Genocea Chooses Corporate VCs, Perhaps Presaging a Sale?
This article was originally published in Start Up
Many start-ups downplay or shrug off the suggestion that strategic investors will help align them for exits, but for vaccine developer Genocea Biosciences, the decision to secure multiple corporate VCs in its $35 million Series B round was engineered to do exactly that.
You may also be interested in...
Corporate venture groups are poised to become one of the main sources of funding for early-stage biotechs thanks to the current economic climate. Even if corporate venture groups invest at the same levels as previous years, some industry veterans believe they could play a role in up to half of the early-stage financings this year, largely because the traditional sources of financing--the public market and venture capital groups flush with cash--have disappeared. And the new vigor of corporate venture offers big benefits to both small biotechs and Big Pharma.
The onetime Celera CEO says his new attempt to centralize biological information into a massive database could lead to breakthroughs that extend the human life span. Behind that bold goal is a more mundane data-licensing strategy that, although not splashy, could still improve medicine.
Do high biotech share prices portend stock-heavy deal-making in lieu of all-cash transactions? Also, Biogen shares the risk with Eisai in an Alzheimer’s deal, while newly public Genocea and cell therapy specialist NeoStem both teamed with Harvard researchers.