In the Midst Of A Shakeout, Biotech VCs Must Embrace New Partners, New Math
This article was originally published in Start Up
With funds and firms closing, a new reality awaits those who survive until the next economic upswing. Some of the elements are already in place, such as VCs' willingness to take capped returns and exits via risk-sharing contingency-based acquisitions. The emphasis on capital efficiency may change the types of companies VCs can afford to back, and corporate funds are now a vital part of biotech venture, especially in the early stages.
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Plus news on recent financings by Onyx Therapeutics, InterMune, Versartis and Aileron Therapeutics.
START-UP's 2011 Life Science Venture Capital Survey: Biopharmaceutical Investors Let Some Sunshine In
In START-UP's first life science venture survey, biopharma investors have plenty to complain about -- and they do -- but their generally positive outlook stands in contrast to that of their peers focused on medtech. Includes sidebar, "VCs Survive Amid Few Exits And Many Goodbyes."
IN an effort to forge earlier and stronger ties to venture-backed biotechs, the new Merck Research Venture Fund illustrates the lure -- and the limitations -- of strategic pharma-VC relationships. Merck has endowed the MRVF with $250 million and the fund will make a series of investments in life science venture capital firms around the globe. Simultaneously it has also staked a second fund, the Global Health Innovation Fund, with an additional $250 million to invest in later-stage companies outside of the drug area.