Everyone has heard of the monster returns to some venture funds from high-flyng social media and technology companies: Facebook’s potential 800x for Accel, Google’s 350x for KPCB and Sequoia, Zynga’s 100x+ for Union Square, Foundry, and Avalon. These single big tech wins returned (or will return) multiples of their entire funds.
The sad reality is that these types of “halo deal” wins just don’t happen in Life Science venture capital investing. We have great success stories in the 5x-15x range, like Amira, Avila, Enobia, Plexxikon – but 100x+ returns aren’t in the genetics of our ecosystem. The venture model in LS is about higher consistency and lower rates of failure, as discussed previously in this blog.
To read the full, original article click on this link: The Biotech Venture Capital Math Problem - Forbes
