Deal-making in a funding vacuum. Plus, mantis shrimp and plastic brains.

👉It’s a rough time for fund-raising, but a good time for deal-making

Mental health is a recurring theme here at the Investors Lab (subscribers can find our coverage of chatbots and deep brain stimulation in our past issues). This week we turn our attention to our own mental health. We’ll be honest with you: our head hurts, for science. A recent article by Science News’s McKenzie Prillaman and Alex Viveros got us thinking about the withdrawal of government support in America for scientific ventures. What does this mean for scientists, innovators, and investors like you?

From grants being frozen, removal of governmental funding for certain fields of research, reduced investment in university science programs, government agency scientists losing their jobs, the revoking of executive orders on biotech … it’s not pretty out there. But innovators are already seeking ways to adapt.

Researchers, Innovators, and Opportunity

Clearly for scientists and researchers in almost all fields, their jobs are at risk, morale is in scarce supply, and there’s a real threat of brain drain. Loss of federal funding for important work creates instability and limits opportunities. Both American-born and foreign-born scientists are eyeing offers from more welcoming countries — those that invest heavily in state-of-the-art research facilities and equipment, and have friendlier social policies. 

For founders of scientific innovations and the investors in their orbit, the outlook is different. If we know a thing or two about startups, it’s that innovation starts with discovering a pain point.