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It's actually very profitable and only overhyped by people that aren't currently profiting from it. Returns to venture investments in biotech have outperformed

It's actually very profitable and only overhyped by people that aren't currently profiting from it. Returns to venture investments in biotech have outperformed tech in recent years, some new drugs are generating $5-10B within a few years of launch, and biopharma is the second biggest subsector of VC after software Most people haven't heard of the top biotech VCs and companies because they don't blog or do podcasts but they are very good at what they do And as another commenter said, some of these companies develop drugs that give people with cancer or infants with life threatening genetic disease many more years of healthy life and turn these conditions from death sentences to manageable chronic diseases

haihaibye 7y ago
As a sector or select lucky funds? Source? Nasdaq biotech 3y: +20% Nasdaq tech 3y: +75%
- aaavl2821 7y ago
  As a sector. One source is here: https://lifescivc.com/2016/11/biotech-venture-capital-mythbusting-redux/ https://lifescivc.com/2016/11/biotech-venture-capital-mythbu... Are you referring to Nasdaq as a whole when you say Nasdaq tech? The Nasdaq components aren't really representative of tech startups: https://www.nasdaq.com/market-activity/quotes/Nasdaq-100-Index-Components https://www.nasdaq.com/market-activity/quotes/Nasdaq-100-Ind... Biotech startups IPO at a much higher rate than tech startups and IPO on average 3 years after series a: https://www.baybridgebio.com/blog/ipo_2018_q12019.html https://www.baybridgebio.com/blog/ipo_2018_q12019.html These IPOs give IRRs of 60% on average to series a investors: https://www.baybridgebio.com/blog/venture_returns_ipo.html https://www.baybridgebio.com/blog/venture_returns_ipo.html Biotech VC portfolios have low loss rates and greater portfolio concentration than tech VCs There have been 10-15 new biotech unicorns a year since 2013 or so, on annual VC funding of $5-15B There are plenty of other sources but i don't have access to them atm
  - haihaibye 7y ago
    Thanks, I haven't been following closely, I should start pitching VCs!

haihaibye 7y ago

As a sector or select lucky funds? Source? Nasdaq biotech 3y: +20% Nasdaq tech 3y: +75%

aaavl2821 7y ago
As a sector. One source is here: https://lifescivc.com/2016/11/biotech-venture-capital-mythbusting-redux/ https://lifescivc.com/2016/11/biotech-venture-capital-mythbu... Are you referring to Nasdaq as a whole when you say Nasdaq tech? The Nasdaq components aren't really representative of tech startups: https://www.nasdaq.com/market-activity/quotes/Nasdaq-100-Index-Components https://www.nasdaq.com/market-activity/quotes/Nasdaq-100-Ind... Biotech startups IPO at a much higher rate than tech startups and IPO on average 3 years after series a: https://www.baybridgebio.com/blog/ipo_2018_q12019.html https://www.baybridgebio.com/blog/ipo_2018_q12019.html These IPOs give IRRs of 60% on average to series a investors: https://www.baybridgebio.com/blog/venture_returns_ipo.html https://www.baybridgebio.com/blog/venture_returns_ipo.html Biotech VC portfolios have low loss rates and greater portfolio concentration than tech VCs There have been 10-15 new biotech unicorns a year since 2013 or so, on annual VC funding of $5-15B There are plenty of other sources but i don't have access to them atm
- haihaibye 7y ago
  Thanks, I haven't been following closely, I should start pitching VCs!