Share This Story  |   Comments (0)

The message coming out of the Rice Alliance Life Science Technology Venture Forum Wednesday was encouraging, but somber: While it takes less time to get a drug or device to the market, it's getting harder to find the financing to get it through trials. Evan Melrose, a managing director at Austin, Texas-based PTV Sciences, which is known for its investment in M.D. Anderson Cancer Center-born cardiovascular stent developer IDev Technologies Inc.and has just raised its second fund, said midstage trial companies used to be able to find financing or exits, but not now. "The Nasdaq is not a financing outlet anymore," he said. "You have to get programs further on venture capital funding until the exit. You have to be capital efficient on the front-end." Echoing the sentiment was Jerald Cobbs, managing director of Houston-based Signet Healthcare Partners, which has $200 million under management and is launching its fourth fund next year: "The bar for financing has gotten higher. Buying blue sky has hurt." Christopher Wasden, CEO of Houston medical device incubator SimplexityMD (and a former investment banker at J.P. Morgan Chase & Co.), said it often means meeting 300 angel investors and VCs to get a term sheet. "You have to rattle the bushes. Investors are only investing in revenue-generating companies." Even if you manage to take your company public, it doesn't mean the venture capitalists are home free, said Kristina Burow, a principal at Arch Venture Partners in San Francisco: "The IPO is not necessarily a liquidity event." Kevin Lalande, a principal at Austin Ventures, advised one presenting company, Houston adult stem-cell startup Regenetech Inc., to be wary of listing on the AIM market in London: "AIM is feeling a little long in the tooth now." — Claire Poole

---

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments: (you may use HTML tags for style)

Please only click "Post" once. It may take a few moments to process.