3 Tips for Biotech Startups Looking for Undiluted Capital to Survive the Downturn – TechCrunch

future audit of money From your biotech startup through a market crash means more than raising capital or rushing to close your run.

I conduct due diligence on dozens of life sciences companies each week whose technologies may help protect the world in the future from biological threats, pandemic, or otherwise. I see everything from neural sensors and artificial intelligence for clinical trials to synthetic biology and quantum sensors. Every startup coming across my office has been well capitalized, but there may be problems on the horizon.

With inflationary market dynamics now strongly here and financial tightening continuing, it’s only natural that more cash-burning speculative projects, like biotech – especially deep science stuff – suffer the most and suffer first.

But government investment cycles are opposed to the dynamics of private investment. When the economy is doing better, it requires less intervention and support. In times of crisis, monetary and fiscal policies aim to quickly resolve economic burdens. This is as true today as it was during the early 2000s or after 2008.

Founders of biotech startups are most vulnerable in these circumstances and must look beyond traditional fundraising to survive. In times of economic downturn, undiluted grants or contracts from the government should be seen as more attractive than ever because they provide a runway without diluting and making headlines.

As a startup, it’s easy to focus on dilutive capital increases, even if the overall climate isn’t the best for it.

Our team built our venture capital firm through advisory work. Since 2019, we’ve worked with more than 100 startups in every sector across the country, generating more than $350 million for their startup technologies.

We are taking a broad view of national defense and considering any technology that may help prove our way of life in the future, including the life sciences. Most founders don’t know this before they interact with us, but there is a significant amount of undiluted capital dedicated to applied life sciences research with 100% success rates. You must know where to look.

So, how should you start getting undiluted capital from the government to start your own biotech venture?

Do not ignore the Ministry of Defense

We support health startups all the time that don’t realize how much R&D funding in the life sciences field is being provided by the US Department of Defense; Some are even intended for small businesses.

The Army, Navy, and Air Force each have their own strategic health and life sciences priorities, as do the Defense Health Agency, the Defense Innovation Unit, the Congressional Directed Medical Research Program, the Defense Advanced Research Projects Agency, and NASA, to name a few.

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