Ebb & Flow

The venture community last week provided multiple examples of its low tolerance for risk. The three companies that all closed significant rounds last week - Xanodyne with a $170 million series A1, Affymax with a $60 million series D and Ilypsa with a $36 million series B - each have a version of risk reduction. Xanodyne already has approved products and is bulking up its sales, while Affymax and Ilypsa are developing products with known mechanisms that address large markets. In addition, the three financings all are geared toward getting the companies to an exit event.

Xanodyne's financing was led by MPM Capital, which put in $50 million - the firm's largest single investment ever. Other investors included Apax; Perseus-Soros BioPharmaceutical Fund; AIG; Healthcare Ventures; Essex Woodlands; Blue Chip Venture; and Coleman Swenson Hoffman Booth...