Biotech venture capitalists could once get away with “Field of Dreams” tactics, but the recent dearth of exits is forcing them to sharpen their strategies.
Venture firms used to assume that if they built a promising biotech company, acquirers and the public markets would come knocking. That was true in the late 1990s and early last decade, when public investors showered these companies with cash. With few biotechs going public successfully, however, investors are now grooming most of them to be sold. This involves getting these companies to know their likely buyers sooner and better.
“One of the things biotechs haven’t done well enough in the past is understand what the customer wants,” said Christopher K. Mirabelli, managing director of HealthCare Ventures. “The customer isn’t the public anymore. The customer is the pharmaceutical and biotech industry.”
To read the full, original article click on this link: Biotech VCs No Longer In A “Field Of Dreams” - Venture Capital Dispatch - WSJ
Author: Brian Gormley
