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.

Drawing an analogy to legendary music producer Rick Rubin, an investor's role is to help a founder find the most authentic and compelling version of their own story. The goal is not to invent a narrative, but to draw out the founder's core truth and channel it through their company.

Private VCs with board seats operate deterministically, using their influence to 'make sure' a drug succeeds. Public fund managers operate probabilistically, accepting imperfect information in exchange for liquidity. They must calculate the odds of success rather than trying to directly shape the outcome.

The most fulfilling and effective angel investments involve more than capital. Founders benefit most from investors who act as operators, offering hands-on help and staying involved in the business. This approach is more rewarding and can lead to better outcomes than passive check-writing.

The life sciences investor base is highly technical, demanding concrete data and a clear path to profitability. This rigor acts as a natural barrier to the kind of narrative-driven, AI-fueled hype seen in other sectors, delaying froth until fundamental catalysts are proven.

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.

The hardest transition from entrepreneur to investor is curbing the instinct to solve problems and imagine "what could be." The best venture deals aren't about fixing a company but finding teams already on a trajectory to succeed, then helping change the slope of that success line on the margin.

The biotech ecosystem is a continuous conveyor belt from seed funding to IPO, culminating in acquisition by large biopharma. The recent industry-wide stall wasn't a failure of science, but a halt in M&A activity that backed up the entire system.

Unlike operating companies that seek consistency, VC firms hunt for outliers. This requires a 'stewardship' model that empowers outlier talent with autonomy. A traditional, top-down CEO model that enforces uniformity would stifle the very contrarian thinking necessary for venture success. The job is to enable, not manage.