Starting a biotech company is exciting—but expensive. From early discovery work to proof-of-concept studies, there’s a constant pressure to show scientific progress while managing limited capital. One of the first big decisions you’ll face is how to outfit your lab: what equipment to get, how much to invest, and when to commit.
Buying everything up front might seem like the logical choice. But for seed-stage startups, that approach can quickly drain runway, limit flexibility, and delay experiments when funds are tight.
That’s where equipment leasing comes in.
This post breaks down why leasing is often the smarter path for early-stage biotechs—and how it can help you stay lean, move faster, and stay focused on the science.
Why Equipment Decisions Matter Early
Every dollar spent affects your trajectory
At the seed stage, most biotech startups are working with limited funding—typically from angel investors, pre-seed firms, or early-stage venture capital. Every dollar counts, and most of it needs to go toward building proof points: compelling data, strong scientific rationale, and early signs of product-market fit.
But getting to those milestones requires tools—often expensive ones. Whether you’re developing a diagnostic, therapeutic, or medical device, the instrumentation you need to run experiments can quickly eat into your runway.
Startups often underestimate:
- The upfront cost of equipping even a modest lab space
- The time and effort needed for procurement, setup, and validation
- The opportunity cost of capital that could go toward hiring, research, or regulatory initiatives
Making smart equipment decisions early isn’t just about managing spend—it’s about protecting your ability to execute. Delays in acquiring the right tools can slow down product development timelines, fundraising conversations, and downstream commercialization plans.
The Case for Leasing, Not Buying
Avoid large upfront costs and preserve runway
Buying lab equipment outright might feel like a long-term investment—but for early-stage companies, it often locks up too much capital too soon. When you’re preclinical, pre-revenue, and still refining your science, tying up hundreds of thousands in instrumentation can limit your ability to stay flexible.
Leasing gives you access to the equipment you need without the high upfront spend. Instead, you pay over time, preserving capital for other critical initiatives—like hiring, reagents, CRO contracts, or preparing for Series A.
For startups operating out of an incubator or shared lab space, leasing is especially attractive. You don’t have to worry about long-term storage, moving costs, or trying to resell equipment you no longer need. And if you outgrow your setup or pivot your focus, you’re not stuck with sunk costs.
When structured well, lease agreements can also offer:
- Shorter lease terms aligned with key R&D milestones
- The option to upgrade instrumentation as needs evolve
- Potential tax and accounting benefits depending on how the leased equipment is classified
In a capital-constrained ecosystem like biotech, leasing isn’t just cost-effective—it’s strategic.
Build Only What You Need
Scale your lab intentionally—not all at once
There’s a strong temptation in biotech to build the “perfect” lab upfront. It’s easy to imagine needing every piece of equipment someday—especially if your end goal includes in-house development, clinical trials, or commercialization. But for most early-stage companies, building too much too soon leads to overspending and underutilization.
Leasing lets you right-size your infrastructure for where your science is now—not where you think it’ll be in 18 months. You can equip just one bench or room in your lab space, test key workflows, and add more capacity when your team, programs, or data demands grow.
This approach is especially useful in markets like San Francisco or Seattle, where lab real estate is scarce and expensive. The fewer square feet you need to outfit initially, the less you’ll spend on build out and overhead. Leasing also gives you the flexibility to adjust as your R&D milestones, fundraising, or team dynamics shift.
You’re not building a commercial facility—you’re building a smart, focused startup lab. Leasing helps you do that without overcommitting capital or real estate.
Move Faster Without Sacrificing Quality
Get the tools you need—when you need them
In early-stage biotech, timing is everything. Whether you’re preparing for a grant submission, pitching to investors, or generating data for a publication, delays in experimentation can set you back weeks or months. And in a competitive field, speed often translates directly to valuation, visibility, and opportunity.
Leasing helps you avoid the slow procurement cycles that come with capital purchases—especially if you're dealing with internal budget approvals or waiting on the next tranche of funding. Instead of holding off on buying until your Series A closes or your next grant hits, you can start experiments now and pay monthly.
It’s also a way to access cutting-edge instrumentation that might otherwise be out of reach. A well-structured lease lets you get the same top-tier tools used by larger pharma or life sciences companies—without the full sticker price or maintenance burden.
And if your needs change mid-stream? Leasing gives you options. You can:
- Swap or upgrade equipment based on program shifts
- Add new instruments as you bring on new team members
- Return what you no longer need if timelines change
Ultimately, leasing reduces friction so you can keep your science moving forward—without compromising on quality, capability, or momentum.
Final Thought
Leasing gives early-stage biotechs an edge
At the seed stage, success comes down to focus, speed, and flexibility. The right scientific insight won’t go far without the infrastructure to explore it—and the wrong infrastructure can burn capital before you reach key inflection points.
Leasing lab equipment isn’t just a way to cut costs. It’s a smarter way to build:
- You avoid large upfront purchases
- You preserve capital for research, hiring, and fundraising
- You create room to adapt your setup as your science evolves
For early-stage biotech startups, that flexibility is critical. It allows you to grow your lab one milestone at a time—without getting stuck in place or stretched too thin.
If you’re deciding how to equip your first lab, leasing could be the difference between simply getting started—and actually getting ahead.
Need equipment for your lab but don’t want to drain your budget? Lease it through Excedr.
Our leasing program helps biotech startups preserve capital by reducing capital expenditures (CapEx) and turning large upfront purchases into manageable monthly payments. That means more cash on hand for R&D, hiring, and scaling operations.
With Excedr, you can:
- Access cutting-edge instrumentation without the full sticker price
- Stay flexible with custom lease terms built around your timelines
- Hit key scientific milestones faster by getting the tools you need—now
- Avoid the delays and complexity of traditional procurement
Whether you're in an incubator or outfitting your first lab space, Excedr helps you build smarter—so you can move faster.