In a tough funding environment, John Maraganore cautions against rushing into founding a company. He recommends that aspiring entrepreneurs first spend 5-10 years at a successful biotech. He argues that when capital is scarce, investors prioritize experienced operators, making deep industry experience a critical prerequisite for getting funded.

When capitalizing your business, select investors for their experience, not just their money. Prioritize people who have a history of successful exits. They provide a proven playbook you can model your business against and, as partners on your cap table, their strategic influence is critical to your journey.

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.

If you've had past success with a CEO, it's a strong indicator of their talent and execution ability. Following them to their next company, as one investor did with a CEO across three separate ventures, can be a highly effective investment strategy that leverages a proven track record.

When you have no brand or track record, you can't sell trust in yourself. Instead, sell trust in the experienced, credible experts you'll bring to the project. This shifts the focus from your inexperience to their proven expertise, opening doors that would otherwise be closed.

Effective fundraising isn't a single event but a process. By conducting regular 'non-deal roadshows,' you build investor confidence and prove management's ability to execute on promises over time. This makes the eventual request for capital much more likely to succeed because trust has already been established.

The path from angel to large fund manager doesn't require a traditional start. When personal capital runs out, using SPVs for high-demand deals builds a track record and LP relationships. This deal-driven, bottoms-up approach can organically lead to raising a dedicated fund.

Actively recruiting entrepreneurs whose own ventures recently failed brings in smart, driven individuals with high ownership and a hunger to prove themselves. This is invaluable in the early, capital-constrained days when you need a team with a founder's DNA.

Raising venture capital is often a network-driven game. If you don't already have a network of VCs or a clear path through an accelerator, your focus should not be on fundraising. Instead, dedicate your effort to building a product people want and gaining traction. VCs will find you once you have something compelling to show.