In a crowded biotech landscape full of potential, especially in advanced therapeutic medicinal products (ATMPs), companies must differentiate themselves from their competitors to secure much-needed capital from investors.
This can be challenging for biotech companies in the space, which sees some fall victim to the “valley of death”, where companies fail to transition from proof-of-concept to commercialisation.
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While navigating the valley of death can be a challenging feat, data suggests that investors are still engaged with the sector. This is evidenced by a 2025 report from GlobalData, which reveals that the biotech industry saw a 70.9% boost in total venture financing deal value between Q2 and Q3.
Meanwhile, a survey conducted for GlobalData’s State of the Biopharmaceutical Industry 2026 report found that 39% of respondents are either optimistic or very optimistic on their outlook for biotech funding recovery over the next year – a value that increased by 24% from May 2025.
At Terrapin’s Advanced Therapies conference, which is being held at the ExCeL Centre in London on 17 and 18 March, investors dived into what they look for when allocating capital to a startup, and how companies can secure its attention over competitors across the current funding landscape.
Data and early planning take centre stage
In a session, LanceBio Ventures partner Ilya Yasny noted that he primarily looks to invest in biotechs with solid data that are addressing unmet needs. “Often, we see startups that are too lax with the data. Developing a drug means spending time and investors’ money in exchange for data and risk reduction, so every bit of information you’re obtaining from an experiment should de-risk your programme and increase the value of your company,” Yasny said.
Partner at Sofinnova Partners, Matthieu Coutet, shared similar sentiments in his session, stressing the importance of a robust data package, as well as a strong IP strategy.
In conversation with Pharmaceutical Technology, Yasny added that, once a company has the data, it should adapt its strategy around it. “Startups should consider how they should position themselves in respect to their data package, and how they will differentiate from the standard of care, their competitors and also the failed competitors in the space,” he commented.
Yasny added that companies should also identify the “most recent development story” in the space, such as the current standard of care (SoC), and use relevant positive controls to allow investors a clear picture of how the drug stacks up compared with the gold standard already on the market.
Both Yasny and Coutet also recommend keeping the end in mind from the start, as identifying a commercial strategy early on can help de-risk the development process. Both investors highlighted the importance of early chemistry, manufacturing and control (CMC), regulatory, reimbursement and market access considerations.
A biotech’s strategy should also evolve as it garners more data, while remaining reactive to changes in the competitive environment around it, explained Yasny.
Building trust with investors remains crucial
While a biotech’s data package remains one of its most important assets, Coutet and Yasny also value when companies are transparent and continually engaged with them – even before seeking funding.
Coutet likened this to mission control upon a spacecraft, noting that relationships between a founder and a legal investor should have a similar dynamic – with “radical transparency and communication” at the forefront. “It’s really important to make clear decisions with investors, even on bad data, before it becomes a crisis,” Coutet commented. By doing this, Coutet says that companies can build better, more trusting relationships with the right investor, who may be able to bridge them in harder times, if needed.
In a panel discussion, Elena Beltrami, investment manager at Biotech Venture Advisors, recommended that companies focus on giving investors a realistic picture and avoid “overpromising and underdelivering”, which can often cause companies trouble down the line.
Adaptability as a bridge across the valley of death
When operating as a biotech startup, Yasny noted that companies in their infancy should always prepare for the best- and worst-case scenarios. This means all companies should have a “plan B or C” if a key asset fails.
One way to achieve this, he says, is through the use of killer experiments, which can allow companies to fail early and smart before heavily investing in development.
This adaptability concept also applies to the pitching process, noted Jean-Philippe Combal, co-founder and CEO of gene therapy developer Vivet Therapeutics, in a panel session. “There are two ways to pitch,” he said, referring to the lead asset or platform routes for companies developing ATMPs. “Depending on the investor, they may prefer one or the other, so it’s good to adapt your materials to the investor you’re pitching to,” Combal explained.
