Venture portfolio balancing

Discussions with a cross section of VCs indicate that no matter how much they differ on the value of the de-risked model, the majority pursue some kind of balanced portfolio approach that includes the full range of ideas from de novo biology to de-risked models. The difference is in how the portfolio is weighted.

Some VCs have always invested heavily in the de-risked model. Mike Powell of Sofinnova Ventures estimates that three-quarters of his life science investments start downstream from de novo discovery. They include spinouts, companies based on physician-started INDs and companies based on clever ways of using existing drugs for new indications. The fund has been investing in this way since 1997...