Zyda raised funds primarily from urologists and urogynecologists. These clinician-investors already understood the market need, provided crucial industry connections (like finding a clinical trial investigator), and became influential early prescribers, dramatically accelerating market entry and validation.
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Despite operating in the popular women's health space, Repro Novo's CEO advises founders to pitch investors on tangible commercial opportunities and critical unmet needs. This focus on market gaps and pricing potential is more compelling than simply relying on a sector-specific trend for funding.
In a tough market, fundraising success comes from precision targeting. Luba Greenwood advises skipping the "big 10" pharma and large VCs. Instead, focus on smaller to mid-sized pharma companies hyper-specialized in your therapeutic area and newly-raised, smaller VC funds that are actively deploying capital.
Value-add isn't a pitch deck slide. Truly helpful investors are either former operators who can empathize with the 0-to-1 struggle, or they actively help you get your first customers. They are the first call in a crisis or the ones who will vouch for you on a reference call when you have no other credibility.
In a challenging fundraising climate, formal processes are insufficient. SpliceBio's CEO secured their lead Series B investor by starting informal conversations a full year before the official round. This long-term relationship-building establishes trust and allows investors to track execution over time, which is critical when capital is tight.
Avoid the classic bootstrap vs. raise dilemma by using customer financing. Pre-sell your product or service to a group of early customers. This strategy not only provides the necessary starting capital without giving up equity but also serves as the ultimate form of market validation.
ProKidney's significant funding from co-founder Pablo Legorreta and investor Carlos Slim was driven by their direct family experiences with kidney disease. This shows that for high-risk, long-term biotech ventures, a deep personal connection to the mission can be a more powerful motivator for investors than purely financial interest.
A crucial piece of advice for biotech founders is to interact with patients as early as possible. This 'patient first' approach helps uncover unmet needs in their treatment journey, providing a more powerful and differentiated perspective than focusing solely on the scientific or commercial landscape.
Instead of relying solely on traditional LPs, Vi Ventures actively brings in families affected by autoimmune diseases as for-profit investors. This model creates a community of highly motivated stakeholders, fostering accountability and a direct connection to the patient experience, while still maintaining market-rate return objectives.
A successful biotech IPO isn't about attracting the public; it's about securing commitments from crossover investors beforehand. These investors must "bring their own beer to the party" by participating in the IPO. Their presence validates the company, stabilizes the offering, and is essential for attracting generalist funds later.
Zyda's founder achieved FDA clearance and CMS reimbursement by doing the paperwork himself while being guided by retired, highly experienced experts. This capital-efficient strategy provided elite-level knowledge at a fraction of the cost (up to 50x less) of large consulting firms.