Precision Over Presence in a Compressed Biotech Market

The final spring edition of the Capital for Cures summit concluded recently in Frankfurt, bringing together a cross-section of biotech innovators, digital health founders, investors and strategic partners. Set against a backdrop of rising biotech mergers and acquisitions (M&A) activity and constrained funding, the forum underscored the importance of clarity, preparation and building investor-centric narratives in healthcare innovation.

Founded by Sebastian Gensior, Capital for Cures was designed to foster deeper, more meaningful exchanges around funding and scaling healthcare solutions. Following earlier stops in Amsterdam, Basel, Milan and London, the Frankfurt event continued the initiative’s stated goal: to align capital with cures by creating environments that prioritize genuine dialogue over high-traffic networking.

“We constantly hear that this is one of the few events where people finally have time for in-depth conversations,” Gensior noted. “Unlike the crowded conference circuit, we focus on real connections.”

Tailored messaging as a strategic imperative

One of the recurring themes in Frankfurt was the importance of adapting communications to specific investor archetypes. While interest in healthtech and life sciences remains high, the expectation gap between founders and funders has widened in recent months.

Startups that succeed in the current environment are those that calibrate their narratives to reflect the strategic interests of targeted investors — whether that means readiness for scale or a credible exit path. It is no longer sufficient to present technical excellence alone, as investors increasingly expect market insight, evidence of stakeholder traction and a realistic path to value creation.

Data suggests this shift is more than anecdotal. Companies preparing for fundraising now spend an average of 8.2 months aligning regulatory, commercial and pitch readiness strategies to meet growing due diligence expectations. In practice, this translates into tailored materials that demonstrate capital efficiency and define measurable outcomes.

Digital health’s commercial reality check

Frankfurt also highlighted the persistent challenges facing digital health companies — particularly those navigating the transition from regulatory clearance to commercial sustainability. Although multiple national frameworks exist to support reimbursement (such as DiGA in Germany and PECAN in France), adoption remains uneven.

Products that are clinically sound and technically sophisticated often fail to secure consistent coverage or to change physician prescribing habits. Many face delays in billing code integration, physician onboarding or insurer recognition. Too often, reimbursement approval is seen as the endpoint, rather than the beginning of a complex market entry strategy.

Direct-to-consumer approaches have similarly struggled in systems where patients expect healthcare to be free at the point of use. As a result, digital health companies are increasingly pivoting toward B2B licensing, international expansion and hybrid business models that bypass conventional reimbursement pathways altogether.

Despite the systemic constraints, solutions that integrate into clinical workflows and offer measurable savings or operational efficiencies continue to attract institutional interest. The Frankfurt summit reinforced that digital health innovators must prepare for reimbursement delays, stakeholder resistance and pricing volatility from the outset.

Partnership readiness and the role of M&A

I often remind founders of the importance of partnerships and acquisition readiness in today’s deal-driven landscape. They have to speak M&A fluently. Even early-stage startups must have clarity around their strategic value and potential role in a larger ecosystem.

With M&A activity rebounding in mid-2025, investor and acquirer expectations have shifted. Transactions increasingly reward firms that can demonstrate both scientific credibility and operational maturity.

Recent deals underscore this point. In May, Sanofi acquired Vigil Neuroscience for USD 470 million to strengthen its neurology pipeline. Eli Lilly followed with a USD one billion acquisition of SiteOne Therapeutics, expanding its presence in non-opioid pain management. In June, BioNTech consolidated its mRNA platform by acquiring CureVac in a USD 1.25 billion all-stock transaction. All three moves represented targeted integrations within broader growth strategies.

This trend is not limited to therapeutics. In the digital health space, Huma’s acquisition of Aluna added FDA-cleared respiratory monitoring technology and an established user base to its care platform. Notably, the deal was accompanied by new growth funding earmarked for further acquisitions, illustrating how M&A is now a central tool in building integrated healthcare platforms.

Capital efficiency and the runway compression effect

Throughout the event, speakers and attendees acknowledged a broader structural shift — the compression of financial runway across early- and mid-stage ventures. The days of 24-month planning cycles and “growth at all costs” are over. Taking their place are tighter timeframes, increased scrutiny on unit economics and a renewed emphasis on shareholder value.

Startups are under pressure not only to extend their runway through disciplined spending but also to refine their capital strategies. This includes assessing whether to prioritize strategic partnerships, licensing deals or smaller interim raises in lieu of traditional Series A or B rounds.

These capital constraints are driving greater selectivity in the formation of partnerships. Investors and corporates are increasingly backing ventures that demonstrate cross-functional readiness — where regulatory, clinical and commercial tracks are clearly aligned. The ability to articulate how capital will convert into value — and over what timeframe — has become a defining feature of successful fundraising.

From insight to impact

Capital for Cures continues to distinguish itself not just through the caliber of attendees, but through the structure of its events. With fewer panels and more working conversations, the series facilitates the kind of exchanges that often get lost in larger industry gatherings.

What began as a niche gathering for healthcare dealmakers is now developing into a recognized platform for capital deployment across healthtech, biotech and medtech. For founders navigating a volatile landscape, and investors seeking more than just promising science, Capital for Cures offers a framework for meaningful engagement.

The Frankfurt edition reinforced what had already become evident in London and other cities — that trust and transparency underpin every effective transaction. As healthcare innovation grows more complex and investors become more selective, clarity of vision, messaging and execution has emerged as a key strategic asset.

As the series pauses for summer, its next chapter will focus on building out deeper thematic engagements and fostering institutional partnerships. The core objective remains unchanged: to support healthcare innovation by aligning investors, founders and strategies around shared objectives and realistic expectations.

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.