Why Alzheimer's Startups Still Struggle to Raise Money | Karen Harris & Mahesh Narayanan

Alzheimer's science is finally moving. Two disease-modifying drugs are approved. Two bloodtests are approved. Biogen has taken an anti-tau drug into Phase 3. And early-stageneuroscience companies still cannot raise money. Lori Ellis sits down with two investors who fund brain health from opposite ends of thecapital stack and asks the question founders actually need answered: what has to be truebefore you write the check? They do not entirely agree, and that is the useful part. One says the caution was earned bya track record of failure. The other says the ecosystem has already turned. Both arespecific about what they need to see, and blunt about what kills a deal. Karen Harris is Executive Director of Mission-Related Investing and Finance at theAlzheimer's Drug Discovery Foundation, where she leads the ADDF's venture-based investmentstrategy. She came to the nonprofit world after more than two decades in finance, includingGlobal COO of global equity capital markets at UBS and investment banker at Merrill Lynch. Mahesh Narayanan is Managing Partner and Founder of Neuvation Ventures, a Baltimore-basedseed fund backing deep tech, medtech, diagnostics and biotech innovation in brain health.He spent fifteen years running life-sciences startups with two exits, and started investingafter his niece was diagnosed on the autism spectrum in March 2020. (00:00) I can tell who's going to be a good CEO(00:45) Why neuroscience became the hardest early-stage money to raise(04:21) What changed: approvals, payer literacy, and neuroscientists becoming investors(07:56) The payer and prescriber conversation founders start far too late(12:48) Anthem covers a blood-based biomarker, and why that matters(14:21) NIH, DARPA, ARPA-H, and the dual-use advantage in brain health(18:07) Where private equity actually fits, and where it does not(20:11) Venture philanthropy and venture capital: convergence and divergence(25:04) What each investor needs to see from a founder(30:02) Red flags: part-time CEOs and founders who will not be coached(35:05) The caddie test(38:24) What neuro founders should be doing right now and are not(42:03) What inspired this career path(46:56) The hardest decision Watch the full conversation: https://opendoorsalon.com/why-alzheimers-startups-struggle-to-raise-money/Karen Harris: https://opendoorsalon.com/honored-guests/karen-harris/Mahesh Narayanan: https://opendoorsalon.com/honored-guests/mahesh-narayanan/