My meetings at the January 2022 RESI Conference were dedicated to introducing BioSuperior Technology. At the June RESi Conference my meetings were a mix of introductions and updates. I was excited to share the progress we have made during the first half of 2022!
While I am not new to the biotech startup world, there’s always more to learn. With this perspective, I was an attentive participant in the Conference panels. The first one was an engaged discussion among Startup Founders. Two of them described that raising ~ $1M took about 1 year to complete and identifying a Lead Investor did not automatically open the floodgates.
I was glad to hear that some of the panel insights are steps already taken by BioSuperior Tech. For example, help investors visualize product commercialization or company exit. Describe how much money will be needed overall and how long it will take to achieve specific inflection points? Are there contingency plans if things go off the rails?
Engaging with Angel Investors can be a slower process than engaging early-stage VCs. The latter can work more quickly once they decide they want to invest. Send out regular communications even at early stages of development.
Several Venture Capital investors stated that biotech companies cannot expect inflated valuations due to the slowing of the general economy. There is no FOMO in this market. Still, there is significant capital that needs to be “working” and new venture firms are being formed each week. The bottom line: companies with a sound scientific foundation, a quality team and clear product orientation will find investors. Capital will be tight for the next 1-2 years, so be attentive to capital management to help “weather the storm”. Find investors who are also able to help companies move towards product and profitability.
The Angel Investor panel discussion was also helpful. Many Angels are also entrepreneurs, so they know what it’s like to sit at both sides of the table. They encouraged the audience to think broadly about funding sources- don’t just rely on Angels! As with the VCs, they advised planning to raise more money near-term and monitor cash flow carefully.
Lining up investors is an ongoing exercise in building relationships. Once a decision to invest is made investors have a vested interest in helping you succeed. Some Angels avoid investing in companies that need more than $25M to reach profitability. Founders also need to be mindful of this since raising major dollar amounts in later rounds seriously dilutes Angels and Founders.