AUX Talks Explores the Harsh Reality of Life Sciences Fundraising in 2026

On this edition of Aux Talks Zak Dutton of Auxilium Worcester speaks with Danielle O’Neal, the Senior Vice President of Life Sciences at the Banc of California. The conversation centered on the state of fundraising for early-stage life sciences companies in the 2026 market. O’Neal described the environment as extremely difficult, primarily due to a slow IPO market that constrained venture capital liquidity. She detailed the characteristics of founder-led companies that were successfully securing funding, the importance of building strong advisory boards, and the evolving challenges and business models for AI-driven “tech bio” companies. To improve their chances of getting funded, founders need to have a strong track record, such as prior experience at a pharma or VC-backed company, or compensate for a lack of it by building a strong scientific advisory board with experienced professionals. O’Neal said she is willing to talk to entrepreneurs at all stages, even beginning, “The thing that brings me the most joy in terms of what I do is opening up my network to founders. So, I’m always happy to talk to folks.” 

O’Neal also provided specific advice for founders on how to effectively pitch to investors and explained the role Banc of California played in supporting startups. Effective pitching to investors requires founders to do their homework, tailor their narrative to an investor’s specific thesis, and highlight the potential for a large exit by drawing comparisons to other successful companies. “…if you think about what the VCs are actually looking for, at the end of the day, they are beholden to their LPs, their investors. And so you really want to highlight comparable companies where there have been strong exits again, because basically that will highlight that you have the potential to be a company where there’s like a 10X exit.”