Future-proofing the finances of your startup through a market collapse means more than just raising money.
I perform due diligence on dozens of life science companies each week to see if their technologies can help future-proof the world. Neural probes, artificial intelligence and synthetic biology are just some of the things I see. Problems might be on the horizon but every startup was well capitalized.
With inflationary market dynamics now firmly here and fiscal tightening ongoing, it's natural that more speculative ventures with higher cash burn will suffer the most.
Private investment dynamics are opposed by government investment dynamics. The economy needs less support when it is doing well. Monetary and fiscal policies are used during times of crisis. This is the same as it was before or after 2008.
The founder of a biotech startup is most at risk in these conditions. Non-dilutive grants or contracts from the government should be seen as more appealing in a downturn because they provide a runway without being altered.
As a startup, it’s easy to focus on dilutive capital raises, even if the macroclimate may not be the best for it.
Advisory work helped build our firm. Over 100 startup have been secured over $350 million to innovate emerging technologies since 2019.
We consider any technology that might help future-proof our way of life, life sciences included. There are large pots of non-dilutive capital out there earmarked for applied life science research that have a 100% success rate. It's up to you to know where to look.
How should you source non-dilutive capital for your startup?
We support health startups that aren't aware of how much life science research and development funding the US Department of Defense has.
The Army, Navy and Air Force have their own priorities, but so do the Defense Health Agency, Defense Innovation Unit, Congressionally directed medical research program, Defense Advanced Research Projects Agency and NASA.
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