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Venture Capital - Research Paper Example
Author : zreichel
Finance & Accounting
Pages 5 (1255 words)
Venture Capital Table of Contents Introduction: Pharmaceutical Corporate Venture Capital (CVC) 3 Venture capital funding to Pharmaceutical Industry in United Kingdom (UK) 3 Venture Capital Returns in Pharmaceutical Industry 6 Alternative methods of Financing 8 References 9 Introduction: Pharmaceutical Corporate Venture Capital (CVC) The medical and life science sector was the second highest corporate venture capital investment sector in the year 2007 and 2008 respectively with an investment amount of US $959 million…
As per the survey conducted by the Ernst &Young in the year 2008, there were 56 percent of exits of venture capital companies out of which 12 percent of the companies belonged to the pharmaceutical and health care sector (Ernst &Young). Healthcare companies like Novartis Venture capital division and Johnson and Johnson Development venture capital divisions earned meager amount of profits during recession. The pharmaceutical companies also make further investments in life science companies across biotech, medical devices and diagnostics. The main motive of the venture capital divisions of pharmaceutical companies is to provide startup capital to other medical companies which have a better prospect in the future. For example the Novartis venture capital division provides venture capital fund only to those companies which adhere to their corporate development plans. ...