Answer extracted from the The Conference Room with Simon Lader podcast — listen to the full episode below.
How should biotech founders approach fundraising and build trust with investors?
Trust building and finding aligned investors matter far more than speed in biotech fundraising. Rather than accepting funding too quickly, founders should conduct numerous coffee talks, test pitches repeatedly, and develop a system to filter what matters to both parties—because the number one job of a founder CEO is raising capital while maintaining relationships they won't regret later.
Why urgency can destroy biotech deals
Biotech companies face a unique financial pressure that most other startups do not. Funding requirements are far steeper—not just for research equipment and genome sequencing, but especially for talent with higher payroll expectations in specialized science roles. This constant tension between the need to generate revenue quickly and the need to avoid damaging long-term partnerships is what Zhang emphasizes as the central paradox of biotech fundraising.
Rushing into investor relationships out of desperation often leads to misalignment later. As Zhang explains in the episode, founders who prioritize speed over fit end up working with backers whose incentives, timelines, or expectations fundamentally conflict with the science itself.
The coffee-talk method: Testing before committing
Zhang advocates for a deliberate, low-pressure approach to investor conversations. Rather than formal pitch decks from day one, she recommends conducting numerous casual coffee talks where both founder and investor can speak candidly about goals, risk tolerance, and vision alignment. These conversations serve as a filter on both sides.
The founder learns whether an investor truly understands biotech timelines, scientific uncertainty, and the regulatory landscape. The investor gauges whether the founder has the resilience, clarity of purpose, and adaptability required to navigate a multiyear, capital-intensive journey. This mutual evaluation happens naturally in informal settings before either party commits.
Pitching repeatedly—to different investors, in different formats—also refines the founder's own thinking. Zhang's story shows that each conversation shapes how she articulates her science and its value, which strengthens her positioning for genuine partners later.
"This drive in me to deliver world-class science and translate that into something useful and practical for everyday people is so strong that I think that will motivate me to learn new skills, to meet new people, to get on stage that I'll be nervous for, and raise funding."
Sherry Zhang — Executive Director of External Strategy and Partnerships at Buck Institute for Research on Aging, and founder of Genopalate. Zhang is a first-generation immigrant scientist from China who arrived in the U.S. with three bags and $3,000. She holds a PhD in molecular biology from Marquette University and founded Genopalate, a personalized nutrition company based on DNA analysis that has served more than 170,000 customers. She now leads AI-driven approaches to extending human lifespan at Buck Institute.
Building a filtering system, not just a pipeline
The key insight from Zhang's experience is that investor selection is as rigorous as scientific methodology. Founders should establish clear criteria for what an aligned investor looks like: Do they understand delayed ROI? Do they respect the founder's scientific judgment? Do they add value beyond capital—networks, technical expertise, regulatory guidance?
This filtering happens through conversations, reference checks with past founders, and observing how an investor responds to tough questions or bad news. A detailed exploration of this selection process is available in Zhang's full episode, where she describes how she evaluates investor fit for her current work in longevity science.
The payoff for this deliberate approach is significant: founders avoid being trapped in misaligned partnerships that drain energy, slow progress, or force compromises on science quality. They also build a network of investors who become genuine partners in the long, uncertain journey of biotech innovation.
See also
What drives a scientist to transition from academic research into founding a biotech company?
Dr. Sherry Zhang identified two defining moments: discovering that FTO gene variants significantly impact weight loss outcomes and wanting to translate that scientific insight into a practical product that could help everyday people make better nutrition decisions based on their genetics.
What is the philosophical principle behind follow-up approach regarding time and deal progression?
It's not time that kills deals—it's lack of proximity. Deals often take time, and founders shouldn't get anxious or write off investor relationships too quickly. Staying present and engaged keeps the door open.
How should follow-up messaging differ from standard pitches to feel more valuable and human?
Use a non-assumptive approach: start by expressing genuine uncertainty about whether an opportunity would interest the investor, place the compelling offer in the middle, and maintain a human, conversational tone rather than transactional pressure.
Key takeaways
- Biotech founders face steeper funding needs than most startups due to talent costs, lab equipment, and genome sequencing, creating urgency that can damage long-term relationships if not managed carefully.
- Conduct numerous informal coffee talks with potential investors before formal pitches to test mutual alignment on timelines, risk tolerance, and scientific vision.
- Develop a rigorous filtering system for investors based on their understanding of biotech timelines, respect for scientific judgment, and ability to add value beyond capital.
- The primary job of a founder CEO is raising capital while building trust—avoiding investor relationships that will create regret later is as important as closing the deal.