Flush with cash from their GLP-1 franchises, Eli Lilly and Novo Holdings have become the most active participants in Series A biotech funding. They are leveraging their deep pockets to stimulate company formation and strategically branch into new therapeutic areas, shaping the next wave of innovation.

Facing a difficult 2023 biotech market, Recludix pursued both venture financing and a strategic partnership simultaneously. The company ultimately chose the non-dilutive Sanofi deal, highlighting the immense value of a 50-50 US profit-sharing option on a potential blockbuster asset, which was deemed superior to taking venture funding.

For its seed extension, Infinitopes deliberately targeted Amplify Bio, a US investor, not just for capital but for specific experience in cancer vaccines and AI. This move provides deep domain expertise and strategically positions the company for future access to larger US capital markets for subsequent financing rounds.

In a tight funding environment, a significant portion of startups now secure pharma partnerships *before* their Series A. This pre-validation has become a major draw for VCs, signaling a shift where corporate buy-in is needed to de-risk early-stage science for investors.

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.

While its internal pipeline targets oncology, LabGenius partners with companies like Sanofi to apply its ML-driven discovery platform to other therapeutic areas, such as inflammation. This strategy validates the platform's broad applicability while securing non-dilutive funding to advance its own assets towards the clinic.

Facing capital constraints, biotech companies must make a strategic choice. They can either dilute ownership by raising more venture capital or dilute their pipeline by partnering a secondary asset to fund their lead program. This "equity vs. assets" framework forces a clear-eyed decision on capital strategy.

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.

Arcus navigated its capital-intensive early years by using strategic collaborations to bring in over $1 billion in largely non-dilutive funding. This approach allowed the company to reach late-stage clinical milestones and generate valuable data, bridging the gap to a point where public market investors could see tangible value.