In today’s volatile capital markets, life sciences and biotech leaders are rethinking how – and when – they fund growth. That reality was front and center at the CBIZ New England Life Science & Biotech Summit 2025, where a panel of investment, legal, and advisory experts unpacked the funding landscape for startups and growth-stage companies navigating uncertainty.
Moderated by Jason Moi, managing director at CBIZ, the discussion brought together Thomas Busby of Mirus Capital Advisors, Victor Olmos of Kendall Capital Partners, and Wayne Martino of Brenner, Saltzman & Wallman LLP. Together, they explored how funding strategies evolve as companies mature, what investors are prioritizing right now, and how founders can position themselves for long-term success, even when capital feels constrained.
Growth-Stage Funding: Debt vs. Equity
One of the panel’s early themes was the importance of recognizing when a company has moved beyond the startup phase. Growth-stage life sciences companies, typically those with one or more institutional rounds completed, face a very different set of capital needs than early-stage ventures.
At this stage, funding decisions should be driven by how capital will be used. For many growth-stage companies, especially those seeking working capital rather than breakthrough discovery funding, debt can be a more efficient tool than equity. Device and diagnostics companies, which often have tangible assets and clearer revenue paths, may be better positioned to leverage debt financing. Therapeutics companies, by contrast, tend to remain more equity-dependent given the speculative nature of early clinical assets.
The takeaway: matching the funding instrument to the company’s maturity and asset profile is critical.
SAFE vs. Convertible Notes: The Coast-to-Coast Debate
The panel also tackled the ongoing debate between Simple Agreements for Future Equity (SAFEs) and convertible notes, a choice that continues to shape early fundraising conversations.
Panelists noted that investor preference often varies by geography. West Coast investors tend to favor SAFEs for their simplicity and speed, while East Coast investors often lean toward convertible notes for their diligence and data-driven approach. Institutional investors often take convertible notes more seriously, while angel networks are increasingly open to SAFEs.
However, not all SAFEs are created equal. Newer versions have evolved to be more investor-friendly, making it essential for founders to understand the terms they’re agreeing to. The panel also cautioned against overusing SAFEs, as a crowded capitalization table can become a red flag for future institutional investors.
VC Ownership Requirements & Round Sizes
Another critical insight centered on venture capital ownership requirements. Some VC firms target a minimum ownership stake, which can directly influence round size.
If a VC wants a larger stake, they may push for a smaller round, which could leave the company short of the capital needed to reach key milestones. Speakers advised that it’s generally better to secure enough funding to hit value inflection points, as underfunding can lead to risky bridge rounds that may shake investor confidence. The panel consensus was that having more capital provides leverage and reduces risk, while bridge rounds can signal trouble to future investors.
Non-Dilutive Funding: An Underutilized Resource
While venture funding tends to dominate the conversation, the panel encouraged founders not to overlook non-dilutive funding sources, such as grants and foundation support. Many disease-specific foundations and charities are eager to support research aligned with their mission and, in some cases, may structure support in exchange for future royalties rather than equity.
The CEO’s Evolving Role
The panel also highlighted how a CEO’s responsibilities change over time. In the earliest stages – pre-seed through Series A – raising capital dominates the role. A spontaneous meeting while golfing or skiing can be the spark that ignites the right connection. As companies mature past Series A, the CEO’s focus should shift toward business development and exit opportunities. This evolution is crucial for long-term success.
Dilution, Re-Vesting, and Building the Right Team
Equity dilution and re-vesting were identified as common challenges for founders, especially as new investors and option pools are introduced. The panel reinforced a pragmatic mindset: giving up equity is often necessary to attract the right talent and capital. A smaller piece of a successful company, they noted, is far preferable to maintaining control of one that never reaches scale.
What Investors Are Really Looking For
While technology and market opportunity matter, the panel agreed that teams remain the most critical investment factor. In biotech, where outcomes can be binary, experienced, data-driven leadership is especially valuable. Investors want CEOs who understand the science, respect the data, and can adapt quickly as market conditions change.
In Summary: Capital Creates Options
The panel closed with a clear message for founders navigating today’s funding environment: understand your options, be strategic about timing and structure, and recognize that capital provides flexibility. When the opportunity arises to secure funding – particularly from high-quality venture partners – having capital in hand provides valuable flexibility and runway for growth.
In an uncertain market, preparation and perspective can make the difference between simply surviving and truly thriving.
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