Unlike tech investing, where a single power-law outlier can return the entire fund, biotech wins are smaller in magnitude. This dynamic forces biotech VCs to prioritize a higher success rate across their portfolio rather than solely hunting for one massive unicorn.

By first targeting T-cell lymphoma, Corvus gathers crucial safety and biologic effect data in humans. This knowledge about the drug's impact on T-cells directly informs and de-risks subsequent trials in autoimmune diseases like atopic dermatitis, creating a capital-efficient development path.

The current boom in immunology and autoimmune (I&I) therapeutics is not a separate phenomenon but a direct consequence of capital and knowledge from immuno-oncology. Many of the same biological pathways are being targeted, simply modulated down (for autoimmune) instead of up (for cancer), allowing for rapid therapeutic advancement and platform reuse.

In the rare disease space, success hinges on deep patient community engagement. Smaller, nimbler biotechs often excel at creating these essential personal ties, giving them a significant advantage over larger pharmaceutical companies.

Despite significant progress in managing symptoms for autoimmune conditions, very few treatments fundamentally alter the disease's course. The major unmet needs and investment opportunities lie in therapies that can induce remission or target common underlying pathologies like fibrosis, moving beyond mere symptom relief.

Renowned gene therapy pioneer Jim Wilson was forced to spin out ultra-rare disease programs into a new company after his initial venture failed to attract VC funding. This demonstrates that even elite scientific leadership cannot overcome investor disinterest in this segment without powerful, predictable government incentives like transferable priority review vouchers.

Unlike software startups that can "fail fast" and pivot cheaply, a single biotech clinical program costs tens of millions. This high cost of failure means the industry values experienced founders who have learned from past mistakes, a direct contrast to Silicon Valley's youth-centric culture.

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.

Venture capital for US seed and Series A cell and gene therapy companies has collapsed from a historical high of 17-21% of deals to only 7% this year. The sharp decline is driven by a confluence of factors including patient deaths, persistent manufacturing challenges, and growing regulatory uncertainty.