The pursuit of groundbreaking innovation in advanced therapeutic medicinal products (ATMPs) is a high-stakes endeavor, particularly for early-stage biotech startups aiming to secure vital investment. At Terrapin’s recent Advanced Therapies conference, held at London’s ExCeL Centre on March 17-18, 2026, leading investors convened to dissect the critical elements that separate burgeoning biotechs from those that falter in the challenging transition from proof-of-concept to commercialization—a journey often termed the "valley of death." The consensus among seasoned financiers highlighted a trifecta of essential components: robust early planning, unwavering adaptability, and the cultivation of deep trust with investors.
The conference, a prominent fixture on the biopharmaceutical calendar, brought together a curated selection of venture capitalists, angel investors, and strategic corporate partners with founders and executives at the forefront of ATMP development. Against a backdrop of increasing investor interest in the sector, evidenced by a significant 70.9% surge in total venture financing deal value between Q2 and Q3 of 2025, as reported by GlobalData, the discussions underscored the intense competition for capital. Furthermore, GlobalData’s "State of the Biopharmaceutical Industry 2026" report indicated a positive shift in sentiment, with 39% of respondents expressing optimism or strong optimism regarding biotech funding recovery in the coming year—a 24% increase from May 2025. This burgeoning optimism, however, does not diminish the rigorous scrutiny startups face.
Data and Early Planning: The Bedrock of Investment
A recurring theme throughout the conference was the paramount importance of scientifically sound data. Ilya Yasny, a partner at LanceBio Ventures, articulated a clear investment thesis: "We primarily look to invest in biotechs with solid data that are addressing unmet needs." He elaborated on the critical role of data in de-risking a company’s program and augmenting its valuation. "Often, we see startups that are too lax with the data," Yasny observed. "Developing a drug means spending time and investors’ money in exchange for data and risk reduction, so every bit of information you’re obtaining from an experiment should de-risk your programme and increase the value of your company."
This sentiment was echoed by Matthieu Coutet, a partner at Sofinnova Partners, who emphasized the necessity of a comprehensive data package, intrinsically linked with a formidable intellectual property (IP) strategy. The ability to present a compelling narrative built on verifiable scientific evidence is non-negotiable. Investors are not merely funding ideas; they are investing in rigorously tested hypotheses with the potential for significant therapeutic impact.
Beyond the initial data generation, Yasny stressed the need for strategic foresight. "Startups should consider how they should position themselves in respect to their data package, and how they will differentiate from the standard of care, their competitors and also the failed competitors in the space," he advised. This requires a keen understanding of the competitive landscape and the ability to articulate a unique value proposition. Identifying the "most recent development story" in the field, including the current standard of care (SoC), and employing relevant positive controls in preclinical and clinical studies are crucial for providing investors with a clear benchmark against which to assess a drug’s potential efficacy and market standing.
Furthermore, both Yasny and Coutet advocated for a "start with the end in mind" philosophy. Proactive consideration of commercialization strategies from the nascent stages of development can significantly de-risk the entire process. This includes early engagement with critical functions such as chemistry, manufacturing, and controls (CMC), regulatory affairs, reimbursement pathways, and market access. These elements, often overlooked in the initial excitement of scientific discovery, are fundamental to translating a promising molecule into a commercially viable therapy. As a company progresses and accrues more data, its strategy must remain dynamic, evolving in response to new scientific insights and shifts within the competitive environment.
Building Trust: The Human Element of Investment
While compelling data forms the foundation, the cultivation of trust and transparent communication with investors is equally vital. Coutet drew an analogy between the relationship between a founder and an investor and the dynamic of mission control for a spacecraft, emphasizing the need for "radical transparency and communication." This means proactively engaging with potential investors, even before actively seeking funding. Establishing a dialogue, sharing both successes and challenges, and fostering an environment of open communication can build a resilient partnership.
"It’s really important to make clear decisions with investors, even on bad data, before it becomes a crisis," Coutet stated. This proactive approach allows for collaborative problem-solving and can strengthen the investor-founder relationship, potentially securing crucial support during difficult periods. Elena Beltrami, investment manager at Biotech Venture Advisors, reinforced this point during a panel discussion, urging companies to provide a realistic portrayal of their prospects and to avoid the detrimental practice of "overpromising and underdelivering," which can erode credibility and jeopardize future funding opportunities.
The ability of a startup to demonstrate integrity, reliability, and a commitment to open communication fosters a sense of partnership rather than a purely transactional relationship. Investors are not just looking for a return on investment; they are often seeking to back visionary teams they can rely on through the inevitable ups and downs of biotech development. This trust, built over time through consistent and honest engagement, can be the deciding factor when capital is scarce.
Adaptability: Navigating the Valley of Death
The inherent volatility of biotech research and development necessitates a high degree of adaptability. Yasny advised nascent companies to meticulously plan for both optimistic and pessimistic outcomes, emphasizing the need for contingency plans—"plan B or C"—in the event that a lead asset falters. The concept of "killer experiments," designed to yield definitive results early in the development cycle, allows companies to pivot or terminate unpromising avenues efficiently, thereby conserving resources and mitigating risk.
This principle of adaptability extends to the crucial process of pitching for investment. Jean-Philippe Combal, co-founder and CEO of gene therapy developer Vivet Therapeutics, highlighted that for companies in the ATMP space, there are often multiple strategic approaches to presenting their value proposition. He noted that depending on the investor’s specific focus and preferences, a company might choose to emphasize its lead asset or its broader platform technology. "There are two ways to pitch," Combal explained. "Depending on the investor, they may prefer one or the other, so it’s good to adapt your materials to the investor you’re pitching to." This tailored approach demonstrates an understanding of investor needs and a flexibility that is highly valued.
The ability to pivot in response to scientific setbacks, evolving market dynamics, or even shifts in investor sentiment is a hallmark of successful biotech companies. Those that can demonstrate resilience, a capacity for strategic reevaluation, and a willingness to embrace change are better positioned to overcome the obstacles inherent in drug development and secure the long-term funding required for success.
Implications for the Future of ATMP Investment
The insights shared at the Advanced Therapies conference provide a clear roadmap for ATMP startups seeking to thrive in a competitive funding environment. The emphasis on robust data, strategic early planning, transparent communication, and agile adaptability underscores the sophisticated demands of today’s biotech investment landscape. Investors are increasingly looking for well-rounded companies that not only possess strong scientific foundations but also demonstrate a mature understanding of the entire drug development lifecycle, from discovery to market access.
The continued growth in venture financing for the biotech sector, as indicated by GlobalData’s reports, suggests a sustained appetite for innovation. However, the conference discussions serve as a crucial reminder that potential alone is insufficient. Startups must actively cultivate the qualities that investors deem essential for long-term viability. By prioritizing rigorous scientific validation, strategic commercial foresight, authentic investor relations, and a commitment to adaptability, emerging biotech companies can significantly enhance their prospects of navigating the challenging terrain of the "valley of death" and ultimately delivering life-changing therapies to patients. The dialogue at the conference suggests that the future of ATMP investment will continue to favor those ventures that exhibit a comprehensive blend of scientific excellence and strategic business acumen.
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