Luba Greenwood argues that unlike in tech, many biotech CEOs lack P&L experience. In today's cash-constrained market, CEOs need to be able to build financial models and understand finance deeply to be effective, a skill she personally developed after transitioning from law and science.
A massive, multi-trillion dollar wealth transfer is making family offices more institutionalized and eager to diversify into alternative investments like life sciences. Luba Greenwood points to this as a significant, often overlooked fundraising channel for biotech companies seeking direct investment.
In a tough market, fundraising success comes from precision targeting. Luba Greenwood advises skipping the "big 10" pharma and large VCs. Instead, focus on smaller to mid-sized pharma companies hyper-specialized in your therapeutic area and newly-raised, smaller VC funds that are actively deploying capital.
To gain a real-time, granular understanding of expenses, CEOs should set extremely low approval thresholds, essentially signing off on every small purchase. This practice moves cash burn from an abstract monthly number provided by finance to a tangible, deeply understood metric for the leader.
The default rush to hire a C-suite is often a mistake. Luba Greenwood argues that a full-time CFO is an expensive and frequently unnecessary hire for an early-stage company. The role is only critical for complex, multi-asset companies or those actively pursuing an IPO.
Investor preference for CEOs has shifted dramatically. While 2019-2021 favored scientific founder-CEOs, today’s tough market demands leaders with prior CEO experience. The ideal candidate has a "matrix organization" background, understanding all business functions, not just the science.
Luba Greenwood reframes competition in biotech as a positive force. When multiple companies pursue the same biological target, it validates the target's importance and accelerates discovery. This collaborative mindset benefits the entire field and, ultimately, patients, as the best and safest drug will prevail.