Biotech fundraising: the room behind a financing round
A biotech raise is decided on the science, the IP and the plan to reach the next value point. Lead with a clear data package and the regulatory plan, keep raw data and manufacturing detail for investors who reach diligence, and record who saw unpublished results.
- 30 daysAn IND goes into effect 30 days after FDA receives it unless a clinical hold is imposed (21 CFR 312.40)
Folder index
- 01 Overview Deck, pipeline chart, use of proceeds tied to milestones.
- 02 Science Mechanism, target validation, publications, scientific advisory board.
- 03 Preclinical data Pharmacology, toxicology summaries, study reports for diligence.
- 04 Clinical Protocols, data summaries, investigator brochure if a program is in the clinic.
- 05 Regulatory FDA meeting minutes, IND status, designations granted.
- 06 CMC and manufacturing Process, CDMO agreements, supply plan.
- 07 IP Patent schedule, filings, freedom to operate analysis, invention assignments.
How this raise works
Biotech companies raise from specialist venture funds, corporate venture arms of pharma companies and, later, crossover funds that also buy public shares. Each round usually funds a defined step: an IND filing, a first clinical readout, a pivotal study. Investors want to see the cash runway match that step with some margin.
Scientific diligence is detailed. Reviewers, often with outside scientific advisers, look at the mechanism, the preclinical package, any clinical data, the target product profile and the competition. Under FDA rules an IND goes into effect 30 days after FDA receives it unless the agency places a clinical hold, so the IND timeline is often a key date in the plan. Manufacturing (CMC) and the supply chain get more attention as programs near the clinic.
IP and licenses decide who owns the value. Many biotechs license their core asset from a university or another company, and investors read those license agreements closely: field, territory, milestones, royalties, sublicensing and diligence obligations. Unpublished data and patent filings that are not yet public need tighter controls than anything else in the room.
Best data rooms for this raise
The 16 rooms re-ranked with this raise's weights. Permission control carries the most weight here.
- Investor tracking 23%
- Permission control 27%
- Raise workflow 21%
- Investor onboarding 14%
- Cost of a raise 14%
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Full deal room with AI, a listed price and a 14-day free trial.
Price $149 a month Trial 14-day free trial Features 8 of 12 listed -
Long-running M&A platform with layered permissions and fast support.
Price Priced on request Trial Free trial available Features 9 of 12 listed -
Bank-grade platform for large processes, with AI and a mobile app.
Price Priced on request Trial Demo on request Features 10 of 12 listed -
Deal room with AI and readiness tools for preparing a process.
Price Priced on request Trial Free trial available Features 8 of 12 listed -
One of the oldest deal rooms, common on bank-led transactions.
Price Priced on request Trial Demo on request Features 8 of 12 listed -
Easy, reliable deal room favored by mid-market advisers.
Price Priced on request Trial Free trial available Features 7 of 12 listed -
Simple flat-rate deal room with signing and Q&A.
Price $250 a month Trial Free trial available Features 8 of 12 listed -
Deal room with a listed monthly price and an open API.
Price $299 a month Trial Free trial available Features 7 of 12 listed -
European deal room strong in real estate, with AI features.
Price Priced on request Trial Demo on request Features 8 of 12 listed -
Security-focused deal room with detailed permission controls.
Price Priced on request Trial Demo on request Features 7 of 12 listed
Places 11 to 16: Box (7.2), ShareVault (7.1), DealRoom (7.0), Venue by DFIN (6.3), Digify (6.1), DocSend (5.7)
Folder index for the room
A starting index for this raise. Number the folders so the order survives exports and investors can cite them in questions.
- 01 OverviewDeck, pipeline chart, use of proceeds tied to milestones.
- 02 ScienceMechanism, target validation, publications, scientific advisory board.
- 03 Preclinical dataPharmacology, toxicology summaries, study reports for diligence.
- 04 ClinicalProtocols, data summaries, investigator brochure if a program is in the clinic.
- 05 RegulatoryFDA meeting minutes, IND status, designations granted.
- 06 CMC and manufacturingProcess, CDMO agreements, supply plan.
- 07 IPPatent schedule, filings, freedom to operate analysis, invention assignments.
- 08 Licenses and collaborationsIn-license and partnership agreements with key terms summary.
- 09 Corporate and capitalizationCharter, cap table, prior financing documents.
- 10 FinancialsBudget by program, runway, grants received.
- 11 Q&AScientific and business questions with approved answers.
Features this raise needs
| Feature | Why | Ellty | iDeals | Datasite | Ansarada | Intralinks | Firmex |
|---|---|---|---|---|---|---|---|
| View-only files | Files can be read but not saved or printed, and the setting can change mid-raise without a new invite. | ||||||
| Dynamic watermarks | Stamps the reader and a timestamp over every page, so a PPM that leaks carries its source with it. | ||||||
| Investor activity log | A per-investor record of opens, pages and minutes, which tells the IR team who is in diligence and who stalled. | ||||||
| Q&A module | LPs and lead investors post questions on a file; the deal team routes each one, drafts a reply and decides who sees it. | ||||||
| Built-in redaction | Masks fee splits, investor names or personal data in place, with no edited duplicate to keep in sync. |
Setting up the room
- 01
Tie the raise to a milestone
Show what the money buys: the IND, the first readout or the pivotal study, with runway past it.
- 02
Summarize before you share raw data
Open data summaries first and full study reports only to investors in diligence.
- 03
Protect unpublished results
Use view-only access and watermarks on unpublished data and patent filings not yet public.
- 04
Summarize each license
Add a one-page term summary in front of every in-license, covering field, milestones, royalties and sublicensing.
- 05
Give scientific advisers their own group
Investor-appointed scientific reviewers get access to the science folders only.
- 06
Log who saw what
Keep the activity record, which matters if a reviewer works with a competing program.
Common mistakes
- A raise sized to reach the milestone with no buffer for delay.
- Unpublished data downloadable by every investor in the first round of outreach.
- In-license terms that limit sublicensing, found by the lead late in diligence.
- CMC left vague for a program about to enter the clinic.
Calculators for this raise
Or take the four-question quiz and check the raise checklist.
Questions and answers
What do biotech investors look for in diligence?
The strength of the science, the data package, the regulatory path, manufacturing readiness, IP and licenses, the team and whether the round funds a clear value milestone.
What is a crossover round?
A late private round that includes funds which also invest in public stocks, often raised in the year or two before an IPO.
Should raw clinical data be in the data room?
Summaries go in early; full datasets and study reports go to investors in confirmatory diligence, view-only where possible.