Why Series A Is a Pivotal Moment

For biotech startups, raising a Series A round marks a major turning point. It’s no longer about proving an idea has potential—it’s about demonstrating that the business can scale. Investors at this stage aren’t just funding research; they’re funding companies positioned for long-term success.

At the seed stage, biotech startups focus on scientific validation, early partnerships, and regulatory planning. But Series A investors expect more. They want to see:

• A proven ability to execute: Has the team advanced from preclinical research to the next development stage?
• Market validation: Are there strategic partnerships, LOIs, or pilot programs showing demand?
• A clear regulatory and commercialization roadmap: How will the company move toward FDA approval and market entry?

This is where many startups struggle. The transition from seed to Series A requires not just strong science, but a scalable business model, efficient operations, and investor-ready financials. The startups that secure Series A funding aren’t just the ones with breakthrough ideas—they’re the ones that can execute at scale.

This article will break down what it takes to successfully raise a Series A round in biotech, covering:

• How investor expectations change between seed and Series A.
• The key milestones startups must hit before fundraising.
• How to build a strong financial and operational foundation.
• How to craft a Series A pitch that resonates with investors.

By the time a startup reaches Series A, investors expect a different level of readiness. The companies that raise successfully are those that have done the work before they start pitching.

Understanding Series A: More Than Just a Bigger Seed Round

Many biotech founders assume that raising a Series A round is just a scaled-up version of seed funding. In reality, the shift from seed to Series A is significant. Investors are no longer backing an idea or early research—they’re backing a company that has demonstrated it can execute and grow.

At the seed stage, investors took a chance on the founding team, scientific concept, and market potential. At Series A, they expect:

• A proven track record of execution—scientific progress, regulatory advancements, and operational milestones.
• A well-structured business model—not necessarily profitability, but a clear pathway to sustainable growth.
• Stronger due diligence—financials, cap table, and commercialization strategy must be investor-ready.

Who Invests in Series A Rounds?

The investor landscape shifts significantly at Series A. While seed rounds often involve angel investors, micro-VCs, and early-stage funds, Series A is dominated by:

• Venture capital firms specializing in life sciences, biotech, and healthcare.
• Institutional investors with a long-term outlook on deep-tech and therapeutics.
• Strategic corporate investors (e.g., pharma or medical device companies) looking for early-stage innovation.

A startup developing a next-generation gene therapy might raise seed funding from angels and accelerators, but Series A funding will come from VC firms that specialize in high-risk, high-reward biotech investments.

Series A rounds are also significantly larger—typically ranging from $10M to $30M, in exchange for 15-30% equity. Unlike seed funding, which is often fragmented, Series A rounds are usually led by one or two major investors who take a board seat and play an active role in company strategy.

How Series A Investors Evaluate Biotech Startups

At this stage, investors are making bigger bets—and they need stronger proof before committing capital. They will evaluate startups across three core areas:

1. Scientific & Clinical Progress:
   
   • Has the startup moved from preclinical research to clinical readiness?
   • Are there strong IP protections, licensing agreements, or patents in place?
   • Have early-stage regulatory steps been taken (e.g., IND filing or FDA pre-submission)?
2. Market & Business Viability:
   
   • Are there partnerships or pilot programs demonstrating commercial interest?
   • Has the startup mapped out a regulatory and reimbursement strategy?
   • Is there a defined path to market entry, even if revenue is years away?
3. Operational Readiness & Team Strength:
   
   • Does the startup have key hires beyond the founding team?
   • Can the team manage a $10M+ budget efficiently?
   • Has the company structured its cap table and fundraising strategy for long-term growth?

For a startup developing a novel oncology therapeutic, it’s not enough to show promising lab results. Series A investors will want to see partnerships with research hospitals, IND-enabling studies, and a realistic timeline for entering clinical trials.

Why Series A Is a Defining Moment for Biotech Startups

Unlike seed rounds, where startups are still proving feasibility, Series A is about proving scalability. Investors want to know:

• Can this company execute at a larger scale?
• Will this technology translate from research to real-world impact?
• Is this a smart long-term investment, with a clear exit strategy?

The biotech startups that succeed at Series A are those that have de-risked their science, strengthened their business model, and built an operational foundation that can support significant growth.

For startups that are serious about raising a Series A round, meeting investor expectations means showing measurable progress. The next step is proving that the company isn’t just growing—but that it’s built to scale efficiently. Investors will look closely at clinical progress, market validation, and operational execution, all of which play a critical role in securing funding.

Proving Growth & Scalability: What Series A Investors Want to See

By the time a biotech startup reaches Series A, investors are no longer betting on potential—they're looking for proof that the company is ready to scale. That proof doesn’t come from a single breakthrough or a promising dataset. It comes from a combination of scientific progress, early market validation, and operational readiness.

Investors want to know that the company isn’t just advancing in the lab but moving toward real-world impact. A gene therapy startup that’s published promising preclinical results won’t raise a Series A unless it also has an IND filing in progress, partnerships with research hospitals, and a manufacturing plan in place. The ability to take the next step—whether that’s entering clinical trials, expanding market reach, or scaling operations—is what separates companies that secure Series A funding from those that stall.

Progress at this stage isn’t just about hitting a milestone; it’s about showing a repeatable pattern of success. Investors will dig into:

• Clinical or regulatory momentum. Is the company moving toward an IND, FDA breakthrough designation, or early clinical studies?
• Strategic partnerships. Are there pharma collaborations, licensing discussions, or early adopters lined up?
• A clear market entry strategy. Does the startup understand how it will reach its first customers or commercial partners?
• Operational efficiency. How has the company managed capital so far, and is the team capable of handling a $10M+ investment responsibly?

For many startups, Series A is where they need to prove that they can turn scientific validation into a business. Investors expect a clear path forward, not just in the lab, but in the market. That means the fundraising story has to go beyond “we have exciting data” and instead show “we have momentum, and we know how to scale.”

No investor wants to fund a company that’s still figuring out its next move. They want to back startups that are already moving. The companies that raise successful Series A rounds don’t just have strong science—they have a track record of execution and a plan that makes their next stage of growth feel inevitable.

The ability to scale doesn’t just come from great technology—it comes from a team, a strategy, and a structure built for growth. And that’s exactly what Series A investors will scrutinize next.

Financial & Operational Readiness: Preparing for Due Diligence

Series A investors don’t just look at where a company is going—they examine how it’s run. If a biotech startup is asking for $10M+ in funding, investors need to know the company can manage it. Strong financials, clear regulatory planning, and operational discipline are non-negotiable.

At the seed stage, many startups operate in survival mode, stretching capital to hit key milestones. But at Series A, investors expect a shift toward structured financial planning and strategic execution. They want to see:

• A clean cap table. Too many early investors, messy equity splits, or unclear ownership can slow down a deal.
• Financial transparency. Burn rate, runway, and a clear allocation of Series A capital must be well-documented.
• Regulatory and clinical plans that align with funding needs. How will this round move the company from its current stage to the next?

If a startup has been securing funding through grants, partnerships, or early contracts, investors will want to understand how those sources fit into the long-term financial picture. Can the company sustain itself if clinical trials take longer than expected? Will it need another raise within 12 months, or is this round designed to get the startup through a major milestone?

Fundraising is about more than convincing investors to write a check—it’s about proving the company is ready to handle the responsibility that comes with that check. Investors want to see an organization that knows its numbers, understands its trajectory, and is prepared to scale with discipline.

For biotech startups, securing Series A means showing that financial and operational readiness isn’t an afterthought—it’s part of the foundation. And that starts with the team behind the company.

Building the Right Team to Attract Series A Investors

By the time a biotech startup reaches Series A, investors expect more than a visionary founding team. They’re looking for a company that has the leadership, expertise, and operational depth to execute at scale. A startup that raised a seed round with a small, research-driven team now needs to show that it’s capable of growing into a fully operational biotech business.

This is where many startups fall short. Investors want to see that the company has the right people in place to take the business to the next level. That means:

• Leadership with both scientific and commercial expertise. A great R&D team isn’t enough—Series A investors expect a startup to be building toward commercialization, even if revenue is still years away.
• Regulatory and clinical experience. If a company is moving toward clinical trials, it needs people who have navigated that process before.
• Financial oversight. Whether it’s a CFO, an experienced advisor, or a strong board, investors want to see that someone is thinking about financial strategy beyond just fundraising.

A startup developing a novel gene-editing therapy might have raised seed funding with a founding team of scientists and academic advisors. But by Series A, investors will expect to see a business development lead working on pharma partnerships, a regulatory expert planning for FDA discussions, and a stronger financial structure to manage multimillion-dollar funding.

Hiring at this stage isn’t just about filling roles—it’s about showing investors that the company understands what it takes to scale. The best Series A biotech startups don’t just have a great idea—they have a team that’s ready to turn that idea into a long-term success.

With the right team in place, the next challenge is securing the investors who will back that vision. That requires a clear, strategic approach to fundraising.

Crafting a Series A Fundraising Strategy

Raising a Series A round requires more than a great pitch—it demands a structured, strategic approach to investor outreach, relationship-building, and deal execution. Unlike seed-stage fundraising, where rounds often come together in a more flexible or opportunistic way, Series A investors expect a disciplined process that signals a company is ready to scale.

To run an effective fundraising strategy, biotech startups should focus on three core areas:

1. Targeting the right investors

Not all investors fund Series A biotech startups, and even within life sciences investing, there are major differences in focus. Some VCs specialize in therapeutics, diagnostics, or digital health, while others fund platform technologies, AI-driven drug discovery, or tools for research labs.

How to identify the right investors:

• Look for Series A-focused VCs with experience backing biotech or life sciences startups at similar stages.
• Analyze their portfolio companies—do they invest in companies with similar regulatory or commercialization timelines?
• Avoid firms that only fund later-stage startups or those with a completely different investment thesis.

For example, a startup working on a next-generation CRISPR therapy should target biotech VCs with experience funding early-stage gene editing companies, not generalist investors who primarily back SaaS or fintech.

2. Building investor relationships before fundraising

Investors rarely write checks after a first meeting. They prefer to track companies over time, seeing how founders execute on their milestones. That means fundraising should begin long before a startup is officially raising a round.

How to build early investor interest:

• Attend biotech industry events and conferences where investors are scouting for new opportunities.
• Leverage existing advisors, accelerator programs, and other founders for warm introductions.
• Engage with investors on LinkedIn by commenting on their insights, sharing progress updates, or participating in discussions.

A startup developing an AI-powered diagnostic tool might begin investor conversations by sharing research findings, presenting at industry panels, and casually updating investors on progress. By the time they officially start raising, investors have already followed their growth and traction.

3. Managing a structured fundraising process

Once a startup begins raising Series A, founders should treat it like a well-managed sales process—not an open-ended search for funding. Investors expect startups to operate with clear timelines, a focused investor list, and a strong narrative that builds momentum.

Best practices for running a Series A process:

• Set a clear timeline. Raising capital can take six to twelve months, but stretching it out too long can weaken momentum.
• Prepare all investor materials before outreach. Have a pitch deck, data room, financials, and regulatory strategy fully prepared before taking investor meetings.
• Create competitive tension. Talking to multiple investors at once helps founders maintain leverage and avoid drawn-out negotiations.

A biotech startup working on a novel immunotherapy might start by engaging with 10-15 carefully selected VCs, running parallel conversations, and moving interested investors toward term sheet discussions within a set timeframe.

A disciplined approach leads to better funding outcomes

Biotech startups that successfully raise Series A funding don’t do it by chance—they plan strategically, build relationships early, and run a well-structured process. Investors want to back companies that approach fundraising with the same level of discipline they bring to R&D, operations, and commercialization.

By taking a structured approach to targeting investors, nurturing relationships, and managing the raise efficiently, startups can maximize their chances of securing Series A funding from the right partners. But even with a strong strategy, common mistakes can still derail a fundraising process, making it crucial for founders to know what to avoid.

The Bottom Line: Raising Series A Is About Execution, Not Just Vision

Raising a Series A is about proving to investors that a biotech startup isn’t just a great idea—it’s a company that can scale and succeed in the market. Investors at this stage are looking for momentum, traction, and the ability to execute, not just promising science.

Biotech founders who succeed in raising Series A funding have:

• A proven product or technology that is advancing toward clinical trials or commercialization.
• A solid team with the experience to handle the complexity of scaling a biotech company.
• Strategic partnerships or early revenue that de-risks the investment.
• A clear regulatory path that demonstrates understanding of what’s needed to bring the product to market.

Ultimately, preparation, strategic execution, and a well-managed process are what set startups apart. It’s not about luck—it’s about showing investors that the company has the track record, the team, and the strategy to succeed at the next level.

By focusing on these key areas, founders can enter Series A with confidence, knowing they’ve built the foundation for the next stage of growth.

With Series A funding secured, the next phase is about turning the investment into real business milestones: scaling operations, advancing clinical trials, and expanding market reach. This transition from early-stage to high-growth is where biotech startups make their biggest impact—and where their Series A investors will expect them to prove their ability to execute on a large scale.