Top Tips for Pitching to VCs in the Life Sciences & Biotech

Pitching to venture capitalists (VCs) is a crucial step for life sciences startups looking to secure funding. However, getting the attention of VCs can be a daunting task, especially in the highly competitive life sciences industry.

Earlier this month, we had the pleasure of moderating a special BioNeex Forum webinar along with BioNeex entitled, The Multi-Million VC Plan – How to Successfully Pitch Your Biotech Company to Gain Venture Capital Funding. Attendees heard from leading life science venture capitalists at TVM Capital Life Science. 

For those that didn’t make the event, we compiled a summary of key insights shared. Read on and let us know how the Sosna + Co team can help!

Focus on the problem and the solution

VCs are interested in companies that are solving significant problems in the life sciences. When pitching to VCs, you need to be clear about the problem you are trying to solve and how your solution is addressing it. You should also provide data and evidence to support your claims.

In biotech, this looks like:

  • Building a clear and convincing story for your target audience

  • Communicating the potential clinical impact and value

  • Outlining risks and risk mitigation strategies

  • Set up a “data room” that includes information like asset characterization, preclinical data, clinical data (for late-stage therapeutics), correspondence with regulatory agencies, etc.

Demonstrate the market opportunity

VCs want to invest in companies that have a large and growing market opportunity. To show that your solution is addressing a significant market opportunity, you must provide data and evidence to support your market size and growth projections.

In biotech, it is key to have a value proposition and information on the addressable market, including:

  • Clinical indications, unmet need, differentiation from the competition, target product profile

Highlight your team's expertise

VCs invest in people, not just products or technologies. It's crucial to highlight your team's expertise and experience. Make sure to emphasize the qualifications of your key team members and advisors.

Be clear and concise

VCs are busy people, and they receive hundreds of pitches every week. When it comes to giving your pitch, be clear and concise! Make sure to focus on the most critical points, and don't waste their time with unnecessary details.

In the sciences, including biotech and pharmaceuticals, more detailed and specific information can be provided later as part of the data room (as mentioned above) or as additional publications, data, and reports.

Be careful not to oversell!

While it’s important to offer a clear, convincing story for your innovation, be careful not to over-promise or use excess hyperbole. Identify gaps and key risks in order to consider and implement risk mitigation strategies.

The Ideal Due Diligence Package Checklist

Attendees of the original webinar received a Due Diligence Package Checklist for Life Science & Biotech Companies. To obtain a copy, please email us at info@sosnaco.com and we will send you a copy directly!

Conclusion

Overall, successfully pitching to venture capitalists in the life sciences, including biotech, requires preparation, clarity, and focus. By following these best practices, you can increase your chances of securing funding and taking your life sciences startup to the next level.

—

Sosna + Co is a boutique, outsourced business development partner for the life sciences. From M&A advisory and licensing deals with Fortune 500 companies to uncovering the potential of savvy, new start-ups, the principle is simple: we work meticulously to uncover new opportunities that grow your business. Contact us today to learn more.

business, pitch, dealsErica Sosnowski