Private and Public “Cradle to Maturity” Financing Patterns of U.S. Biotech Ventures (1970–2001)

Abstract

Since 1970, U.S. biotech firms have raised over $141 billion in private and public financings. All types of financings in the 1970–2001 timeframe are investigated from “cradle to maturity,” or “cradle to grave.” The objectives are to determine: 1) if there are specific financing patterns that result in higher probability of success; 2) the impact of stock performance on management's financing decisions; 3) the relationship of biotech hot and cold cycles to general market cycles; 4) the relationship between public and private markets; and 5) the principal determinants of biotech firm survival, including the effect of venture capital.