Why Preparation Matters More Than Funding Itself

For many biotech and life sciences startups, securing early funding isn’t just about having a great idea—it’s about proving that idea is worth investing in. Pre-seed and seed funding aren’t just about raising capital; they’re about building credibility, gathering data, and positioning your startup for long-term success.

Unlike software startups that can launch with minimal capital, biotech and life sciences startups face unique challenges. The path to commercialization is often longer, requiring extensive R&D, regulatory approvals, and expensive lab equipment. This means investors aren’t just looking for an MVP—they want to see scientific validation, early traction with partners, and a capable founding team that can navigate the complex landscape of life sciences innovation.

This article will focus on how to prepare for pre-seed and seed funding, ensuring that biotech entrepreneurs meet investor expectations with a strong strategy. We’ll cover:

• The difference between pre-seed and seed funding, and what investors look for at each stage.
• Key milestones biotech and life sciences startups need to hit before raising capital.
• How to prepare a compelling pitch that resonates with early-stage investors.
• Common fundraising mistakes and how to avoid them.

By the time you start pitching investors, the groundwork should already be in place. Preparation is what separates startups that secure funding from those that struggle to gain traction.

Understanding Pre-Seed & Seed Funding: More Than Just Definitions

Early-stage biotech and life sciences startups often assume that funding is the first step toward building a successful company—but investors see it differently. Funding follows progress, not the other way around.

At the pre-seed and seed stage, investors aren’t looking for profitability yet, but they do expect clear signals that your startup is solving a real problem and has a credible path forward. The key to raising early-stage capital isn’t just understanding the difference between these funding rounds—it’s about knowing what investors expect at each stage and ensuring your startup is ready to meet those expectations.

Pre-Seed: Validating the scientific hypothesis

Pre-seed funding is the earliest stage of venture capital, often used to support foundational research, early prototype development, and initial business validation. Unlike later funding rounds, where investors analyze financial performance, pre-seed investors are betting on the team, the science, and the potential market impact.

A small team of scientists might be working on a novel gene-editing therapy for a rare disease. The technology is promising, but it’s still in its infancy—no published studies, no regulatory approvals, and no clinical partnerships yet. At this stage, venture capital firms aren’t the typical investors. Instead, early believers come in the form of angel investors, biotech-focused accelerator programs, and non-dilutive grants from organizations like the NIH. The startup secures $1M in pre-seed funding, enough to run early in-vitro studies, submit a provisional patent application, and build relationships with research hospitals that might serve as trial partners in the future.

For investors, this round isn’t about generating revenue—it’s about proving feasibility. They want to see:

• A credible founding team with both scientific and business expertise.
• Early scientific validation (preliminary lab results, feasibility studies).
• A well-defined problem-solution fit—clear articulation of why this innovation matters.
• Market potential—evidence that, if successful, the startup could capture a significant opportunity.

Pre-seed funding typically ranges between $250K and $2M, often raised through SAFE notes or convertible debt rather than priced equity.

Seed Stage: Proving early traction & de-risking

By the time a startup reaches the seed stage, expectations shift. Investors now expect more than just scientific promise—they want evidence that the technology has a pathway to commercialization.

A biotech startup developing an AI-powered diagnostic tool designed to detect early-stage cancer has moved beyond lab tests. The science is promising, but investors won’t commit until they see validation beyond research papers and internal trials. To build credibility, the founding team partners with a network of hospitals for pilot studies, gathering data to demonstrate high sensitivity and specificity in real-world settings. With promising results, they expand discussions with potential commercial partners, from diagnostic labs to pharmaceutical firms, laying the groundwork for eventual FDA submission.

By the time they pitch for a $3M seed round, they aren’t just selling an idea—they’re presenting a solution that’s already gaining traction in the healthcare ecosystem. At this stage, investors expect:

• A working prototype or preclinical validation proving the technology works.
• Early customer traction or partnerships with pharma companies, research institutions, or hospitals.
• A regulatory strategy—an understanding of FDA approval pathways, CLIA certification (for diagnostics), or IND-enabling studies (for therapeutics).
• A go-to-market plan—clear steps for moving from research to commercialization.
• A roadmap to Series A, detailing how seed capital will be used to reach the next milestone.

Most seed rounds range from $1M to $5M, with startups typically giving up 10–25% equity in exchange.

Why Pre-Seed & Seed investors evaluate differently

Biotech and life sciences startups operate in a high-risk, high-reward industry. Investors at the pre-seed and seed stage are willing to take early risks, but only if they see clear signs that a startup is progressing toward key milestones.

• Pre-seed investors are betting on the team and the science—they expect founders to prove the core idea is feasible before moving forward.
• Seed investors want to see early validation and a clear path to commercialization—they’re looking for scientific de-risking and early market traction.

For biotech founders, understanding these distinctions is crucial. Approaching investors too early or without the right milestones in place can result in rejection—or worse, raising capital under poor terms.

What comes next?

You’ve got a better idea of the differences between pre-seed and seed funding. It’s a weird, somewhat muddled distinction, but it’s good to know. Just in case you need to get into the weeds with someone. In the next section, we’ll cover how to prepare for pre-seed fundraising, so you have the right traction before pitching investors.

How to Prepare for Pre-Seed Funding (Before You Start Pitching)

Raising pre-seed funding isn’t about securing capital first and figuring things out later. Investors expect to see a prepared, focused, and strategic founding team that understands how to de-risk their startup before asking for money.

For biotech and life sciences startups, this means demonstrating that the science is promising, the market exists, and the founding team is capable of executing. Unlike software startups, where an MVP can be built quickly, life sciences companies must often rely on early validation, strategic partnerships, and strong storytelling to attract investors.

Here’s how to prepare before you ever step into an investor meeting.

Build a founding team that investors can trust

At the pre-seed stage, investors aren’t funding products—they’re funding people. Your team needs to convince investors that you have the scientific expertise, business acumen, and execution skills to bring the startup from an idea to a viable company.

A solo scientist working on a novel drug candidate may struggle to attract pre-seed investors if they lack commercialization experience. But if they bring on a co-founder with biotech startup experience or an advisor with pharma licensing expertise, suddenly the company looks much stronger.

To increase investor confidence, pre-seed founders should:

• Have at least one co-founder with deep scientific or technical expertise. Investors want to see a founder who understands the complexity of the problem they’re solving.
• Bring on a co-founder or key advisor with business or commercialization experience. A great scientific idea without a path to market won’t get funded.
• Leverage credibility through affiliations. If your research is spun out of a top university lab or partnered with a major institution, highlight it.

Develop an MVP (even if it’s just a proof of concept)

Unlike tech startups, where an MVP is often a functional prototype, biotech MVPs are often scientific proof-of-concept studies rather than fully developed products.

For example, a startup developing a new targeted cancer therapy won’t have a market-ready drug at the pre-seed stage, but they can show:

• Early in-vitro or in-vivo study results demonstrating potential efficacy.
• A well-defined preclinical roadmap that outlines the next steps for development.
• A patent filing or licensing agreement that secures intellectual property rights.

Investors don’t expect biotech startups to have FDA approvals at the pre-seed stage, but they do expect founders to be strategic about proving scientific feasibility with the resources they have.

Validate the market (before investors ask about it)

One of the most common mistakes biotech founders make is assuming that a great scientific breakthrough equals a great business. Investors want to know that your solution isn’t just scientifically interesting—it’s also commercially viable.

Before seeking funding, founders should:

• Talk to potential customers and industry experts. If your product is a diagnostic test, are hospitals and labs interested? If it’s a therapeutic, have pharma companies expressed licensing interest?
• Identify the regulatory and reimbursement pathway. Investors want to know if your technology will face major hurdles getting to market. Will insurance companies reimburse for your diagnostic? Is your therapy a 510(k) fast-track candidate or does it require a full clinical trial process?
• Size the opportunity. Is this a $100M market or a $5B+ opportunity? Investors will compare your market size to the level of risk they’re taking on.

A team developing a new AI-powered drug discovery platform might run informal meetings with R&D executives at major pharma companies to gauge whether the platform could fit into existing workflows. If these early conversations yield strong interest, that’s valuable validation—even before formal contracts or partnerships exist.

Start building relationships with investors early

One of the most effective ways to secure pre-seed funding is by building investor relationships before you need capital. Many first-time founders make the mistake of waiting until they need money to reach out to investors, but biotech investors often track startups for months or years before writing a check.

To establish investor interest early:

• Attend biotech and life sciences networking events. Industry conferences, VC-hosted events, and startup showcases are great places to meet early-stage investors.
• Leverage warm introductions. Investors take meetings much more seriously when introduced by a mutual connection—this could be a professor, mentor, or another founder.
• Engage with investors on LinkedIn. Many biotech-focused VCs and angels actively share insights and startup trends. Thoughtful engagement can put your startup on their radar.
• Apply to accelerators or grant programs. Programs like IndieBio, Y Combinator Bio, or SBIR/STTR grants can provide both capital and validation.

The best pre-seed fundraising starts before you ask for money

Raising pre-seed capital isn’t about convincing investors that your idea is great—it’s about showing that your startup is ready to move forward.

By the time you begin pitching, investors should already see:

• A strong, well-balanced founding team that can execute.
• Early scientific validation that suggests your technology works.
• Market insights proving that customers and partners see value in your solution.
• Existing investor relationships that make fundraising easier when the time is right.

Without these, fundraising will be an uphill battle. The best biotech startups raise pre-seed capital because they’ve already done the work to prove they’re ready—not because they need money to get started.

What comes next?

Once pre-seed funding is secured, the next challenge is leveraging that capital to hit the right milestones for a successful seed round. In the next section, we’ll cover how biotech startups can prepare for seed-stage fundraising by demonstrating traction, regulatory progress, and commercial readiness.

How to Prepare for Seed Funding: Proving Traction & Scaling Potential

Securing seed funding is a pivotal moment for biotech startups. Unlike pre-seed rounds, where investors bet on the founding team and scientific promise, seed-stage investors expect clear progress toward commercialization.

At this stage, startups must demonstrate early traction, a defined regulatory pathway, and a scalable business model. Investors are looking for signs that the company is de-risked enough to justify a larger investment, typically between $1M and $5M, in exchange for 10 to 25 percent equity.

Here’s how to ensure your biotech startup is positioned for a successful seed round.

Prove scientific and technical validation

By the time startups reach the seed stage, investors expect more than just early research—they want proof that the technology works outside of a controlled lab environment. While full clinical validation isn’t necessary yet, biotech founders should be able to present:

• Compelling preclinical data demonstrating efficacy and safety in relevant models
• Technical feasibility studies that prove the concept is scalable
• Intellectual property protection in the form of patents or exclusive licensing agreements

For example, a startup developing a novel RNA-based therapy might conduct early in-vitro studies to show efficacy in target cells. By the seed stage, they should have secured an exclusive licensing agreement from the university that developed the underlying technology and have a clear plan for advancing into in-vivo testing.

Demonstrate early market traction and commercial potential

Investors need to see that the technology doesn’t just work scientifically—it must also be viable in the market. While biotech companies may not yet have revenue, they should be able to point to clear commercial interest from industry stakeholders. This could include:

• Letters of intent (LOIs) or strategic partnerships with pharmaceutical companies, hospitals, or research institutions
• Grant funding from organizations like the NIH or industry groups, validating scientific credibility
• Interest from potential customers, such as diagnostic labs, clinicians, or payers expressing willingness to adopt the solution
• A defined regulatory and reimbursement strategy, showing a realistic pathway to market

A team working on an AI-driven drug discovery platform might enter early-stage partnerships with pharma companies, allowing access to proprietary datasets to refine the platform’s predictive capabilities. Even without revenue, this type of engagement signals strong commercial potential.

Refine the business and go-to-market strategy

Seed investors want to know how capital will be deployed to reach the next milestone and prepare for Series A funding. A well-developed go-to-market plan includes:

• Target market definition—who will use the technology, and how large is the opportunity?
• Customer acquisition strategy—will the company partner with hospitals, license to pharma, or sell directly to researchers?
• Projected timeline to regulatory submission for therapeutics, diagnostics, or medical devices
• Revenue model and funding strategy—even if revenue is years away, what is the pathway to financial sustainability?

For a startup working on a next-generation sequencing tool, investors would expect to see a clear commercialization strategy outlining whether the company will:

• Sell directly to research institutions,
• License the technology to existing sequencing companies, or
• Pursue a partnership with a major biotech firm to accelerate adoption.

Strengthen the founding team and key hires

At the pre-seed stage, investors may be willing to back a small but highly capable founding team. By the seed stage, however, they want to see that the company has added critical expertise to support product development, fundraising, and market entry.

Investors look for:

• Scientific and technical leadership with domain expertise in the startup’s specific field
• Business development or operations hires who can lead partnerships and commercialization efforts
• Regulatory or clinical development advisors to help navigate the approval process

A startup developing a novel gene therapy may bring on a chief business officer with experience licensing biopharma assets to manage industry relationships and prepare for negotiations with potential pharma partners.

Build a pitch deck that aligns with investor expectations

By the seed stage, a biotech startup’s pitch deck needs to go beyond vision and research—it must tell a compelling business and investment story. Investors will expect to see:

• The problem and solution: What unmet need is the startup addressing?
• Scientific validation: What data supports the feasibility of the technology?
• Market opportunity: How big is the addressable market, and why is now the right time?
• Competitive landscape: Who are the competitors, and what is the startup’s unique advantage?
• Regulatory and commercialization roadmap: What milestones will be achieved with seed funding?
• Financials and fundraising plan: How much capital is needed, and how will it be deployed?

The best seed-stage fundraising happens before you ask for money

By the time biotech startups begin pitching investors, they should have already built:

• A strong foundation of scientific validation through preclinical studies or feasibility research
• Early commercial traction through strategic partnerships, LOIs, or grant funding
• A scalable go-to-market strategy that outlines regulatory pathways and customer adoption plans
• An expanded team with expertise in science, business development, and commercialization

Without these elements in place, raising a successful seed round will be difficult. The best biotech startups secure funding because they have already laid the groundwork—not because they need capital to start working on these fundamentals.

What comes next?

Once seed funding is secured, the next challenge is using that capital effectively to hit key milestones for Series A funding. In the next section, we’ll explore how biotech startups can prepare for Series A by demonstrating scalable revenue models, readying for clinical trials, and expanding into new markets (if possible).

Fundraising Strategy: How to Approach Investors

Successfully raising pre-seed or seed funding isn’t just about having a great pitch—it’s about understanding how investors think and running a strategic, well-organized fundraising process. Investors aren’t just looking for innovative science; they want to back startups that know how to execute, build momentum, and manage investor relationships effectively.

Many biotech founders make the mistake of approaching the wrong investors, pitching too early, or lacking a structured process. A poorly executed fundraising strategy can result in wasted time, unfavorable deal terms, or, worse, a failed round.

Here’s how to approach investors strategically and increase your chances of securing the right funding.

Find the right investors for your startup

Not all investors are a good fit for early-stage biotech startups. Some venture capital firms specialize in late-stage companies, while others focus on software or consumer businesses rather than life sciences.

Before pitching, founders should research:

• Industry focus: Does the investor have experience funding biotech, therapeutics, or diagnostics?
• Investment stage: Do they back pre-seed and seed rounds, or only later-stage companies?
• Portfolio companies: Have they invested in startups with similar scientific and market challenges?
• Fund size and check size: Are they structured to lead a $2M–$5M seed round, or are they better suited for Series A and beyond?

A startup developing a next-generation RNA therapeutic should prioritize investors with deep expertise in biotech and a track record of funding companies with long regulatory timelines. Approaching a generalist VC or a firm that only funds SaaS startups would be a waste of time.

Founders can use platforms like Crunchbase, PitchBook, and LinkedIn to identify relevant investors, then seek introductions through warm connections whenever possible.

Timing matters: when to start investor outreach

Many first-time founders assume they should start meeting with investors when they need funding—but biotech investors often track startups for months or even years before investing.

Ideally, founders should begin building relationships at least six months before actively fundraising. This allows time to:

• Get on an investor’s radar before asking for capital
• Receive feedback and refine the pitch based on investor insights
• Establish trust and credibility, making a formal pitch more effective

A biotech startup working on a novel AI-driven drug discovery platform might start by connecting with investors informally—attending industry events, engaging in LinkedIn discussions, and getting warm introductions through academic advisors or accelerator networks. By the time they start their seed round, investors are already familiar with their work.

Run a structured fundraising process

Raising capital should be treated like a sales process, with clear timelines, a target list of investors, and a well-managed outreach strategy.

Key steps in a structured fundraising process:

1. Prepare a compelling data room with key documents (pitch deck, scientific data, regulatory plan, financial projections).
2. Create a target list of investors based on fit, investment stage, and portfolio relevance.
3. Secure warm introductions whenever possible (through advisors, founders, or accelerator programs).
4. Set a tight fundraising timeline to avoid drawn-out negotiations that slow company progress.
5. Handle investor follow-ups professionally, tracking interest levels and due diligence requests.

Startups that approach fundraising haphazardly—reaching out to investors randomly, accepting meetings with anyone who shows interest, and dragging the process out for months—often struggle to close a round. Investors want to see founders who can run a disciplined process, set deadlines, and drive momentum.

Leverage LinkedIn and industry networks for warm introductions

Cold outreach to investors can work, but warm introductions are significantly more effective. Many biotech investors won’t take a meeting unless the introduction comes from someone they trust.

Founders can increase their chances of securing meetings by:

• Engaging with investors on LinkedIn, commenting on relevant posts, and joining industry discussions
• Attending biotech and life sciences conferences, where investors are actively scouting for new startups
• Building relationships with key industry players (professors, advisors, accelerator mentors) who can provide warm introductions

A founder developing a precision medicine platform might connect with biotech investors by engaging in discussions about companion diagnostics, regulatory strategies, and market trends—positioning themselves as a thought leader before ever asking for a meeting.

Tell a compelling investment story

A biotech startup’s fundraising pitch is more than just scientific validation—it needs to tell a clear, compelling investment story. Investors want to know:

• Why this problem matters: What unmet need does the startup address?
• Why this solution is unique: How does the technology differentiate from competitors?
• Why now? Is there a breakthrough in science, regulation, or market demand that makes this the right time for investment?
• Why this team? Does the founding team have the expertise to execute?
• Why this investment? What return potential does the opportunity offer, and how will this funding unlock value?

Startups that focus only on science and technical details often lose investor interest. The pitch must connect the scientific opportunity to a viable business case with clear financial upside.

The best founders control their fundraising narrative

Raising early-stage capital isn’t just about answering investor questions—it’s about guiding the conversation, demonstrating momentum, and proving that the startup is ready for its next phase of growth.

By the time founders actively fundraise, they should already have:

• Identified and engaged with the right investors for their industry and stage
• Built relationships and credibility before asking for funding
• Structured their fundraising process to create momentum and urgency
• Refined their investment story to connect scientific breakthroughs with market opportunity

Startups that approach fundraising proactively and strategically have a much higher success rate than those that scramble to secure funding when cash is running low.

What comes next?

Even with the right strategy, fundraising isn’t easy. Many biotech startups struggle because they make avoidable mistakes that turn off investors.

In this next section, we’ll cover the most common fundraising mistakes that hurt pre-seed and seed-stage startups—and how to avoid them.

Common Mistakes That Hurt Pre-Seed & Seed Fundraising

Even with a strong strategy, many biotech startups struggle to raise early-stage funding due to avoidable mistakes. Investors evaluate dozens of startups each month, and even a great idea can get overlooked if the pitch, team, or process isn’t aligned with what they expect.

Here are some of the most common fundraising missteps—and how to avoid them.

Raising too early, before proving traction

Investors don’t fund science alone—they fund de-risked opportunities. Approaching investors before validating the technology or market can lead to rejection, or worse, unfavorable deal terms.

How to avoid it:

• Secure preliminary data before pitching investors. Even small proof-of-concept results can go a long way.
• Engage with potential customers or partners to show there’s demand.
• Leverage non-dilutive funding (grants, accelerator programs) to hit milestones before raising equity capital.

Lacking a strong founding team

A solo scientist or a research-driven team without commercialization experience raises red flags for investors. A strong team should balance scientific expertise with business and regulatory strategy.

How to avoid it:

• Bring in co-founders or key advisors with startup or industry experience.
• Highlight academic affiliations, licensing agreements, or partnerships that lend credibility.
• If hiring isn’t possible yet, identify go-to-market experts as advisors.

Focusing too much on technology, not enough on market potential

Investors are interested in commercial viability, not just innovation. A common mistake is spending too much time explaining the science and not enough on how the technology will be brought to market.

How to avoid it:

• Clearly define the market size and business opportunity.
• Show a realistic path to revenue—whether through licensing, partnerships, or direct sales.
• Address regulatory hurdles and reimbursement strategy early.

Targeting the wrong investors

Not all investors fund early-stage biotech. Many focus on later-stage companies or industries outside of life sciences. Pitching the wrong firms wastes time and can lead to frustration.

How to avoid it:

• Research investors who specialize in pre-seed and seed biotech funding.
• Look at their portfolio—have they invested in similar companies?
• Seek introductions through warm connections instead of cold outreach.

Dragging out the fundraising process

A slow, unfocused fundraising process can kill momentum and make investors lose interest. If a startup struggles to close its round, it can send signals of weak demand.

How to avoid it:

• Set a clear timeline for fundraising and stick to it.
• Have all pitch materials and data room documents ready before outreach.
• Create a sense of urgency by targeting multiple investors at once.

What comes next?

Biotech founders who avoid these common mistakes position themselves for a smoother fundraising process and better investor terms. The strongest startups don’t just rely on great science—they combine it with commercial strategy, strong execution, and investor alignment.

With funding secured, biotech founders must focus on using capital wisely and setting up for long-term success. In the final section, we’ll cover how to leverage pre-seed and seed funding effectively to hit Series A milestones.

The Bottom Line: Raising Early-Stage Capital Best Practices

Pre-seed and seed funding are not just about securing capital—they’re about proving a startup is ready to grow. Investors want to see clear scientific validation, early commercial interest, and a team capable of executing. Founders who prepare thoroughly before fundraising close rounds faster, negotiate better terms, and set themselves up for long-term success.

By the time a biotech startup reaches the seed stage, it should have:

• A strong founding team with both technical and commercial expertise.
• Early proof-of-concept data demonstrating scientific feasibility.
• Market validation through partnerships, LOIs, or regulatory planning.
• A structured fundraising process targeting the right investors.

The most successful biotech startups raise capital not because they need funding to start—but because they’ve already laid the groundwork, built momentum, and positioned themselves as a strong investment opportunity.

With pre-seed or seed funding secured, the next challenge is using that capital wisely to reach Series A milestones. For biotech startups, this often means:

• Advancing from preclinical to early clinical studies
• Strengthening intellectual property and regulatory positioning
• Expanding strategic partnerships and early revenue models

The shift from seed to Series A is where biotech companies transition from proving feasibility to demonstrating scalability and long-term market potential.