One of my favorite blogs recently posted an excellent article on the funding boom currently taking place in the biotech sector.
I think that this article really deserves a read. Why? Because it goes deeper into the fundamentals of the industry destroying some myths about the figures, very often misunderstood by the crowd.
According to Bruce Booth, despite the gigantic amounts invested in the sector:
– it is not always VC funding;
– it is not equally distributed;
– it is not linked to an increasing number of biotech companies getting financed;
– it is not leading to an increase in the the number of new companies created.
Moreover, after this analysis, the author wonders about the current situation (overfunding?) and what would happen in the next few months when investors would switch to other sectors… Another crucial question also emerges: will the number and quality of new ventures be sufficient to refresh the current ecosystem?
Additional material:
Venture Capital Investing Exceeds $17 Billion For The First Time Since Q4 2000 – PWC – July 2015
Torrid pace of VC investing in H1 sets a new biotech record – FierceBiotech – July 2015
Biotech Investing Hits An All-Time High–But Is It A Bubble? – Forbes – July 2015
Biotech: The Forgotten Bubble – Barrons – July 2015
Should The Biotech Bubble Be Feared? – Bloomberg – June 2015
