Venture Capital - A Significant Source of Biotech Funding

Since joining New 2nd Capital as CFO, experienced CPA Kate Merli oversees all of the company’s cash flows and financial review processes. Prior to entering this role, Kate Merli managed all administrative accounting processes for the biotechnology-focused venture capital firm Atlas Venture. In 2017, the firm launched a $350 million dollar fund for startups in the biotech space. 

Venture capitalists have poured billions of dollars into promising early-stage biotech startups. Last year was a record-breaking year for the biotech industry, which raised more than $9 billion dollars in venture capital. 

Since early-stage investment in medical treatments can be a risky venture, many venture capital firms work with data scientists to analyze the information gathered from scientific journals and clinical trials to assess potential return on investment. 

Other factors such as competent management and commercialization potential encourage venture capital firms to invest in new but promising research, which in turn drives innovation. Besides a source of capital, venture capital firms are also a valuable source of industry knowledge and financial connections for up and coming biotechnology companies.