Corporate Venture Eyes The Early Stage
This article was originally published in Start Up
In our second annual Life Science Venture Survey, VCs paid their respects to the importance of corporate investors right now. For their part, corporate investors, many from long-established programs, said they are bullish about making more bets in early-stage companies.
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In our third annual Life Science Venture Survey, corporate investors said they continue to focus on providing crucial capital to early-stage companies. They also reported this year that they’re being judged less strictly for the financial return they bring to their parent companies.
For a device start-up, an option to acquire presents a clear path to liquidity, but there are drawbacks. An analysis of deals in Elsevier’s Strategic Transactions suggests the importance of such options to the overall merger and acquisition ecosystem might be overblown.
Corporate venture capital groups have made an impact on life science investing in recent years, but when it comes to going public, the biotechs they back aren’t seeing an extra boost.