Selecting the Right VC Partner
At Sky Valley Advisors, we don’t just help biotech founders create compelling investor decks— we partner with them to develop a thoughtful, targeted investor engagement strategy.
Early-stage investors shape more than your cap table—they shape your story. When the time comes to go public, having top-tier VC firms can serve as validation for quality institutional investors who are evaluating your IPO.
Reputation, network, and ongoing support can make the difference in attracting long-term, fundamental investors who will back your company beyond the IPO. Selecting the wrong partner can cost time, control, and even the future of your company.
Here are 5 key questions every biotech founder and CEO should ask before signing a term sheet:
1. Do they understand the science—and the risk? What is the investors’ track record in my space? Do they fully understand the clinical problem you are solving, the risks, and regulatory complexity?
2. Can they add strategic value beyond capital? What connections do they have in the regulatory space, with pharmaceutical partners/buyers, talent pools? What is the investors’ track record in supporting their portfolio companies operationally and strategically? Ask to speak with other founders’ they have backed!
3. Are they aligned with your stage and timeline? Investor focus varies—some back early-stage innovation, others look for assets closer to the clinic or already de-risked. Know where you stand—and whether their fund lifecycle matches your roadmap. Are they willing to reserve follow-on capital for future rounds?
4. What is their vision for exits—and control? Understand how they think about M&A, IPOs, licensing, and governance. Avoid mismatches on board control, timelines, or liquidation preferences. What is their typical holding period? How do you think about exit strategy, and what level of involvement do you expect?
5. Do they back “you” and “your team”—or just the data/idea? Investors who invest in founders, not just assets, are the ones who will support you through the tough times.
At Sky Valley Advisors, we help early-stage biotech companies evaluate the right partners who will set you up for future success.
If you're preparing to fundraise, or re-evaluating your capital strategy, we would love to help.
Schedule an intro call by e-mailing us at: contact@skyvalleyadvisors.com
Learn more at www.skyvalleyadvisors.com