Many scientists, professors, and lab managers are exploring opportunities to start their own businesses. The chance to turn a new idea into innovation is exciting, but creative science requires lab space that supports the work. Traditional lab space is expensive and inflexible. New and small businesses need space that is flexible, transparent, and adaptable, allowing them to focus on science rather than facilities.
To learn more about different options and opportunities around lab spaces for small companies, we talked with David Seddon (DS), co-founder, and Yasmin Khan-Osborne (YKO), asset manager of journey.
Q: What considerations should science and technology start-ups and smaller organizations take when making their lab space decisions, from a technical, logistical, and contractual perspective?
YKO: Start by being clear on what you really need for your science. Many early-stage companies can do their work in relatively standard CL1 or CL2 labs. Don’t be persuaded into paying for higher specifications that aren’t necessary—it only adds cost and limits your runway.
From a contractual perspective, flexibility is vital. Start-ups rarely grow in a straight line, so being able to rent from a single bench up to a lab suite for 20 staff all in one facility, and to adjust as you go, brings stability to companies who can stay focused on their science instead of having to move facilities often. Look for contracts that are short, simple, and transparent and provide you with this type of flexibility.
DS: And there are some non-negotiables. Choose a lab that’s already fitted out. You don’t want to spend precious capital on kitting out a space that you will grow out of quickly. Likewise, access to core shared equipment like autoclaves, glasswashers, freezers, and water purifiers is also critical so you don’t have to invest in your own.
For many companies, location is another key factor to consider: urban sites keep you close to universities, investors, and amenities and often help attract talent, while making commuting easier for staff. Finally, don’t assume a five-year lease is the norm. Challenge landlords on lease length and the right partners will work with your funding horizons.
Q: What are some novel “nice to haves” that you’ve seen recently?
YKO: Conference and event space. We’re fortunate to have a room that can hold 50 people and an atrium used for eating and informally for gatherings. What many start-ups don’t realize is how valuable that can be. For example, it means that companies can host their quarterly board meetings on-site, and their investors can walk through the labs and see the science in action. This can create a powerful impression.
Q: What are the risks for start-ups when choosing their lab space?
YKO: The biggest mistake is overcommitting. I’ve seen companies take on more space than they need, expecting growth, and then struggle when things don’t go to plan. Downtime is another issue; moving labs can completely derail progress and lead to longer than expected downtime. Choosing flexible space that lets you up- and down-scale within the building avoids both problems.
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DS: Another common mistake is underestimating hidden costs. Service charges, fluctuating insurance premiums, or badly managed utility contracts can all add up. That’s why we stress transparent, all-inclusive leases. And don’t underestimate how much time it takes to manage a space. A managed incubator helps de-risk the operational side, giving you back time to focus on your science.
Q: How can well-designed and managed lab spaces help facilitate and support a new lab’s growth?
YKO: Design flexibility is key. Look for moveable benching that can be reconfigured as your needs change, and make sure power is available throughout the space so you can rearrange equipment without major disruption. On the management side, simple, short leases help reduce legal costs.
Q: How can new lab operators effectively prioritize the needs of start-ups?
DS: It comes down to a few essentials: fitted space ready from day one, the right level of shared equipment, meeting rooms, flexible leases, transparent all-inclusive pricing, and easy access to the local ecosystem.
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YKO: And providing true start-up scale spaces. Start-up buildings need to cater to single founders through to more established companies. However many “start-up” facilities are built with suite sizes for scaling companies leaving few options for early-stage founders to start their ventures. It’s also worth looking for operators who build community and offer access to professional networks, from HR advice to legal support, because those softer services can be as valuable as the lab infrastructure itself when it comes to advancing a company.
Q: What trends are you seeing in lab infrastructure, and what do you expect to see over the coming two to three years?
YKO: AI is reshaping biotech. That means some companies will need smaller wet labs and larger office areas for computational work. I also see teams becoming increasingly international. We already have companies splitting work between the US, UK, and Asia, so they need short-term, flexible space for visiting staff and investors.
DS: In line with the gaining traction of AI, power and data capacity are also growing needs. At our new campus, we've upgraded the power to the maximum amount that we possibly can. We now have more power available than we need based on today's requirements. But those requirements might change over the next three to five years. For data, we have two internet service providers for resilience. We deliberately build more capacity than we need today, because no one can predict exactly how demands will evolve, and future-proofing is essential.
For start-ups and small businesses, lab space decisions can make or break their success. It is critical for new businesses to develop an understanding of what they need, how fast they might grow, and what relationships they need to increase their chances for success. Once these factors are understood, companies can make more informed infrastructure decisions. Ultimately, by focusing on what is needed and avoiding common lab lease pitfalls, companies give themselves the best chance to grow.
