What's the appeal of investing in relatively small and little-known corporations? Though these businesses come with heightened risks, getting in on the ground floor can potentially be lucrative over the long run if they become successful. Just think: What if you had invested in a massively successful biotech giant like Vertex Pharmaceuticals in its early days?

Let's look at two relatively small biotechs that, if enough goes right, could deliver outsize returns to those who invest now: Editas Medicine (NASDAQ: EDIT) and Recursion Pharmaceuticals (NASDAQ: RXRX).

Editas Medicine has been struggling over the past 18 months. Its market capitalization is just about $680 million, down from more than $3 billion in 2021. The gene-editing specialist had to give up on one of its leading candidates, EDIT-101, a potential therapy for an eye disease called Leber congenital amaurosis 10, at least until it can find a partner with more funds.

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Source Fool.com