Ebb & Flow

Most of the private companies that raised money in the first half of 2000 - when the genomics "revolution" was driving super-high octane valuations - bought about a year-and-a-half of cash, which would put them in money-raising mode right about now. But with valuations falling, many could end up doing down rounds unless they can get existing investors to cooperate.

Michael Steinmetz, general partner at MPM Capital, already is detecting the squeeze. "We're seeing some companies who raised money in the first half of last year who are having some difficulty supporting their valuations, so we've seen some flat rounds and some down rounds," he said. ...