We’ve heard warnings for a couple of years now that the chickens would come home to roost in the biotech venture capital scene. Quite a few VCs just haven’t delivered the returns to back up all their talk, and you can’t wait around forever for things to improve.
This drama is going to be long and painful, and it’s only just beginning. There were a lot of firms that raised their last funds before the financial crisis of 2008, and after putting much of the cash to work in startups, they are finding it much harder to raise new funds today. While some of what’s happening may be a necessary culling of the weaker members of the VC herd, this trend is going to make it tougher than ever for some worthy entrepreneurs to raise cash for new companies to develop drugs, medical devices, and diagnostics.
To read the full, original article click on this link: Biotech VCs Have a Problem, and it Will Get Worse Before It Gets Better | Xconomy
