Comments on: The credit crunch: A capital bypass for life sciences? http://deals.venturebeat.com/2007/08/24/the-credit-crunch-a-capital-bypass-for-life-sciences/ News About Tech, Money and Innovation Sun, 22 Nov 2009 18:57:43 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: DV Henkel-Wallace http://deals.venturebeat.com/2007/08/24/the-credit-crunch-a-capital-bypass-for-life-sciences/comment-page-1/#comment-496246 DV Henkel-Wallace Sun, 26 Aug 2007 08:49:27 +0000 http://venturebeat.com/2007/08/24/the-credit-crunch-a-capital-bypass-for-life-sciences/#comment-496246 The link is tenuous at best. VC investments are hardly liquid (post capital call anyway) and life sciences have the longest time-to-exit (though the ones with successful exits tend to be quite good). The alternatives are quite liquid (as you can tell with the speed of which the credit crunch can develop). In short I think the argument is a stretch. The link is tenuous at best. VC investments are hardly liquid (post capital call anyway) and life sciences have the longest time-to-exit (though the ones with successful exits tend to be quite good). The alternatives are quite liquid (as you can tell with the speed of which the credit crunch can develop).

In short I think the argument is a stretch.

]]> By: Ogan Gurel http://deals.venturebeat.com/2007/08/24/the-credit-crunch-a-capital-bypass-for-life-sciences/comment-page-1/#comment-495336 Ogan Gurel Fri, 24 Aug 2007 23:09:50 +0000 http://venturebeat.com/2007/08/24/the-credit-crunch-a-capital-bypass-for-life-sciences/#comment-495336 I agree with you that the interest rate relationship is not a hard one. But there certainly is a stimulus – in the context of higher interest rates (and higher inflation) for investors to seek higher reward (and hence higher risk) venues. Whether this translates directly into life sciences venture funding (relative to other capital allocation) is a matter of more than just interest rates, but certainly a phenomenon that I think both of us agree will be closely watched. I agree with you that the interest rate relationship is not a hard one. But there certainly is a stimulus – in the context of higher interest rates (and higher inflation) for investors to seek higher reward (and hence higher risk) venues.

Whether this translates directly into life sciences venture funding (relative to other capital allocation) is a matter of more than just interest rates, but certainly a phenomenon that I think both of us agree will be closely watched.

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