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life sciences… only

So, VC’s Broke… Can We Fix It?

There was a terrific interview with Alan Frazier (from Frazier Healthcare Ventures) posted on Xconomy’s site.  I encourage everyone to check it out.  

Here’s the major passage I took away (quoting Mr. Frazier):

We are investing a little more than half in biotech, and the balance in medical devices. We are, for sure, doing less startups and more later-stage companies. We do a lot of new companies, still, probably one-fourth of our companies are new companies. But a lot of them are like Calistoga where it starts out with a product pretty much ready to go, where we pull it from someone else and try it in a new indication.

So, it seems to me like there is a new equation for VC that looks a lot more like private equity.  In other words, VC’s will be looking for enterprises in the future that are closer to positive cash flow, and they will be looking for companies that will make attractive acquisition targets (as opposed to potential IPOs).

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December 8, 2008 - Posted by | Biotech, Deals, Med Tech, Pharma | , , , , , , ,

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