Why Biotech Investors Are Betting on First-Time Executives

In an industry defined by scientific innovation and capital intensity, finding the right executive leader is no small feat: experienced leaders are scarce. The good news? There are other talent pools available. The challenge? Looking past the common misconception that only executives who have done the job before are capable of delivering.  

For VC-backed biotechnology companies, the next generation of leaders may be the secret to unlocking growth. These professionals are hungry, capable, and ready to take on the challenge – and likely more comfortable with rolling up their sleeves and bringing a higher level of cultural and role flexibility than their experienced counterparts. For CEOs and investors willing to take the leap, first-time executives can present an extraordinary opportunity to hire differentiated talent. 

The Case for “Step-Up” Talent 

Many organizations over rotate on the need for experienced executive talent. The pervasive belief that only someone who has been in the seat before will be successful is simply not true. “Step-Up” candidates, or those who are taking on a C-suite role for the first time, bring a mix of curiosity, adaptability, and ambition. The right candidate will possess: 

• Learning agility and contextual awareness, which will enable them to build the right operating model for this organization rather than defaulting to a historical playbook. 

• Disciplined, relational decision-making, with the ability to integrate cross-functional input, investor guidance, and data with clarity. 

• Scalable leadership experience, offering seasoned capability at an efficient cost structure with the capacity to grow in alignment with the company’s increasing complexity. 

First-time executives also tend to approach problems with less bias, seek feedback more readily, and adapt more quickly to changing business realities. In a fast-moving sector built on constant discovery, agility and learning velocity might outweigh prior C-Suite experience.  

Evaluating Potential First-Time Executives  

Evaluating step-up candidates requires a different approach from sourcing more traditional C-Suite talent. It becomes more critical to evaluate how they’ve performed, how they’ve grown, and whether they have the core experiences that are proxies for success in the end-role. These include the following: 

• Operating at the required strategic level 

• Leading teams through ambiguity or high-pressure environments 

• Navigating complex challenges (e.g., failed trials, organizational resets, funding constraints) 

• Demonstrating judgment consistent with the role 

• Interfacing with boards, investors, regulators, or cross-functional leaders 

• Thriving in environments analogous to the company’s context (structured pharma, scrappy biotech, or both) 

When a leader has enough high-value experiences that can act as proxies for success, you meaningfully reduce the risk of hiring someone who hasn’t yet held the exact title. 

The 80/20 Rule for Step-Up Leaders
The most successful first-time executives will typically bring approximately 80% of the lived experiences required to be successful on day one and stretch into the remaining 20%. That 20% isn’t a risk; it’s a win, serving as the driving force that fuels leaders’ motivation and engagement to perform, innovate, and thrive in a high-impact role. 

Why This Approach Works
By looking beyond what the market typically rewards (title, tenure) and zeroing in on the specific competencies required to achieve strategic goals, companies unlock a broader and more diverse pool of leaders. A search partner can help with the evaluation process, pressure-testing assumptions, evaluating proxies objectively, and identifying candidates with the trajectory for long-term success. 

Success in the biotech industry has always been defined by innovation. For enlightened CEOs and VC investors, it’s clear the same is true for the next wave of industry leaders. Biotech’s future changemakers won’t be the people who have done it all before, but rather those who have the intellect, curiosity, and drive to stretch into the remaining 20%.