Biotech Venture Capital: The Investment Decision Process

There are only a few dozen top life science venture capital (VC) funds yet no formal study to our knowledge has evaluated what differentiates the firms or investing styles. We attempt to explain how the top life science venture capital investors evaluate investing opportunities in private biotechnol...

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Bibliographic Details
Published in:The journal of private equity 2008-07, Vol.11 (3), p.85-95
Main Authors: Meyerson, Geoff, Agge, Ameya
Format: Article
Language:English
Subjects:
Biological sciences
Biotechnology industry
Business structures
Capital investments
Financial investments
Geography
Intellectual property
Interviews
Investment decisions
Investment strategies
Investors
Life sciences
Missing data
Pharmaceutical industry
Pharmaceutical preparations
Private equity
Studies
Valuation
Venture capital
Venture capital companies
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Summary:There are only a few dozen top life science venture capital (VC) funds yet no formal study to our knowledge has evaluated what differentiates the firms or investing styles. We attempt to explain how the top life science venture capital investors evaluate investing opportunities in private biotechnology companies. While this article does not attempt to teach the proper way to invest, since clearly there are as many different styles as there are venture firms, the authors hope to shed some light on how some of the best biotechnology investors approach companies and investment decisions. The results suggest that there is a link between a style of investing and the people's backgrounds at these firms. Furthermore, there is some loose correlation to the investing style to the returns enjoyed. Lastly, a few myths about the industry are debunked.
ISSN:1096-5572
2168-8508
DOI:10.3905/jpe.2008.707205