Fundraising: Why relationships matter more than ever
If you ask founders what determines whether they raise capital, most will give you the same answer: great science, compelling clinical data, a large market opportunity and a sensible valuation. For a long time, I would have given exactly the same answer, but I no longer do. After years of working with biotechnology companies, I have come to believe that those factors determine whether a company deserves investment, but they do not necessarily determine whether it gets the opportunity to be evaluated in the first place. Here’s why.
Before an investor analyses the science, reviews the clinical data or challenges the valuation, one decision has already been made: Is this company worth my time?
Very often, that decision has very little to do with the pitch deck itself. Trust, credibility and the quality of the introduction have often shaped that decision long before the first slide appears.
I have seen remarkable science struggle to attract attention simply because the company had no access to the right network.
Investors are not looking to be convinced; they are looking to reduce uncertainty. Relationships cannot replace strong science or robust data, but they reduce uncertainty far more quickly than even the best presentation.
The power of the introduction
A trusted introduction changes the entire dynamic. Instead of asking, “Why should I spend time on this company?”, the investor begins with a different question: “If someone I trust believes this opportunity deserves my attention, what might I be missing?” That is a completely different starting point.
A well-known investment organization once asked me to present a company directly, despite another intermediary already being engaged. It wasn’t about exclusivity or fees; they trusted my judgment after years of my consistently bringing them quality opportunities and wanted my perspective first-hand.
That experience fundamentally changed my understanding of what creates value in business development. The value I bring has never been a database of investors. Databases can be purchased. Trust cannot.
It is built through years of conversations, successful introductions, honest feedback and professional consistency. Once it exists, it becomes one of the most valuable assets in fundraising.
Consistency is the key
I have also learned that relationships are not built for a single financing round. The strongest relationships continue long after a deal has closed.
Fundraising should therefore never be viewed as a series of isolated transactions. It is a long-term process of building credibility. Every interaction matters. Every meeting, every follow-up email and every introduction contributes to how founders, advisers and companies are perceived long before the next fundraising process begins.
Networking has changed as well. Years ago, networking often meant attending conferences, exchanging business cards and hoping someone remembered your name. Today, relationships require consistency. Investors often follow companies for months, sometimes years, before making an investment. They observe how management communicates, whether milestones are delivered, how setbacks are handled and whether expectations are managed honestly. Trust is no longer built during a single meeting.
Ultimately, I believe science creates opportunity, execution creates value, trust creates confidence and confidence is what unlocks capital.
Valeriia Simanovskaia
About the author: Valeriia Simanovskaia is the founder and CEO of BioBrokers, an independent advisory firm at the intersection of science, capital and strategic transactions. She advises life sciences companies on fundraising, licensing, M&A and strategic growth, connecting innovators with investors, pharmaceutical companies and strategic partners worldwide.
