Born at a time when venture capital found few exit opportunities for early-stage companies, build-to-buy helped mitigate the risk in investing in uncharted science. But the model is flourishing even in this period of wider capital options.

VCs and big pharma execs, speaking at CALBIO, said that even in today’s freer economic climate, investing early in startups, with an option to buy when the time is right, is still a viable business strategy.

Start-ups raised $893.9 million in Q2 2014, a 25% drop from last quarter’s record-setting $1.18 billion. Metabolic disease was the most prevalent therapeutic category involved in alliances; seven acquisitions were signed, five in the biopharma sector.

Versant is betting a sizable amount of its portfolio on drug assets, instead of full-blown companies, with single buyers holding options to acquire each one.