Top 20 tips for raising pre-seed funding

Vellos Team
07 March 2024

Raising a pre-seed round in the biotech sector presents a unique set of challenges and opportunities, given the industry's intense focus on scientific innovation, regulatory navigation, and market potential.

This section delves into 20 crucial strategies tailored for biotech entrepreneurs aiming to secure early-stage funding. From refining your scientific pitch to leveraging networks and articulating a clear path to market, these tips offer a comprehensive roadmap for navigating the complex landscape of biotech fundraising. Whether you're showcasing a groundbreaking therapeutic or a novel diagnostic tool, these insights will help prepare you for the journey from lab bench to market.

Refine Your Scientific Pitch: Clearly communicate your innovation's scientific basis, market need, and potential impact.
Showcase a Diverse Team: Highlight a team with strong scientific credentials and business acumen.
Demonstrate Scientific Traction: Present any data, patent filings, or research collaborations that validate your approach.
Network Within Biotech Circles: Engage with biotech-specific events, forums, and innovation hubs.
Research Biotech-Focused Investors: Target investors with a history of biotech investments.
Create a Biotech-Specific Investor List: Rank potential investors based on their interest in biotech sectors like therapeutics, diagnostics, or agricultural biotech.
Practice with Targeted Feedback: Seek feedback from biotech experts or advisors before pitching to top-choice investors.
Leverage Scientific Networks for Introductions: Utilize academic and industry connections for warm introductions.
Prepare Detailed Scientific Dossier: Have all relevant scientific data, IP details, and regulatory strategy documents organized.
Maintain Scientific Communication: Keep potential investors informed of scientific progress and milestones.
Understand Biotech Market Dynamics: Deeply analyze your specific biotech niche, regulatory environment, and competitor landscape.
Articulate the Problem and Your Solution: Emphasize the unmet need your biotech innovation addresses.
Showcase Your MVP or Proof of Concept: Highlight any prototypes, lab results, or proof of concept that demonstrate feasibility.
Clarify Use of Funds for Scientific Milestones: Detail how investment will support specific scientific milestones.
Set Realistic Scientific Valuations: Understand valuation norms within the biotech industry.
Tailor Your Pitch for Biotech Investors: Focus on the science, potential impact, and market opportunity.
Highlight a Clear Path to Market: Despite long biotech development cycles, outline a clear commercialization strategy.
Build a Board of Scientific Advisors: Utilize advisors to enhance credibility and provide industry insights.
Discuss Scientific Risks Openly: Address potential scientific and regulatory challenges and your strategies to mitigate them.
Vision for Biotech Innovation: Share how your biotech venture aims to revolutionize its field.

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