3 Tips for Biotech Startups Looking for Non-Delative Capital to Survive a Recession – Meczyki.Net

future-proofing of finance Your biotech startup through a market collapse means more than just raising capital or rushing to close its round.

I do due diligence each week on dozens of life science companies whose technologies could help future-proof the world against the next biothreat, pandemic or otherwise. I see everything from neural probes and artificial intelligence to synthetic biology and quantum sensors for clinical trials. Every startup that came to my desk was well capitalized, but trouble may be on the horizon.

With inflationary market dynamics now firmly here and fiscal tightening in place, it is natural that the more cash-burning speculative enterprises, such as biotech – particularly the intensive science stuff – suffer the most and suffer first.

But government investment cycles oppose the dynamics of private investment. When the economy is doing well, it requires less intervention and support. In times of crisis, monetary and fiscal policies are in place to resolve the economic burden expeditiously. This is as true today as it was in the early 2000s or after 2008.

Biotech startup founders are most vulnerable in these circumstances and must look beyond classic fundraising to survive. In the event of a recession, non-disruptive grants or contracts from the government should be seen as more attractive than ever because they provide runway without dilution and make big headlines.

As a startup, it’s easy to focus on capital growth, even when the macroclimate isn’t the best for it.

Our team built our venture capital firm through advisory work. Since 2019, we have worked with over 100 startups in every sector across the country, raising over $350 million to help them innovate emerging technologies.

We take a broad view of national defense and consider any technology that can help future-proof our lives, including life sciences. Most founders don’t know this before joining us, but there are large pots of non-diluted capital earmarked for applied life science research that have a 100% success rate. You just have to know where to look.

So how should you go about sourcing non-dilutive capital from the government for your biotech startup?

Don’t Ignore DoD

We support health startups all the time that are not aware of how much life science research and development funding the US Department of Defense has; Some of it is even dedicated to small businesses.

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