Weekly Newsletter – October 12, 2025

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October 12, 2025 – Today’s newsletter explores three critical trends reshaping entrepreneurship and venture capital. We examine how sustainability-focused founders can build product-first companies, practical approaches to addressing gender imbalance in VC funding, and the shifting investment landscape for platform biotechnology companies. These intersecting topics highlight the importance of intentional strategy, diverse teams, and capital efficiency in today’s evolving investment climate.

Product-First Sustainable Entrepreneurship: A Practical Playbook

Why product-first? Build the sustainability into the product so value for customers and the planet is inseparable — not an afterthought. Research and programs in the field recommend pairing traditional market validation with lifecycle and impact thinking to balance commercial viability and environmental/social responsibility (the core of a sustainable strategy). Source

6 practical steps for product-first founders:

1. Define the core problem as an environmental or social outcome, then map the product’s life-cycle impacts (materials → use → end-of-life). This reframes features as impact levers (design choices, materials, reuse). Source

2. Translate values into product specs and business model (value proposition, pricing, circularity). Teachings and projects that blend values-based innovation with hands-on venture work illustrate this approach. Source

3. Validate both market demand and measurable impact early. Combine customer development with basic impact KPIs (e.g., carbon per unit, recyclability rate, social benefit per customer). Source

4. Design funding and growth pathways that reward sustainability (subscription, take-back services, premium for verified impact). Make unit economics and impact metrics readable for investors and partners.

5. Anchor your team and governance around the founder “why.” Motivation beyond profit is a common driver for green founders; preserving that alignment helps maintain impact as you scale. Source

6. Prepare for standards and reporting as you scale (GRI, ESRS/CSRD, impact reporting). Plan for these frameworks early to avoid rework. Source

Three concise KPIs to track from day one:

– Product lifecycle emissions per unit (LCA scope) — track improvements per iteration.
– Customer retention or repeat usage for circular or service models.
– Unit economics adjusted for verified impact costs and revenues (true margin including circularity/upfront take-back costs).

Closing the VC Gender Gap — Evidence-Based Actions for GPs and LPs

The problem in one line: in the UK in 2024 less than 2% of venture capital went to female CEOs while all-male teams captured roughly 81% of funding — a stark imbalance that requires immediate, practical responses. Source

Why this can be fixed: data from VC Lab’s Decile Group analysis shows rapid gains at the emerging-fund level — mixed-gender funds have doubled as a share of new funds and female LP representation has risen materially (their report documents higher close rates and comparable fundraising performance for mixed-gender and women-led teams). Source

Concrete steps for funds and LPs:

1. Build mixed teams as default. Mixed-gender funds are more likely to reach a first close and raise amounts on par with all-male peers; pairing complementary skill sets speeds fundraising and broadens LP appeal. Source

2. Expand LP pipelines to include more female and smaller-ticket investors. Female LP participation is growing and female LPs often invest at accessible ticket sizes that widen the base of committed capital. Source

3. Set transparent targets and publish progress. Track team composition, checkwriting roles, and capital allocated to diverse founders; transparency changes behavior and helps LPs assess execution.

4. Incentivize diversity in GP selection and GP-to-GP introductions. Encourage co-investment with women-led and mixed funds, and include diversity criteria in LP mandate documents to reward inclusive fund formation.

5. Reduce process bias in dealflow. Standardize pitch materials, anonymize early screening where possible, and train partners on biased evaluation signals to surface merit across a wider founder pool.

6. Support founder readiness, not just pitch access. Fundraise and incubation programs should include negotiation coaching and investor prep for women founders, which improves outcomes at term sheet stage.

Platform Biotech — 2025 Investment Trends and What Founders Should Do Now

Platform biotechs are operating in a “two-speed” capital market: large, experienced managers continue to raise big, concentrated funds while syndicates are writing fewer checks and early-stage financings have tightened. That dynamic favors founders who can demonstrate rapid, capital-efficient derisking and clear exit or partnering pathways. Source

What’s driving the shift:

– Greater selectivity from VCs as public markets and grants tighten. Source

– A resurgence in M&A that is re-rating assets and creating exit demand; AlphaSense reports 2025 deal value accelerating (YTD deal value overtaking 2024). Source

– Growth of alternative financing (royalty/credit funds and corporate-VC hybrids) giving platform companies non-dilutive options. Source

Practical playbook — 5 actions to improve fundability now:

1. Tighten your milestone map to capital inflection points: present 12–24 month, capital-efficient objectives that convert platform output into clearly licensable assets. Source

2. Prioritize hires that de-risk execution (head of development, CMC lead, BD/commercial advisor) — strong teams de-risk platform uncertainty. Source

3. Explore non-dilutive and hybrid capital early (royalty/credit, corporate partnerships) to extend runway and avoid down-round pressure. Source

4. Target the right investor profile, not just the largest check: match platform thesis to builders/incubators for company-creation plays or to crossover/strategic investors for later-stage de-risking. Source

5. Monitor M&A signals and be prepared to partner or out-license: an active M&A market increases the probability of strategic exits. Source

Bottom line: Capital is available, but platforms must be more disciplined and explicit about how their technology creates transactable assets. The winning companies will combine technical depth with tight operational execution, staged milestones, and a blended financing strategy.

In conclusion, today’s funding landscape rewards founders who build with intention, whether embedding sustainability into product design, creating diverse investment teams, or demonstrating capital efficiency in biotech platform development. The common threads across these trends are clear: investors are increasingly favoring companies that combine mission-driven approaches with disciplined execution, transparent metrics, and thoughtful capital strategies. By applying these practical frameworks, founders and investors can build more resilient companies while addressing critical market gaps and environmental challenges.

Sources