Navigating the valley of death: a how-to from an investor’s perspective

In a crowded biotech scenery afloat of potential, particularly successful precocious therapeutic medicinal products (ATMPs), companies indispensable differentiate themselves from their competitors to unafraid much-needed superior from investors.

This tin beryllium challenging for biotech companies successful the space, which sees immoderate autumn unfortunate to the “valley of death”, wherever companies neglect to modulation from proof-of-concept to commercialisation.

While navigating the vale of decease tin beryllium a challenging feat, information suggests that investors are inactive engaged with the sector. This is evidenced by a 2025 study from GlobalData, which reveals that the biotech manufacture saw a 70.9% boost successful full task financing woody worth betwixt Q2 and Q3.

Meanwhile, a survey conducted for GlobalData’s State of the Biopharmaceutical Industry 2026 study recovered that 39% of respondents are either optimistic oregon precise optimistic connected their outlook for biotech backing betterment implicit the adjacent twelvemonth – a worth that accrued by 24% from May 2025.

At Terrapin’s Advanced Therapies conference, which is being held astatine the ExCeL Centre successful London connected 17 and 18 March, investors dived into what they look for erstwhile allocating superior to a startup, and however companies tin unafraid its attraction implicit competitors crossed the existent backing landscape.

In a session, LanceBio Ventures spouse Ilya Yasny noted that helium chiefly looks to put successful biotechs with coagulated information that are addressing unmet needs. “Often, we spot startups that are excessively lax with the data. Developing a cause means spending clip and investors’ wealth successful speech for information and hazard reduction, truthful each spot of accusation you’re obtaining from an experimentation should de-risk your programme and summation the worth of your company,” Yasny said.

Partner astatine Sofinnova Partners, Matthieu Coutet, shared akin sentiments successful his session, stressing the value of a robust information package, arsenic good arsenic a beardown IP strategy.

In speech with Pharmaceutical Technology, Yasny added that, erstwhile a institution has the data, it should accommodate its strategy astir it. “Startups should see however they should presumption themselves successful respect to their information package, and however they volition differentiate from the modular of care, their competitors and besides the failed competitors successful the space,” helium commented.

Yasny added that companies should besides place the “most caller improvement story” successful the space, specified arsenic the existent modular of attraction (SoC), and usage applicable affirmative controls to let investors a wide representation of however the cause stacks up compared with the golden modular already connected the market.