Ebb & Flow

If valuations are down, the inflow of funds to biotech is decidedly not contracting. The industry raised $5.7 billion in the first quarter, a fact that probably will bring scant comfort to the queue of companies sitting parched at the dry IPO trough. But if this pace can be sustained, the industry would raise nearly $23 billion, second only to the $37.2 billion raised in 2000.

With venture capitalists still sitting on a pile of dry powder, private equity deals made up 17% of the first quarter's action. The $960 million raised by 71 private companies was up $169 million (21%) from the first quarter last year, and brings the trailing 12-month venture total to $4.3 billion. ...