Pharma corporate venture was back in the biotech news today with the release of Burrill & Company’s June 2012 report. An interesting article by Vinay Singh evaluated the impact of Pharma corporate venture capital (CVC) investing, and the key takeaway is that CVC-backed companies have a higher rate of overall success than those without their involvement.
While a similar takeway has been published before by Windhover’s StartUp about a year ago, these data suggests a fairly robust effect from a large dataset. The analysis includes 2907 therapeutics companies that raised venture capital dollars between 2000-2010 across 5100 rounds of financing. Corporate VCs were investors about 10% of companies, and this pool of 286 companies had what appears to be a markedly higher hit rate: a ~60% higher rate of licensing deals, M&As and IPOs. The figure from the article is pasted below:
