During market downturns, biotech companies lose the ability to raise capital simply when it's convenient. Financing becomes tied to specific events. The key is timing a fundraise immediately before or after the release of significant clinical data that de-risks the company and attracts new investors.

Contrary to common advice, the founder deliberately raised capital in small increments, never securing more than 12 months of runway. He found this self-imposed pressure was a powerful forcing function that kept him and the team sharp and focused on hitting critical milestones.

The best time to raise money is when your company doesn't desperately need it. Approaching investors from a position of strength gives you leverage. If you wait until you're desperate, you will be forced to accept expensive, highly dilutive capital.

While a challenging fundraising market seems negative, it forces startups to operate with discipline. Unlike in frothy markets where companies expand based on hype, the current climate rewards tangible results. This compels a lean structure focused on high-value projects, creating a healthier long-term business model.

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.

Factory's founder views fundraising as a milestone marking a shift in the company's state, triggered by rapid growth and the need to scale the team, rather than an end goal. This mindset keeps the focus on the core business.

Fundraising as a first-time biotech CEO is not a single skill. Ron Cooper's experience at Albareo involved executing seven different financial transactions in two years, most of which were new to him. This demonstrates that success requires intense persistence ("wearing out your shoe leather"), a compelling story, and creativity in pursuing non-traditional financing.

Alan Bash's biggest learning after moving from Bristol-Myers Squibb to smaller biotechs was the constant pressure of cash runway. Unlike in large pharma where budgets are a concern, in biotech, cash availability dictates all strategic choices, including partnerships and M&A.

Astute biotech leaders leverage the tension between public financing and strategic pharma partnerships. When public markets are down, pursue pharma deals as a better source of capital. Conversely, use the threat of a public offering to negotiate more favorable terms in pharma deals, treating them as interchangeable capital sources.