Cratering VC funding for biotech: Still plenty bad, although not what it originally seemed
Are venture capitalists really shunning biotechnology, as I wrote a few days ago? A deeper look at the data suggests the answer is still yes, although not exactly for the reasons I first suspected.
First off, the most striking data point I noted in my earlier post — that VC funding accounted for just 62 percent, or $872 million, of the $1.4 billion invested in biotech startups during the third quarter — did indeed turn out… Continue Reading
Biotech’s dirty little secret: VCs are heading for the hills — fast
(UPDATED: See below.)
At first glance, life-sciences investments seemed largely to hold steady in the third quarter, despite failing to match a 7.6 percent rise in overall funding, according to data from VentureOne and Ernst & Young. A closer look, however, reveals a very different story — namely, the fact that venture capitalists appear to be fleeing the biotech sector with great speed. Private equity and other non-VC funding sources are presumably taking their place, at least… Continue Reading
The credit crunch: A capital bypass for life sciences?
Over at VentureBeat proper, Matt highlights a theory advanced by venture capitalist Keith Benjamin, who argues that the credit crunch now threatening the private-equity boom may have the unexpected effect of boosting returns in technology investments. (Keith puts this all down in his own words on his personal blog and in this contributed piece at VentureBeat.)
Turns out a few people have also been wondering whether a deflating private-equity bubble might also redirect capital to the… Continue Reading
Galen Partners closes $250M healthcare fund
Galen Partners, a Stamford, Conn., private-equity firm that concentrates solely on the healthcare industry, closed a $250 million fund, its fifth. The fund will focus on healthcare IT, medical devices and specialty pharmaceuticals.
The private equity bubble
Forget the Web 2.0 bubble, which is in the process of bursting.
Start worrying about the private equity bubble instead.
Our capitalist system has a habit of swinging between fear and greed (see Stu Phillips’ column today), and right now we’re seeing it lean toward greed • at least in private equity. Wealth has accrued, and investors — many of them public pension plans — are searching for places to put their excess capital. So they’re parking… Continue Reading
Dan Primack launches PEHub, a private equity blog and forum
Dan Primack, the guy who holds court at PE Week each morning and rants about the world of private equity, is launching a blog site Monday. It is called PEHub.
He’ll be blogging, there will be columns from buyout and VC guys, and other ways for folks to participate. Dan, based in Boston, is the most entertaining blogger out there on private equity, but he’s been stuck in an email format thus far. Congrats, Dan. It’s… Continue Reading
Unprecedented amount of money searching for home
U.S. private equity firms have raised a record $177.89 billion, according to Dow Jones VentureOne.
Private equity firms have an unprecedented amount of cash sitting in their treasure chests. Since they are typically mandated to invest it within a certain time frame, this signals that an unprecedented of money is now sloshing around looking or a home within the next year or two.
This has all kinds of complex implications, but one obvious result is that… Continue Reading