shareholders demanding returns. We don’t have venture capital demanding an exit. All we care about is helping scientists develop the next big thing and making sure they retain ownership of what they create.
Zero equity. No IP claims. No fine print.
You bring the science, we’ll give you the resources, and you’ll retain ownership of your company.
How zero equity works in practice
Let’s look at an example. Say you’re a biotech startup that raises a $3M seed round, followed by a $15M Series A round and a $50M Series B round.
If you join an incubator that takes 8% equity, you’ll end up with ~$12M in equity after the Series B. Startup B signs up with BADASS Labs, paying a flat fee instead of giving up ownership. This same value remains in the pockets of the founders and investors who took the risk.
The gap isn’t small. It’s the creation of new wealth by the people who actually created the business.
What About the Support?
A question many ask is: if BADASS Labs doesn’t take equity, why would they offer great support?
It’s our mission.
Members get world-class wet lab and office infrastructure, including BSL-2 lab space, cell culture suites, biosafety cabinets, centrifuges, flow cytometers, real-time PCR systems, cold storage, and 24/7 open access. No reservation system. No restricted hours.
In addition to infrastructure, members also receive:
- Business development counsel from seasoned biotech entrepreneurs
- Regulatory and compliance assistance
- Fundraising strategy and investor outreach
- Networking with founders, advisors, and industry players
- Workshops on a variety of topics such as IP strategy and IND applications
- Mentorship from Dr. Kiewlich, with over 28 years of biotech experience, mainly focused on oncology and cell-based therapies
All of this is part of a flat-fee membership, with no premium level and no hidden costs.
The Results Are Clear: 89-95% Success Rate, $900M+ Raised
Biotech is notoriously unforgiving. The typical industry success rate is about 1 in 10 for startups.
BADASS Labs aims to improve that statistic.
Member companies achieve an 89–95% success rate, and have raised more than $900M combined.
How? By reducing the number of barriers founders face and shifting how they spend their time. Rather than worry about getting lab access or defending their equity against unnecessary dilution, founders can focus on doing science.
The nonprofit structure is not a handout. It is a strategy to minimize financial obstacles and allow innovation to flourish.
“Succeed or Learn, There Is No Fail”
That ethos permeates everything we do.
Equity-staked incubators have incentives tied to money and time. This can skew strategic choices ahead of when the science is prepared.
The nonprofit, non-equity model eliminates these conflicts of interest. There is no rush for an exit or an accelerated timeline. We want founders to create good science, make smart choices, and learn from their mistakes.
Companies remain in the incubator as long as necessary. The shortest length of stay is 3 months. There is no forced graduation or deadline.
The Equity Model Leaves People Behind
Finally, the equity model impacts the types of companies that are selected.
Incubators that consider potential financial return will tend to lean toward companies with higher likelihood of a fast exit, or founders with access to investors. Many capable scientists never get the chance. We’re a mission-driven nonprofit, and we evaluate founders according to the caliber of their science, the ambition of their vision, and the dedication they bring to transformative science.
That’s why we intentionally open doors to women, people of color, LGBTQIA+ scientists, first-time founders, and other marginalized groups—because more diverse research means better science.
“Kindness should be the main factor for everything,” Dr. Kiewlich says.
Two Locations, Infinite Opportunity
BADASS Labs is located in Alameda, CA, and expanding to Salt Lake City.
Our centers help startups and companies in oncology, cell therapy, gene therapy, AAV manufacturing, diagnostics, climate tech, battery materials, carbon capture, biofuels, sustainable biomanufacturing, and beyond.
No matter what you’re building, you’ll find the tools and the team to go further and faster.
The Bottom Line: Your Company Should Remain Your Company
You shouldn’t lose ownership just to use a lab.
Incubators were built in an era when lab space was hard to come by and founders had few options. Nonprofit, zero-equity models show that there’s another way.
BADASS Labs offers state-of-the-art facilities and flat-fee pricing, zero equity, and no IP claims. That approach is working: an 89–95% success rate, over $900 million raised by member companies, and a rising community of founders creating the next generation of medical, biotech, and climate tech solutions on their own terms.
It’s not a question of whether the zero-equity model works. The numbers already tell us.
It’s about whether you’re willing to continue giving up the one thing you have that matters most.
Interested in joining BADASS Labs? Tour our Alameda center, meet our community, or apply for lab space. Your science deserves a place where it won’t cost you your company.
FAQ
Does BADASS Labs take zero equity and make no IP claims? Yes. BADASS Labs takes no equity and makes no IP claims. You retain all your ideas, patents, and equity.
How does a nonprofit sustain itself? Through flat-fee membership, grants, donations, partnerships, and its nonprofit mission—not equity in member companies.
What do I get when I become a member? 24/7 access to BSL-2 laboratories, specialized equipment, office space, business development assistance, regulatory advice, fundraising strategies, mentorship, and educational programming.
How long can I stay? No required graduation date. Companies may remain indefinitely after a 3-month minimum commitment.
What kinds of companies work with BADASS Labs? We work with cell therapy, gene therapy, oncology, AAV manufacturing, diagnostics, climate tech, sustainable biomanufacturing, and other emerging biotech sectors, at any stage from pre-seed to Series B.