Archive for the ‘Venture Capital’ category

Venture Capitalists See Massive Opportunity in Biotech Sector

October 8, 2013

Lindsay Rosenwald co-manages an investpment partnership that specializes in biotechnology investment. In addition to his professional obligations, Lindsay Rosenwald contributes to a variety of philanthropic organizations through the Rosenwald Foundation.

BiotechInvestment in the biotechnology sector has surged in 2013, following more than a dozen initial public offerings. In addition to the funds raised through these IPOs, experts report that venture capitalists poured $1.3 billion into the industry in the second quarter. A 41 percent increase over the first quarter, the sum encompasses more than 100 deals. Furthermore, funding for early-stage start-ups doubled to $328 million in the second quarter, demonstrating an enthusiasm for the industry that has not existed since before the financial crisis.

Unlike pharmaceutical companies, which typically allocate sales profits from drugs on the market to fund new drug development, biotechnology firms generally operate at a loss during their extensive research and development phases. Biotech firms have produced some of the most innovative therapies on the market; however, as a result of their business model, they require increased investor funds.

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