Apparently, it has been recently discovered that investing as a VC player in biotech ventures can result in a LOSS OF CAPITAL. Yes. Let me repeat. If you invest in a biotech VC fund (or company), you could lose it ALL.
Shikhar Ghosh, a senior lecturer at Harvard Business school, made this startling discovery. In studying over 2000 companies that received venture funding between 2004 and 2010, he found that at least 75% did not return investor's capital.
Ok now. What might this mean to you as an investor? Hmmm. Maybe you shouldn't invest money in a VC deal if you can't afford to lose the capital. There I said it. Now how is this different than your understanding about this type of investment say --- 5 minutes ago? See the WSJ story for the details.
Posted by Bruce Lehr Sep 23rd 2012.