VCs see 2Q11 uptick in biotech deals as a blip; funds continue to be culled out
A report showing a 46% quarter over quarter rise in VC funding for biotech companies is just a blip on the screen. Despite the report's headline numbers, VCs think the real story still is the downward trend in both the number of firms focused on life sciences and the dollars they can raise from LPs.
But venture players also say this isn't necessarily bad, as it could improve the overall quality of VCs and focus more funding on fewer, but better, companies.
According to the report unveiled last week by the National Venture Capital Association and PricewaterhouseCoopers, venture dollars flowing into life science companies increased 37% to $2.1 billion in 2Q11 from 1Q11. Biotechs fared even better, as their funding rose 46% to $1.2 billion in 2Q11 from $846 million in 1Q11. VC investment in the medical device and equipment space