Short answer: a round in health, biotech or medtech is prepared like any other, but it is decided by different milestones: regulatory (CE marking, approval by the AEMPS, the EMA or the FDA), clinical and intellectual property. Timelines are longer, public funding weighs more (CDTI, Neotec, EIC Accelerator) and it pays to approach investors who specialise in life sciences and know how to value a regulatory milestone. What kills most rounds is a plan that does not explain which milestone each euro buys.
We write this from Senda Partners, which has worked on rounds for health startups such as Ocubio, Premium Fertility, Smart Scoliosis and Hawk Biosystems, and which invests at pre-seed.
What changes compared with a software startup
| Software | Health, biotech and medtech | |
|---|---|---|
| What proves it works | Customers who pay and come back | Clinical data, technical validation and regulatory milestones |
| Time to revenue | Months | Years, depending on product class and regulatory route |
| What the investor looks at first | Traction and growth | Science, team, intellectual property and regulatory path |
| Weight of public money | A complement | Often a central part of the plan |
| How it is valued | By traction and comparables | By milestones reached and risk still to remove |
The milestones that move valuation
- Intellectual property. Granted or filed patents and freedom to operate. It is the first thing reviewed.
- Technical and preclinical validation. Data showing the technology does what it claims.
- A clear regulatory path. What class of product it is, which approval route it needs and what that costs. For medical devices, the EU MDR and CE marking; for medicines, the AEMPS, the EMA or the FDA.
- Clinical data. Every phase passed removes risk and lifts the valuation.
- Reimbursement and business model. Who pays: the patient, the insurer, the hospital or the public system.
Each round should fund one or two of these milestones, with margin. If the money does not reach the next milestone, the next round is negotiated from weakness.
Public funding, part of the plan
In health, public money does not dilute and is often decisive for reaching the first milestones:
- CDTI and Neotec for R&D projects of technology-based companies.
- EIC Accelerator, from the European Union, which combines a grant and, in some cases, investment from the EIC Fund.
- ENISA, a participating loan combined with the private round.
It almost never replaces a private investor who leads, but it changes a lot how much you need to ask for and at what valuation.
Who to approach
| Type of investor | What they bring | Examples in Spain |
|---|---|---|
| Life sciences specialist funds | They know how to value science and regulatory risk, and often lead | Ysios Capital, Asabys Partners, Invivo Partners, Columbus Venture Partners |
| Generalist funds with a health or deep tech line | Early-stage cheques and network | Inveready, among others |
| Sector business angels | Doctors, pharma executives or health founders: credibility and contacts | Angel networks and former industry executives |
| Health corporates | Distribution, validation and sometimes investment | Pharma and medical technology companies with their own programmes |
These are indicative examples: each fund has a stage and a ticket, so check before writing to them.
The mistakes we see most in health rounds
- A plan without milestones. Asking for money to "advance development" does not say which risk you will remove.
- Underestimating regulatory time and cost. A specialist investor will work it out on their own.
- Approaching generalist funds that cannot value science. They will say no because they do not understand the risk, not because the project is bad.
- An overly technical deck. The science has to be there, but the investor needs to understand in two minutes why it is an investment.
- Leaving intellectual property for later. Without a clear patent position, many funds will not go further.
Frequently asked questions
How long does a round take for a health startup? Longer than in software: due diligence covers science, intellectual property and regulation. Plan for several months more than an equivalent software round.
What public funding is there for health startups in Spain? The most common routes are CDTI and Neotec, the European Union's EIC Accelerator and ENISA, combined with the private round.
Which investors invest in biotech in Spain? There are life sciences specialist funds such as Ysios Capital, Asabys Partners, Invivo Partners and Columbus Venture Partners, and generalist funds with a health or deep tech line, such as Inveready.
How is a biotech or medtech startup valued? Mostly by the milestones reached and the risk still to remove: intellectual property, validation, regulation and clinical data.
We prepare these rounds from the investor's side and charge for time and dedication, never a success fee. For the general process, see the guide to fundraising for startups in Spain.
Nacho Sánchez is an early-stage investor at Archipélago Next and Suda. At Senda, he helps founders raise their round from the investor's side. Before that he was at Antler, Adara Ventures and Demium.