Medical venture capitalists used to try cut their financing risk by recruiting several investors into funding rounds, but the challenge of keeping large syndicates together is causing some to rethink this approach.
A broad syndicate is supposed to reduce the risk that a start-up will run out of cash and enable the company to bargain from a strong position with new investors or collaborators. When a syndicate is united, it can do just that. But the difficulty health-care investors have had in selling companies or taking them public recently has forced them to hold positions longer. As years go by, investor groups that started strong can fray.
To read the full, original article click on this link: Some Medical Venture Investors Rethink Syndicate Strategy - Venture Capital Dispatch - WSJ
