BioCentury
ARTICLE | Finance

Ebb & Flow

April 9, 2007 7:00 AM UTC

Biotech venture investing hit record levels in the first quarter, totaling nearly $2 billion. That exceeds the previous high of more than $1.7 billion in the fourth quarter of 2000. VCs cited two reasons for the robust deal flow: the heightened need to get companies through Phase II proof-of-principle data, and an abundance of capital.

Getting through Phase II has been perceived as a requirement on the path to an exit for several years, but David Mack of Alta Partners said the expectations for the construction of Phase II trials also have been stepped up, in part due to a string of Phase III disappointments...