At the Biomed 2026 conference in Tel Aviv, a panel of life sciences investors answered pointed questions about what kinds of biotech and medtech companies can raise money, what myths Israeli founders should drop, and what advice startups usually do not hear from venture capitalists. The discussion was led by Matti Gil, CEO of AION Labs, a studio that builds deep-tech companies combining artificial intelligence and biology, and took place about a month ago.
Michael Rice of LifeSci Partners said his firm starts by asking a company to define its total addressable market, and if it cannot, it is not a fit. Michiel Habbib of ALIVE said Israeli founders are deeply innovative, but investors also need reassurance about team, execution, and business model. Michelle Lyn Hall of Entrée Bioventures said she is open to first-time CEOs if they understand what they do not know, adding, “We do not like when managers are arrogant.”
On AI, Mical Geva of Triventures said the firm used to back AI tools that supported existing workflows, but now invests only when the product would not exist without AI. She noted that today it is easier to define products from needs, making simple differentiation harder. Hall said Boston remains a science and innovation center, but in AI it can learn from San Francisco, and Israel can help too.
Asked what myths Israeli founders believe, Habbib said technology alone determines a company’s future, Geva said an exit within five years is unrealistic, and Hall said founders should not assume they are brilliant and the world is merely failing to notice. Raphael Wisniewski of Andrea Partners said Israeli companies often under-raise early and miss funds that only write large checks; he cited a company he urged to raise $60 million instead of $20 million, but the deal collapsed only because it was acquired. Geva added that foreign investors no longer come only for tiny seed-stage companies, and rounds of $50 million or even $100 million are now common.
Shahar Tzafrir of TLV Partners said seed valuations have doubled, with a $3 million round six years ago now priced around $6 million, though real drug and device development costs may be falling thanks to new AI tools. On founder advice, Hall said companies must stay close to customers, usually meaning moving to the United States, Geva said being the smartest person in the room is a warning sign, and Tzafrir urged founders to protect their mental health because the journey is long and hard.
The panel also discussed China’s growing dominance in drug development and whether US investors active there will widen their focus. Rice said not necessarily, while Wisniewski said China has become a “supermarket” for biologic drugs, with big pharma and VC firms using local talent, cheap labor, and established search networks. He warned that this creates major competition for Israel and Europe. Rice said Israeli companies can still find opportunities in radiopharma and respiratory diseases such as CF and COPD, especially if they are paired with experienced managers who can survive investor scrutiny in Boston.
