Embryonic stem cell research, once again in the political crosshairs following last month’s court ruling halting most federal funding, has an even bigger money problem.
Venture capital investors say they have been steering clear of the nascent technology,
due to its high-profile legal and regulatory woes, as well as to
uncertainty about stem cell business models. The current constraints on
both public and private capital for stem cell research, analysts say,
will likely result in a slowdown in innovation that could have long-term
consequences for biotech clusters like Boston.
While there is a lot of federal money at stake, there is even
more potential private capital funding that is potentially jeopardized
by regulatory holdups. Companies that report that their work deals with
stem cells have raised $970 million over the past five years, research
from Dow Jones VentureSource shows. Venture capital funding for stem cell research peaked in 2008, according to the National Venture Capital Association,
with 21 venture rounds, worth $199 million raised by 15 companies. The
number of investment deals for the first half of 2010 could actually
beat 2008 levels, with 11 deals struck by nine companies year to date.
But investors say many of the companies receiving funding these days are
pursuing adult stem cell research, which is not affected by the ruling.
To read the full, original article click on this link: Vcs Like Government Turn Back On Stem Cell Funding - Heavy Doses - Portfolio.com
Author: Julie M. Donnelly
