How difficult has it been for biotech companies to raise money in the last couple of years?
Clearly, fundamental innovations are occurring in biotechnology. The other side of that coin is whether investors want to take a risk on biotech relative to other technologies. For the past few years, investors didn’t want to take the risk. That’s beginning to change dramatically because they have seen success stories. Q: The last year has been slow for the biotech VC community. What has changed while investing has been quiet? A: There’s a major consolidation going on in investor groups who look at the industry — both public and private. Investment banks have consolidated to a dramatic degree. Biotech isn’t an area where bankers can get $50 million fees. The companies are too small, so efforts and coverage by analysts is down. Who’s out there championing the industry? We’re seeing some serious consolidation on the venture-capital side, too. Over time there’ll be fewer venture dollars. In 2001, $3.4 billion was invested. So far this year, some $400 million has been invested. Q: What ar
