According to this post from Life Sci VC, corporate Venture Capital groups are now essential to the biotech ecosystem and provide the bulk of capital to fudn new companies -- at least from Atlas Funds point of view -- which appears to be a representative one indeed.
From Atlas data, corporate VC had only 5% involvement in their projects from 2000-2005, that rose to 33% from 2006-2008 and now stands at a whopping 67% from 2009-present. What's more? The funds range in size from $100 M - $500 M and account for at least $2.5 B in VC money, according to author's estimates.
That's a lot of money. Money that new companies in biotech are increasingly dependent upon. An Xconomy underscores this today with a piece on the dearth of cash available to biotechs from traditional VC sources. Have a read. Clearly the availability of more money is needed to get these new biotech ventures off the ground to take advantage of innovative science.
Posted by Bruce Lehr Jan 23rd 2012