The credibility challenge: how Catello Somma broke into venture capital
Catello Somma, Partner at Seroba, tells more about his journey into venture capital.
Catello Somma's story reads like a masterclass in taking a strategic approach to changing career, showing how apparent setbacks can become the foundation for success. His journey from dropping out of a PhD programme to becoming a partner at Seroba Life Sciences provides valuable insights into the complexities of biotech venture capital and the changing landscape of life sciences investment in Europe.
Leaving academic environment
In 2009, when Europe's biotech ecosystem was still in its early stages compared to America's biotech ecosystem, Catello Somma made a decision that was not usual in the academic environment. ‘’Instead of following the traditional academic path – completing a PhD and only later considering a career shift – I decided to go all in on what had already become my passion: helping entrepreneurs and innovators to turn and scale their technologies into solutions for patients. Even just the idea was deeply motivating to me. At some point I felt a strong urgency to make things happen – and I wanted my career to reflect that.’’
Breaking into venture has not been direct but went through entrepreneurship. During that period, Catello was immediately confronted with the most formidable barrier in biotech backed companies. ‘’The first challenge is credibility of the biotech entrepreneurs. Venture capital operates within a tightly knit network where people tend to do repeat business with those they have known and worked with before. Ultimately, you're not just investing in ideas – you're investing in people. Trust matters more than brilliance without a track record.’’
This led him to a chicken-and-egg problem: how do you build credibility without experience, and how can you gain experience without credibility? ‘’In 2016, I approached a venture fund with a concept for a ‘build-to-sell’ company. I had studied their portfolio and identified synergies with an additional molecule or set of assets, which became the core of the pitch. Even with a compelling idea, securing funding depended heavily on the team. My co-founders were experienced biotech executives, well-known and respected in the community. That credibility was essential. In life sciences, it's extremely difficult to raise capital as a first-time team, no matter how strong the science or business case.’’
Do you have any specific advice for first-time CEOs who want to build that credibility? Would you suggest attracting a senior advisor?
‘’I would definitely recommend for advice from trusted people with domain expertise, they are great source of inspiration. I would start by learning about their work. Then reach out directly: share your vision, explain why your product matters, and describe how their expertise could make a difference for your journey. Most seasoned advisors understand that, at the early stage, there’s little or no compensation, few concrete answers, and a lot of gaps in the business plan. Their role is often to provide strategic guidance at a high level. But even that limited support can make a real difference. With a credible advisor, a solid business plan, and sharp positioning, you will be well positioned to take off with your venture.’’
Even with a compelling idea, securing funding depended heavily on the team. My co-founders were experienced biotech executives, well-known and respected in the community. That credibility was essential.
From founder to funder
Rather than viewing entrepreneurship as a detour, Catello Somma sees it as a critical stepping stone in his path to venture capital. ‘’My goal was always to become an investor. But I didn’t follow the typical path – a PhD from a top institution, followed by consulting roles and early access to international networks. I came from a very different starting point, and company creation was my way in. Every role has its own challenges, but I see that as an advantage. You don’t acquire this kind of insight in school or traditional corporate environments. For me, entrepreneurship has been a unique opportunity to build a distinctive profile – one that allows me to truly understand teams, governance structures, and how to evaluate companies from the inside out.’’
You are also an angel investor in biotech companies. From my perspective, it seems more difficult to be an angel investor in biotech companies than in tech companies because the capital required is much higher.
‘’Well, the challenge in biotech angel investing isn’t really the ticket size – there are multiple ways to assemble funding if the assets are strong, but certainly life sciences has a completely different equity dynamism compared to other verticals. The real issues are attrition and exit potential. Unless you reach a multi-billion-dollar outcome, returns can be limited for business angels. So why do people angel invest in biotech? For many, like me, it’s about giving back. It’s a way to stay close to the ecosystem and contribute meaningfully. Mentoring is also a big part of it. There’s real satisfaction in seeing a new drug addressing an unmet need or a device solve a patient’s problem – especially if you’ve worked in the field or have a personal connection to it. That’s often the real motivation.’’
Somma also reflects on the investment strategy at Seroba. ‘’We invest with conviction. We look for emerging opportunities within areas where we have expertise and exposure. We stick to a few core themes and expand them gradually, building domain knowledge. The philosophy has always been to be a value-adding investor, not just a financial backer.’’
What does it mean to be a value-adding investor?
‘’We actively support management teams. When we lead or co-lead an investment, we don’t just bring capital – we help assemble a syndicate of like-minded investors who can contribute meaningfully at the board level. We also connect management with the right networks and make targeted recommendations to strengthen execution. We’re particularly comfortable with cross-border investments. Often, the core team and capabilities are in one geography, while drug development or clinical operations occur elsewhere. Our focus is on creating the conditions for operational efficiency – enabling timely patient recruitment, access to the right advisors, and smooth project execution. Ultimately, while success depends on the data, our goal is to ensure the company is fully equipped to succeed – financially, strategically, and operationally.’’
I came from a very different starting point, and company creation was my way in. Every role has its own challenges, but I see that as an advantage.
Dutch investment
Seroba’s recent investment in Azafaros exemplifies its investment philosophy in practice. The firm participated in a €132 million Series B financing round alongside prominent investors Jeito Capital, Forbion, and Pictet. Catello Somma had followed the asset class for years before the opportunity materialized. ‘’Before becoming an investor, I worked for a CRO that counted Actelion among its clients. At the time, Actelion marketed Miglustat, the first-generation compound related to Azafaros’ lead asset. Since then, I’ve kept this class of molecules on my radar – there’s significant potential and a clear unmet need in lysosomal storage diseases.’’
The lead candidate was developed at a leading Dutch research institution with deep expertise in this area. ‘’The science was robust, the team had strong domain knowledge, and the board consistently supported the company through multiple stages of development. Reviewing the latest data made the case compelling – and that’s what ultimately convinced my investment committee.”
Somma underscores the strength of the leadership team. “Everyone on the board and management team brings relevant experience – whether in the underlying science, the target indication, or operational execution. It’s a highly effective setup. The next step is to successfully execute the pivotal studies that will bring an important new therapy, Nizubaglustat, to patients in the need. Fingers crossed.”
Do we face a challenge in the European biotech ecosystem?
‘’Yes, I believe we do. Investor appetite for life sciences in Europe has declined compared to the peak during the pandemic. As priorities shift, capital is increasingly being directed toward other sectors, leaving less funding available for biotech. At the same time, we’ve seen some consolidation, with a few large funds now managing over a billion euros or dollars. This concentration will affect how capital is deployed, particularly in relation to the maturity of European companies, deal valuations, and access to high-quality syndicates. We are a product of the environment we operate in. The challenges are real – but innovation must continue. If we stop developing new tools to fight diseases that remain untreated, we lose sight of the fundamental mission of improving human health. That’s why, as investors, we must be more selective than ever. We need to back companies addressing genuine unmet needs – those with a best-in-class edge with a truly differentiated approach. ‘Me-too’ companies are not enough. The bar for entrepreneurs is higher today, and the same goes for investors. Supporting a company may no longer mean one round of funding – it may require a longer-term commitment across multiple rounds.’’
If we stop developing new tools to fight diseases that remain untreated, we lose sight of the fundamental mission of improving human health. That’s why, as investors, we must be more selective than ever.
The path of persistence
Perhaps the most compelling aspect of Somma's story is his candid discussion of the rejection he faced while trying to enter venture capital. For some people, this was a no-go from the beginning. ‘’They said: ‘Look, we're not able to position you within a team. You are too old to be an analyst, too young to be an investment manager or a partner, forget about it. What would you be? A venture partner, an entrepreneur-in-residence? If you want to be part of the investment team, there's no space for you’.’’
He acknowledges that there’s no universally right or wrong path into venture, but there are more predictable trajectories – and then there are exceptions. ‘’For me, the key was to build the right building blocks and demonstrate that I could assess deals from multiple angles.’’
The breakthrough came when Somma found a firm where his unique background created value rather than confusion. ‘’I joined TVM Capital Life Sciences, which had a strategic partnership with Eli Lilly. My own biotech venture had been built with former Lilly executives, and we were developing a best-in-class version of a Lilly compound. That gave me a corporate angle that was directly relevant. That became my entry point.’’
One of the most valuable lessons Catello Somma shares comes from an early experience at TVM Capital Life Sciences. During his first investment committee meeting, he was evaluating a drug candidate targeting FGFR4 and drew on his previous experience with similar programs. ‘’When a Managing Partner asked me, ‘Why are you so confident about the target’s expression levels?’, I replied, ‘Because I’ve done it before’'. That wasn’t enough. He challenged me in front of the entire committee: ‘You’ve done it before, so you think you know it? Either you have a fact-based answer, or you go back and get one’.’’
Somma describes this moment as a turning point. ‘’It taught me a lasting lesson – stay humble and always question your assumptions. Why do you believe something? What’s the evidence? And is that evidence truly solid and conclusive? Since then, I’ve made it a rule to ground every judgment in data that can withstand scrutiny. That moment shaped how I approach every decision.’’
For me, the key was to build the right building blocks and demonstrate that I could assess deals from multiple angles.
Catello Somma is a Partner at Seroba. He has a background in venture capital and clinical development, with a focus on the biotechnology and medical device industries. Prior to joining the firm in 2024, Catello was at TVM Capital (Munich), involved across different strategies for both biotech and medtech. Before starting a career in venture capital, Catello co-founded a Boston VC-baked biotech start-up (exited), developing therapeutics for oncology and autoimmune diseases. He started his career in 2009 working for different CROs and biotech companies between Italy and Switzerland. Through his previous roles within clinical and corporate development, he is actively contributing with his expertise to driving and supporting new and existing investments across funds and theses.