On April 30, MSQ Ventures hosted a lively and timely conversation as part of its "Bio Around the World" series: Successful Fundraising in Today’s Market. Moderated by Echo Hindle-Yang, Founder and CEO of MSQ Ventures, the panel brought together investors and biotech executives navigating today’s complex fundraising landscape. The discussion focused on global biotech trends, regulatory shifts, investor sentiment, and practical advice on how companies can stay resilient. 

Joining the conversation: 

• Fay Xing, Partner at Panacea Venture 

• Katherine Xu, Partner at Decheng Capital 

• Marc Voigt, CEO of Immutep 

• Roland Helfenstein, CFO of Numab Therapeutics 

How is today’s environment shaping biotech investment and strategy? 

Fay Xing kicked off with concern over regulatory instability. The FDA has lost 19% of its workforce, risking long-term expertise that biotech companies rely on for drug approvals. The NIH is also seeing cuts, threatening the talent pipeline. While her portfolio has not yet experienced delays, she’s watching the situation closely. Fay emphasized that this regulatory uncertainty could seriously sideline innovative programs. 

Marc Voigt agreed and added that the downturn started well before 2024. Post-COVID, too many early IPOs lacked maturity, leading to disappointment. Add in geopolitical risk and the BioSecure Act, and it’s a challenging environment. Still, global operations and strong fundamentals keep Immutep moving forward. 

Roland Helfenstein noted that the FDA’s slowdown might push more clinical trials to Europe. That could influence where capital flows and impact company burn rates. If trials take longer, that means more cash is needed, and investors will take notice. 

Katherine Xu provided a sobering view from public markets. Biotech stocks are down nearly 30% since late 2023, and macro forces like tariffs are adding pressure. She warned that innovation could suffer if cuts to early research and training persist. 

What are investors focusing on now? 

Katherine Xu said their approach remains steady: look for high-impact science, strong teams, and good valuations. With valuations correcting, it might even be a good time to invest selectively. 

Fay Xing agreed but said the bar has been raised. Investors want to see strong insider commitment, early partnerships with strategics, and a clear regulatory path. She noted that public market exits remain tough, and only 2% of M&A deals get done in early-stage biotech. New models like licensing or hybrid structures are gaining traction. 

How are biotech companies adjusting their fundraising playbooks? 

Marc Voigt shared that Immutep raised AUD 100 million in 2023 and supported by a strategic collaboration with Merck. His team runs lean budgets and focuses on efficiency. He stressed that companies should avoid unnecessary spending and stay laser-focused on advancing core programs. 

Roland Helfenstein echoed the point. Numab raised USD 60 million earlier this year with full insider support. He emphasized speeding up timelines, showing solid data, and building trust with investors through regular, transparent engagement. 

Are cross-border investments still viable in this geopolitical climate? 

Fay Xing highlighted that while geopolitical risk is real, Chinese innovation continues. Despite a sharp drop in capital access, Chinese biotechs still offer global potential, often at more favorable valuations. 

Katherine Xu reflected on how China evolved from copycat drugs to globally competitive innovation. Decheng still invests through local RMB funds and helps companies expand globally by licensing ex-China rights. 

Marc Voigt took the long view. Globalization has ebbed and flowed throughout history, but medical innovation thrives on international collaboration. He expects global supply chains to remain essential. 

Roland Helfenstein said Numab has been cautious with China exposure but sees continued opportunity elsewhere, especially in Japan and Europe. He advised companies to monitor cap tables and legal risks involving overseas investors. 

What sets today’s successful fundraising stories apart? 

Fay Xing and Katherine Xu both pointed to optionality, capital efficiency, and partnerships as key factors. Successful companies are not only managing cash wisely but also creating multiple paths forward. Having a strategic deal in place often makes it easier to raise capital. 

Final advice to biotech companies: 

Katherine Xu: Preserve cash. Seek non-dilutive funds. Work closely with your investors, they often have more resources than you think. 

Fay Xing: Choose investors who can offer more than just money. Support on operations, hiring, and regulatory planning is invaluable. 

Marc Voigt: Execute with focus. Market conditions may be tough, but capital is still available for great science. 

Roland Helfenstein: Avoid surprises. Communicate often and honestly. Good stewardship earns investor loyalty. 

Takeaway: 

The panelists agreed: uncertainty is high, but biotech companies can still thrive by focusing on fundamentals, fostering partnerships, and staying disciplined. Innovation does not stop in a downturn, but it requires strategy, grit, and collaboration to break through.