Thursday, January 24, 2013

Is the LP bias against investment into life-sciences contra-logical?


17 January 2013

Early Stage Biotech Showing Positive Signs of Scaling Its Wall of Worry by Bruce Booth on Forbes



Despite the apparent consensus opinion at JPM that innovative new start-ups are continuing to attract capital, I wonder if in reality the venture funding, particularly from big-pharma CVCs, is mostly channeled into development/ acquisition of potential clinical candidates - THIS anomaly of an 'uncharacteristic aversion of domain biggies themselves towards investing into early innovation that'd feed their own pipelines' is WHAT I feel is the primary reason for a strong bias in the LP universe against investment into Life Sciences......

1 comment:

Unknown said...

Setting aside the bias towards life-sciences VC for a while, within the alternative asset class there's a marked LP bias towards VC itself…. – once again contra-logical since a VC funded early innovative enterprise is what eventually would mature into a high-IRR PE opportunity for the same investing LP....

Guess the investing LPs are guided by individual risk-aversion & short-term interests rather than the collective wisdom of seeding for bigger returns