High risk, long term and failure rates all come in to play. There have been companies who have had clinical trials out there that have failed, and everything of course is sold and packed up at that point.
It is becoming much more difficult to get FDA approval this year with the new conservative approach so the industry wants to educate Congress on how important VC money is the to economy. With the economy the way it is at present, the timing might be very good to keep the R and D dollars flowing in the biotech direction. The video goes back a way in history to remind us of some of the large corporations that were started with VC backing. BD
The National Venture Capital Association wants policymakers to know how important venture capital investors and venture-backed companies are to the economy. Over the next few weeks, the NVCA -- the venture industry's association based in Arlington -- plans to send this video to key members of Congress as the organization lobbies a number of committees for policies favorable to investors as well as the companies they support.
The NVCA is now trying to get involved in health care reform and energy legislation, since life science start-ups and clean tech firms are garnering a lot of investment and attention these days. Capital gains tax rates, for example, are set to expire in 2010. The NVCA wants to current rates to remain in place to encourage the types of high-risk, long-term investing that is required to support biotech firms and alternative-energy technology.
She said the organization is still trying to find the best way to get the video to lawmakers.