Becker’s Healthcare Podcast

Episode: Insights on Capital Markets and Leadership with Stephen Older of McGuireWoods

Date: September 28, 2025
Host: Scott Becker
Guest: Stephen Older, McGuireWoods LLP

Overview

In this episode, Scott Becker sits down with Stephen Older, a partner at McGuireWoods’ New York office, during the McGuireWoods Healthcare Growth and Operations Conference. The conversation focuses on recent trends in healthcare capital markets, particularly in the life sciences sector, and transitions into a candid discussion about leadership philosophy, professional development, and advice for emerging leaders in law and business.

Key Discussion Points

1. Life Sciences Capital Markets Activity

• Increased Market Activity:
  • Stephen reports that deal flow in the life sciences sector is at its busiest in years, following a prolonged lull.
    • "It's actually busier now than it has been in the last couple of years. There was definitely a lull, but it's definitely, definitely picked up in the last couple months." (00:27)
• Types of Transactions:
  • Most clients are pre-product, especially phase II companies, requiring repeated capital raises to fund ongoing clinical trials and maintain Nasdaq listings.
    • "A lot of transactions where a lot of follow ons known as like a lot of confidentially marketed public offerings, registered directs...not necessarily at the best valuation, but they just have to keep going." (00:50)
• Challenges of Listing on Nasdaq:
  • Tougher Nasdaq requirements now demand at least $15 million in external capital for IPOs—previously, companies could go public with as little as $5 million, often leading to sustainability issues.
    • "NASDAQ is now making it a little harder for companies to get on because if you want to do an IPO, you have to raise $15 million of outside money." (01:34)
  • Companies risk delisting if their share price falls below $1, causing additional pressure. (01:50)
• Hope for the Future:
  • Stephen expresses optimism about the current strength of the market and the vital role of biopharma startups in developing much-needed drugs.
    • "I feel the market is stronger now than it has been in a while...there's money to help. Some of these companies are really, you know, there's a lot of need for these companies." (01:58)

2. Leadership and Career Growth

• On Being an Effective Leader:
  • Focus on genuine connections, helping others without expectation, and supporting younger colleagues' growth.
    • "It's connections to people and even helping people when they don't, you know, you're not going to get something out of it. Just trying to help the company and also help the younger people." (03:42)
• Mentoring and Investing in Talent:
  • Invest especially in those who show drive and leadership potential, acknowledging that not everyone aspires to advance or lead teams.
    • "You have to double down your time and efforts on those that really want to grow." (05:23)
• Learning Through Failure:
  • Lawyers and professionals must learn from failures, as batting .300 is excellent in client development.
    • "The real issue is you got to learn how to fail...if I go to 10 clients and I get three of them, that's an incredible record. So, I mean, you're going to fail seven times, and you got to realize, like, failure is not the worst thing in the world. You learn a lot from failure." (03:42)
• Sports Analogies & Resilience:
  • Roger Federer and Jeff Bezos examples are cited: greats experience significant losses but focus on continual effort and learning rather than avoiding setbacks.
    • "Roger Federer...he's won 53% of all of his total tennis matches...lost 47 and still has been one of the great, great winners of all time." (04:43)
    • "Jeff Bezos...doesn't view the losses as losses. They're Investments that didn't go as well as they wanted to and they, they moved into, into other things." (05:56)

3. Evolving Management Styles

• Moving Away from Fear-Based Leadership:
  • Outdated models based on fear and intimidation no longer work; people either leave or become paralyzed.
    • "The worst thing you can do is lead by fear...I've seen people like that...people were always worried about failing...you're not going to do as good a job." (06:16)
  • Modern leaders must tailor roles to strengths and ambitions, recognizing not all want (or need) to be business developers or leaders.
    • "There's roles, there's different roles for different types of people...some people aren't, they're not meant to go out and get business versus, you know, very being great practitioners." (06:43)
• Culture of Quality and Accountability:
  • Responsiveness, care for one’s work, and striving for excellence are emphasized; indifference toward quality is unacceptable.
    • "In our business, the worst thing you do is not be responsive and not, you know, and not care about what you're doing." (07:17)
    • "You want to take that, say, I don't want, I don't want that to happen again. I want, I want to make sure that I make this person happy with my work product." (07:49)

Notable Quotes & Memorable Moments

• On Market Revival:
  • "We're seeing a lot, a lot of activity in the life sciences space. It's actually busier now than it has been in the last couple of years." – Stephen Older (00:27)
• On Raising Capital in Difficult Markets:
  • "Even though the market was bad, you can't survive unless you raise money." – Stephen Older (00:50)
• On IPO Funding Requirements:
  • "NASDAQ is now making it a little harder for companies to get on because if you want to do an IPO, you have to raise $15 million of outside money." – Stephen Older (01:34)
• On Leadership and Failure:
  • "The real issue is you got to learn how to fail...failure is not the worst thing in the world. You learn a lot from failure." – Stephen Older (03:42)

Timestamps for Key Segments

• [00:27] Stephen’s intro & overview of his capital markets practice
• [00:50] Types of transactions and funding cycles for life sciences companies
• [01:34] Nasdaq IPO requirements and challenges for early-stage companies
• [02:54] Outlook for 2025; companies at inflection points, federal funding issues
• [03:42] Leadership philosophy—investing in people, learning from failure
• [04:43] Federer analogy; the importance of perspective on wins/losses
• [05:56] Jeff Bezos on redefining ‘loss’
• [06:16] Dangers of fear-based management; need for differentiated roles
• [07:17] Quality, accountability, and striving for excellence in team culture

Tone and Takeaways

This episode delivers a practical, candid look at both the changing landscape of healthcare capital markets and the foundational qualities of strong leadership. Both speakers weave in personal anecdotes and widely relatable analogies, keeping the conversation lively yet insightful. The episode is ideal for healthcare executives, professionals in capital markets, and leaders seeking honest discussion around professional growth and organizational culture.