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In today’s biotech job market — where competition for people with in-demand experience is fiercer than ever — it’s become critical for biotech startups and venture capitalists to ensure people have a smooth exit when their companies downsize or go under.

Biotech is a notoriously small world, especially in regions like Boston and the Bay Area. If an employee leaves a job with hard feelings or a bad taste in their mouth, it may not be the last time an executive team will see them. And biotech companies often fail — in one recent analysis, more than half of all the studied biotech startups failed.

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