Scaling is the silent killer in biotech. Founders assume success depends on IP strength or regulatory wins. In truth, most companies fail at Series B/C not because science falters but because operations collapse. Headcount outpaces systems, culture fragments, burn accelerates, and execution slows.
Investors see it instantly: a company with promising molecules but dysfunctional operations isn’t fundable. The playbook is simple—if you’re scaling, operations must shift from founder-led chaos to structured discipline.
Below is the framework I circulate with boards, preparing biotech CEOs for the scaling cliff.
Pillar 1: Operating Model Shift (20 → 80 Employees)
Blunt Truth: What worked in the lab will kill you in scale.
From Ad-Hoc to Structured Cadence
Weekly all-hands no longer works. Move to tiered cadences (executive, functional, team).
Introduce OKRs or milestones that are directly tied to the capital runway. No milestone, no justification for burn.
Decision Rights
Founders must stop being the default decision-maker.
Create a RACI map (Responsible, Accountable, Consulted, Informed) for the top 10 workflows.
Without clarity, bottlenecks multiply, and execution slows.
Investor Transparency
Standardize reporting. Monthly operating dashboard (cash, headcount, milestones, risk).
Keep investors ahead of surprises—they punish opacity more than bad news.
Signal You’re Late: If your calendar is 90% fire drills, you’re scaling on chaos.
Pillar 2: Talent Density vs. Dilution
Blunt Truth: Culture breaks before strategy does.
Hire for Scale, Not Just Science
Early hires are often brilliant but often have a narrow focus. Scaling requires generalists who build systems.
Bring in operators early: HR lead, program manager, and finance controller. They don’t look “critical”—until it’s too late.
Guardrails on Headcount Growth
Never add >20% headcount in a quarter without a systems upgrade.
Each functional lead must present a “scale plan” before hiring requests are approved.
Leadership Maturity
By 50 people, half of your early leadership team will be out of depth. Investors know this. CEOs must make tough decisions quickly.
Signal You’re Late: Turnover accelerates among your best people—they leave because dysfunction, not competition, pushed them.
Pillar 3: Investor-Ready Operations
Blunt Truth: By Series B, investors fund execution, not just molecules.
Operational Metrics Investors Track
Burn multiple (cash used per milestone hit).
Cycle time (decision-to-action lag).
Alignment (how consistent board updates are with internal execution).
The Discipline of “No”
Scaling companies fail by chasing parallel programs.
Ruthless prioritization: kill initiatives that don’t advance the capital runway.
Show investors you can say “no”—that discipline is investable.
Board as Operating Ally
Treat the board as a partner in scale, not oversight.
Pre-wire decisions: no surprises in meetings, only ratifications.
Signal You’re Late: If investors are asking, “Who actually runs this place?” you’ve already lost leverage.
Actionable Takeaway
Scaling operations is a staged transformation: from ad-hoc to structured, founder-driven to system-driven, and from chaos to discipline. CEOs who fail to pivot lose not to science, but to execution drag.
Ask yourself:
Do I have a cadence, not just meetings?
Do I have operators, not just scientists?
Can I prove discipline to investors in one slide?
Bottom Line
Biotech scaling operations aren’t optional—they are the core determinant of survival past Series B. Molecules get you to the table; operations keep you in the game. The CEOs who ignore this find themselves raising down rounds or getting acquired under distress.
Next Step
If you’re at or approaching the scaling cliff, review this with your leadership team. I can walk you through the operational audit template that boards are using privately.