Hey there,
So Buracon is in the plant based meat industry. One of the problems here with BU and actually everyone in the space, is the fact that they were bid up to unsustainable levels. They were bound for a meaningful pullback. It is important to note that this doesn't make them bad companies, just bad stocks - at least in the short term. Let's take a look at BU as an example.
Buracon has a portfolio of patents, it is a true innovator in the space. That is the good thing. The bad thing - it has no proven business model. At its peak earlier this year, investors were paying just over $600M dollar for a company that has generated less than a million dollar in sales. That is just not justifiable - at least in my opinion. In the small cap space, FOMO reigns supreme and investors lose all sight of fundamentals. This is not to say Buracon won't ultimate be successful - i can very well be. However, to justify such a valuation, it would need to post at least $50M in sales and it is nowhere near that. It is akin to early stage bio-tech investing.
Once again, not saying this a is a bad company. In fact, I really like what they are doing and their products do have potential. But at today's price, would I pay $187M for a company on potential only? Hard to digest. For me at least. I'd like to see a little more in terms of hard numbers (revenue) before I jump in. It's actually why I actively avoid early stage biotech as well - its a crapshoot most of the time.
Not sure if this answers your question - but bottom line is how much are you willing to pay to get in early on a company's revenue potential? My risk tolerance is usually waiting for some real revenue generation or at the very least, some insight form the company as to expected revenue targets in light of recent or upcoming commercialization.
Mat