Flight to liquidity

Private biotechs looking to attract crossover investors need to be prepared to hear "no" more often, as the uncertain IPO market is eliminating an arbitrage opportunity that helped fuel the biggest and most successful public exits. The result is many in the crossover crowd are directing more attention to liquid stocks.

This flight to liquidity is pushing IPO prices down, and VCs are increasingly emphasizing the need to fund their companies to key inflection points that, in the absence of a public exit, could at least attract pharma suitors. ...