Rewiring Biotech Funding: Takeaways From Capital for Cures, Milan

As biotechs face mounting pressure to do more with less amid macro and regulatory uncertainty, leaner venture rounds and rising development costs, the question of how to fund breakthrough science has never felt more urgent. In Milan, SS&C Intralinks and Slate Mountains Capital hosted the latest Capital for Cures summit to tackle that challenge head-on.

Part of an ongoing series that began in Amsterdam and Basel, the summit brought together biotech founders, investors, family office leaders and strategists to explore what’s working — and what’s not — in early-stage life sciences funding. While conversations ranged from artificial intelligence (AI) and platform innovation to the rise of patient-led ventures, a central theme emerged: to translate discovery into impact, the industry must rethink how capital is formed and deployed.

From big bets to broader portfolios

Sebastian Gensior, founder of Capital for Cures AG, opened the event by calling for a mindset shift, stating “the industry needs more shots on goal.” In a climate where traditional funding is harder to access and investors are more selective, every missed opportunity could mean another therapy left on the shelf. To avoid such outcomes, biotech leaders must embrace a portfolio mindset supported by flexible, scalable and sustainable funding.

Gensior spotlighted royalty-based deals, intellectual property (IP)-backed financing and diversified capital sources as practical tools for closing the gap between scientific promise and patient access. These structures help de-risk investor exposure, generate non-dilutive cash flows for early-stage companies and extend the financial runway for innovation in underserved disease areas.

Patient capital comes with caveats

Diversifying funding models requires a nuanced understanding of different capital sources. Adina Krausz of InnoSource Ventures challenged founders to think more strategically about capital alignment when working with family offices, explaining that while patient capital is available, it’s not a silver bullet.

“Too often, startups pitch family offices as if they’re venture funds or grant agencies, but they’re neither,” said Krausz. “What’s needed is a deep understanding of the capital source — and some humility.” She emphasized that understanding an investor’s structure, return profile and philanthropic posture is essential to a successful partnership. Assuming all family offices operate the same way or expecting near-term liquidity from a mission-driven fund can quickly derail a partnership.

When science isn’t enough

Misalignment between founders and investors can also be an obstacle in the rare disease innovation space, according to Celeste Scotti, M.D., Ph.D, of Fondazione Telethon. He highlighted a troubling pattern: too many therapies for rare diseases are shelved not because they fail scientifically, but because they don’t fit the commercial mold.

Faced with limited interest from both large pharmaceutical companies and traditional venture capital (VC), Fondazione Telethon launched its own internal ventures to bring these therapies to patients. Scotti’s call to action was unequivocal: when conventional capital falls short, new financing channels must be built, combining grants, early-stage capital and alternative mechanisms that prioritize outcomes over scale.

Accelerating drug discovery

While capital strategies are evolving, some of the most dramatic breakthroughs are happening at the molecular level. Ricardo Gaminha Pacheco of Insilico Medicine shared how AI is compressing drug discovery timelines for the firm. Since its launch in 2019, the company has advanced more than 30 drug candidates, with seven already in clinical stages. By using generative AI and multiomics to identify novel targets and optimize molecule design, Insilico has significantly shortened preclinical cycles.

Still, Pacheco was measured: “We’ve had a 100 percent success rate so far in preclinical validation, but that doesn’t mean we’ll never fail.” Even in an AI-driven environment, scientific rigor, validation and strategic fit remain paramount.

What separates deals that close from those that don’t?

Translating promising science and creative capital models into actual funding outcomes still hinges on successful deal execution. SS&C Intralinks’ Roland Petrenkó offered a data-driven perspective on why preparation — in addition to market timing — is proving to be a key differentiator. According to Intralinks platform data, successful life sciences transactions typically involve more than eight months of preparation, compared to less than three months for unsuccessful deals.

In a landscape where investors are flooded with proposals, only well-positioned, clearly articulated ventures are breaking through. Petrenkó encouraged startups to treat the fundraising journey as relationship building, not pitching: “Know your counterpart and tailor your ask — don’t lead with the term sheet.”

He also emphasized the importance of choosing the right technology partner to showcase your offering. In a competitive capital-raising environment, how you present your IP, due diligence materials and commercial roadmap matters more than ever.

Unlocking Italy’s biotech potential

One of the liveliest discussions focused on Italy’s role in the global innovation economy. Despite world-class scientific talent and strong academic research, Italian biotech remains underrepresented in deal flow. Speakers pointed to structural barriers — particularly in university tech transfer, where academic incentives still favor publication over commercialization.

But there was optimism too. With the right incentives, infrastructure and cross-border collaboration, Italy could become a meaningful source of biotech breakthroughs. As one participant put it, “The science is already here. What’s missing is a better path from lab to market.”

Continuing the conversation

As the event closed, attendees reflected on how Capital for Cures is helping rewire the biotech ecosystem. By convening stakeholders who often operate in silos, this initiative is helping create the infrastructure for long-term, values-aligned innovation. Stay tuned, as we look forward to continuing the conversation and sharing takeaways from our next stops in Frankfurt and London.

To learn more about the key trends driving capital deployment and exit activity across the life sciences sector, read our newly released report, The New Era of Life Sciences Dealmaking.