New Trends in Financing Biotechnology

Patterns of biotechnology financing have undergone subtle shifts in recent months, and the shifts are an indication that the industry is moving from childhood into adolescence. Once the central source of support for U.S. biotechnology, venture capital has become somewhat less important, while tax-saving R&D limited partnerships are on the rise, and the trickle of public stock offerings has become a torrent. Around the world, but especially in Europe, governments are encouraging indigenous efforts in biotechnology. Many are backing up their encouragement with cash.