Some Good and Bad Investment News for Biotech Companies

Let’s start with the good news first. A report issued by the National Capital Association and PricewaterhouseCoopers found that venture capital investment in biotechnology grew 22 percent in 2011. And, now the bad news; initial funding for biotechnology startups seeking investment hit a 16 year low last year. The consensus among financial analysts is that life science investors are increasingly focusing on later stage companies because they carry less clinical and regulatory risks as compared with early stage ones. Put simply, VCs, like everyone else, have become much more risk adverse and do not want to invest in companies that don’t have a minimum history of success.

According to the report, venture firms spent $4.73 billion on 446 biotechnology companies in 2011, the highest dollar amount since 2007. Approximately, 153 biotechnology and medical devices companies received their first round of funding last year.

Finally, the US Food and Drug Administration approved 30 drugs in 2011; 13 of which were developed in part by venture funding.

Until next time...

Good Luck and Good Job Hunting!!!!!!!!!!!!

 

Calling All Life Sciences Startups: Check out LifeScienceFest Americas if Your Company is looking for Investment Capital

After a long drought, venture capital and private equity investments into private life sciences companies are beginning to flow again. VCs and fund managers have monies that must be invested into promising new ventures. The best way to find the right investors is to present at life sciences investment fairs like LifeScienceFest Americas. This year BioJobBlog and BioCrowd are cosponsoring the event.  

If you are interested in presenting your company to qualified investors, please read the information presented below and take advantage of discounted rates.

APPLY NOW TO PRESENT AT LIFESCIENCEFEST AMERICAS - JUNE 17, 2011
Investorfest Media is proud to announce call for nominations from promising startups for
LifeScienceFest Americas conference on June 17th.  At the 3rd annual venture conference, we will showcase up to 16 promising innovators seeking funding to active life science angels and investors.

APPLICATION DEADLINE : MAY 14, 2011
If you are a startup (seed, Series-A,B,C or restart) from the medical device, diagnostic or
healthcare technology space and you are seeking new investment to start or grow to the
next level, this is THE conference for you. You must be seeking funding from $250K to
under $20M. Learn more on the application process, segments of interest and deadlines.

CONNECT WITH LEADING INVESTORS AT LIFESCIENCEFEST
General Partners & angels from 20+ leading firms including Sand Hill Angels, Band of Angels, Keiretsu Forum, Claremont Creek Ventures, Bay City Capital,Physic Ventures, Psilos Ventures, Sofinnova Ventures,  Lumira Capital and many others will be at the event. Learn more..

WHO SHOULD ATTEND

Investors from Founders of promising innovative companies seeking capital to industry executives, investors and M&A professionals will be in attendance at this exclusive, limited seating event. Non-presenting entrepreneurs can also attend, and must register early to reserve their spot. Register Now to reserve your spot

BIOJOBBLOG BIOCROWD MEMBER DISCOUNT
A limited number of discounted tickets are available for Biocrowd members who will receive $50 off early bird registration and pay just $299. Apply code BIOCR50. Discounts are offered to qualified non-service provider professionals from the life science and med device industry and on a first-come, first-serve basis. Register Now at the discounted rate.

ABOUT INVESTORFEST MEDIA
Investorfest Media is the leading VC funding accelerator working in the life science and medical device space. Through our highly focused training and hands on support, qualified companies are put in front of specially chosen investors our annual LifeScienceFest conference. To date over 75% of presenting companies have gone on to receive funding, with over $280 million being raised since 2006. Learn more at investorfest.com

Until next time

Good Luck and Good VC Hunting!!!!!!

 

VCs Bullish on Biotech

Despite dire predictions, the biotechnology industry appears to be weathering the recession better than most. According to a CNN Money.com post “Biotechnology leapt ahead as the biggest recipient of U.S. venture capital money in the second quarter, but first-time venture investments in companies overall dropped to a 15-year low.”

Biotechnology funding grew 54% to $888 million in 85 deals, software came in flat at $644 million in 135 deals and Internet companies fell 15% to $524 million in 124 deals. While biotechnology company investments are leading the pack, the current funding levels pale in comparison to those of the late 1990s and early 2000s. Also, it is important to note that many of the biotechnology company investments were in mid to late stage ventures. Fewer investments were made in seed or early stage companies which historically have outpaced funding in late stage ones.

Venture capitalists may be favoring biotechnology investments because there is a clear exit strategy—there are more acquisitions and initial public offerings in life sciences as compared with other industries.

Look for continuing investments in the biotechnology sector—especially in molecular diagnostics and medical devices.

Until next time...

Good Luck and Good Job Hunting!!!!!!

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