19 April 2010

Venture capital investments are growing, especially in biotechnology

In the first quarter of 2010, the volume of venture financing of the biotechnology sector in the United States increasedIlya Dugin, Farmvestnik, based on AP materials: Venture-cap investments rise in 1Q, as optimism up
In the first 3 months of 2010, the volume of venture financing of start-up American companies increased, reflecting the growth of optimism in improving the economic situation.

In 2009, it was more difficult for start-up companies to find a buyer or carry out an IPO due to a sluggish economy. This means that it was problematic for venture investors to make a profit on the invested capital, and, as a result, they were reluctant to invest in new companies.

According to a study conducted by analysts from the consulting company PricewaterhouseCoopers and the National Venture Capital Association based on the Thomson Reuters agency, in January-March 2010, the volume of venture financing increased by 38% compared to the same period in 2009 and amounted to $ 4.7 billion. However, this is 10% lower than in the fourth quarter of 2009. 681 companies received investments, which is 7% more than in the first quarter of 2009.

As before, during the reporting period, the largest part of the invested funds fell on start–up biotech companies - US$ 285 million. This is 31% higher than in the first quarter of 2009. Although the volume of investments in this sector decreased last year, investors continue to invest heavily, because large pharmaceutical companies are always interested in buying start-up companies with promising developments. 

Portal "Eternal youth" http://vechnayamolodost.ru19.04.2010


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