16 Apr 2025 3 min read

How to Actually Find the Right Investors: A Field Guide for Biotech Founders

In a previous post, I explained why just asking for money is not a strategy. In another, I warned against simping for capital—blindly emailing a spreadsheet of names like you’re handing out resumes at a job fair. And in Let’s Do It, I argued that ideas only matter if you move them forward. So now it’s time to get specific.

Here’s a tactical guide for biotech founders who want to fundraise like professionals, not grant writers moonlighting as entrepreneurs.

Step 1: Segment Like a Scientist

Before you pitch, segment. This isn’t optional. It’s as foundational as knowing the pKa of your compound.

Ask yourself:

Stage fit: Are they pre-seed, seed, Series A, or later?
Sector specificity: Do they actually invest in biotech? And if yes—do they do therapeutics, or are they obsessed with diagnostics or medtech instead?
Modality: Are they small-molecule purists? Gene therapy maximalists? Platform-agnostic?
Geography: Do they write checks into your country or time zone? Or are you about to pitch a U.S. fund with a Europe-only thesis?

Resources:

Crunchbase and PitchBook (if you have access) are the obvious tools, but even plain old Google and LinkedIn filters can get you surprisingly far.
Look at portfolio pages on VC websites. That’s where their real priorities live.
For each investor, ask: Would they have invested in me last year?

Step 2: Build a Tiered Investor CRM

Think of this like your lab inventory. Sloppy tracking leads to expensive waste.

Split prospects into:

Tier 1: High-fit, high-priority (10–20 names)
Tier 2: Solid fit, but with caveats (geography, stage mismatch, etc.)
Tier 3: Opportunistic / wildcard (corporate venture arms, family offices, etc.)

For each, log:

Last fund size and date
Relevant portfolio companies (especially competitors)
Named partners to target
Warm intro paths (do you share any board members, lawyers, or advisors?)

Yes, this is work. But so is writing grants. And this has a better expected value.

Step 3: Tailor Your Materials

As discussed in Just Asking for Money Is Not a Strategy, your story must reflect who you're speaking to.

For example:

VCs care about exits. Show them potential acquirers or public comps.
Family offices may or may not prioritize alignment, but when they do, it often means highlighting patient impact or a compelling long-term vision.
Corporate partners care about pipeline fit. Show them how your platform plugs into their therapeutic area.

Avoid generic decks. You don’t wear a lab coat to every meeting—don’t use the same slide deck either.

Step 4: Treat Outreach Like Courtship

From Simping for Capital, you’ll remember the dating metaphor. Here’s the operational version:

Subject lines matter. Use specificity, not fluff. “Rare disease gene therapy raising €5M” beats “Exciting opportunity!”
Short intro emails. 4–6 lines. Attach nothing unless they ask.
Track responses like a trial: status, objections, open rates (tools like MixMax or Streak help).
Always close with a question. “Would it be worth setting up a 20-min call next week?”

The goal is not to explain your science. It’s to earn the right to explain your science.

Step 5: Don’t Wait Until You’re Desperate

As I warned in The Runway Is Shorter Than It Looks, the worst time to fundraise is when you’ve already run out of money. Fundraising isn’t something you start. It’s something you maintain.

Have your data room structured. Cap table clean. Deck up to date. One-pager ready to send. Otherwise, when the moment comes, you’ll freeze—and someone else with a less elegant molecule but a better pitch will close your round.

Final Note: Investors Are People, Not Algorithms

You’re not just managing a process. You’re building relationships. And like any good relationship, it requires mutual curiosity. Ask them what excites them. Listen to their concerns. Take notes. Even if they don’t invest now, they may in your next round—or send you to someone who will.

Biotech isn’t just about science. It’s about navigation. Those who fundraise well don’t just tell good stories. They know which rooms to walk into, and how to speak when they get there.