One person’s opinion on how the market is changing, however, VC money is still available, the bar is a lot higher and so are the risks with the biotech industry, so decision making processes have become more research and time intense.  The business intelligence to creating a calculated risk investment are getting more complicated as do the processes for bringing a product to market.  At a meeting of VCs in San Diego relating to biotech some of the expressed their thoughts on the market can be read here, including to almost never go in alone today.  BD   image

Have angel investors become the new venture capitalists? Earlier this month, my colleague Wade Roush reported on a presentation by James Geshwiler of the Boston-area group CommonAngels about the changing nature of angel investing. Between Geshwiler’s comments and what I’ve been hearing around Seattle, it seems like the dynamic between angels and VCs has shifted in the tech community.

—Valuations of companies are substantially down. “You’re seeing huge decreases, 80, 90 percent in some cases, and about 50 percent on average,” he says. That must be factored into any investing strategy.

—Angels are getting a chance to invest in deals that used to go to venture capitalists. “VCs have been focusing on triage,” Entress says. “Everyone’s worried about financing risk going forward. If you’re worried nobody’s going to fund a company down the road, you’re going to hold back.”

—Angels can acquire existing companies and websites at the right price. “There are opportunities for interesting strategic combinations,” Entress says. As recent examples, he points to his acquisition of Seattle startup Judy’s Book last year, as well as Pet Holdings’ pickup of Fail Blog

Top Three Trends in Angel Capital, from Seattle Investor Geoff Entress | Xconomy


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