View from Italy: COVID-19 stalls early-stage companies, could create bargains for international VCs

The heavy reliance of Italy’s biotech sector on academic labs and angel investors could result in many companies facing existential risk during the coronavirus outbreak. If they can hang on, the silver lining is that the combination of low valuations and Italy’s solid science could attract new attention from international VCs.

The Italian healthcare system will be reeling for some time from the stress of a steep increase in COVID-19 cases that diverted almost all hospital resources to combat the crisis. In addition to putting clinical milestones in jeopardy, the crisis has brought preclinical work to a near standstill. ...