Xconomy: Biotech Lagging Behind Go-Go Web Valuations, Survey Says
Summary
“If you compare life sciences to the hot sectors, like the Internet, things don’t look so good,” says Matthew Rossiter, a corporate finance partner at Fenwick & West in San Francisco.“Things are challenging, but the sky isn’t falling.” Still, the report offers the latest evidence for what’s been a troubling story for life sciences venture capital the past couple years.As biotech VCs have struggled to show home-run returns to the pensions, endowments and institutions that support them, many limited partners have looked elsewhere to find high-risk/high-reward investments.Many VCs, citing factors like FDA regulatory uncertainty and insurance reimbursement hassles around new life science products, acknowledge privately that they are having difficulty in raising new funds to keep investing in new companies.—Many life science investors look to be working extra hard to ensure they can get returns from their existing portfolio companies.
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