The venture capital industry focus on biotechnology has shifted, ebbed and flowed with the times. If you are working to find biotech venture capital funds to finance your business plan, it is important to keep in tune with the latest news and trends that are guiding this industry.

Biotech venture capital firms have not escaped unscathed from tough economic times, although many experts feel the biotech VC industry is better positioned than others in terms of stability. Additionally, clinical trials remain an important component that draws capital investment to these fledgling businesses. If you want to keep in the loop on the biotech capital venture business, focus your energies on the following areas:

1. Look for news about clinical trials that receive VC funding.

2. Analyze information about the economy's impact on biotech venture capital firms.

3. Subscribe to online news publications, blogs and RSS feeds to make sure you receive the latest biotech venture capital news.

Action Steps
The best contacts and resources to help you get it done

Recognize the importance of clinical trials to biotech venture capital

Many biotech VC organizations cannot resist the appeal of clinical trials that will advance the cause of science and medicine. Read any articles you can get your hands on about the types of clinical trials that are receiving funds. Your efforts may help you align your own business plan to achieve equal success.

I recommend: FierceMarkets' Biotech RSS feed features news stories about the venture capital industry focus on biotechnology, including this article about a pharmaceutical company receiving seed money earmarked for clinical trials. HighBeam Research's subscription newsletter can direct you to current biotech VC news, including this article about Cambridge Biotech raising money to test an Alzheimer's drug.

Understand the impact of a slow economy on the biotech venture capital industry

Venture capitalists are predicting a slowdown in seed and early stage investment in response to challenging economic times. Nevertheless, some analysts believe that, compared with other VC industries, it may very well fare better than most.

I recommend: Genetic Engineering & Biotechnology News reports that biotech VC firms have suffered as a result of a struggling economy. MarketWatch, an industry news publication, included a press release from the National Venture Capital Association discussing the upcoming venture capital funds outlook.

Use blogs and RSS feeds to keep up with venture capital industry focus on biotechnology basics

Nothing will fine-tune your business plan, and help you figure out who best to show it to, than being up to speed on what is going on in the industry. Signing up for VC and biotech blogs and RSS feeds is an easy way to make sure the latest trends and news gets delivered right to your PC.

I recommend: The BioTech Weblog is an excellent source for understanding the latest and greatest in regard to biotechnology. Biotech Blog has RSS feeds and has articles about the biotech field and biotech ventures.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider professional networking sites to further your attempts for funding your biotechnology venture. Once registered, these sites may put you in touch with investors, biotech professors and industry peers. Expanding your professional network can potentially increase your chances finding biotech VC firms interested in your business plan.

Venture capital industry focus on biotechnology is booming as market trends diversify into high-profile global arenas, including industrial, environmental, health care and agricultural. Although the issue of stem-cell research remains a political and ethical hot button, the controversy has not slowed down venture capital interest. Universities and biotech companies, both well-established and fledgling ones, vie for funding, while venture capital firms explore the viability of biotech startups and emerging trends.

If you are a startup company seeking biotech venture capital, present a strategy that shows your product is sustainable in a changing market. Also study the valuation and funding models that largely influence the venture capital selection process. Then you are ready to search the various biotechnology venture capital funds available to startups. Consider the following points in your search:

1. Find consultancy to help you prepare a successful business strategy to present to biotech venture capital firms.

2. Search biotech VC firms that provide capital to startups, especially those with a focus on early-stage technology.

3. Use forums and sites that match startups with biotech venture capital funds.

Action Steps
The best contacts and resources to help you get it done

Consult experts who offer strategic planning to help you obtain biotech venture capital

A good business strategy is key to obtaining venture capital, especially in the area of biotechnology. Find a consultancy to help you prepare a successful business plan. Look for agencies with extensive experience in deal making as well as proven strategic and analytical capabilities.

I recommend: PharmaVentures specializes in deal making for pharmaceutical and biotechnology companies. It offers a range of strategic and analytical services and a proprietary database of information assets. BioMed Capital Group offers expertise to biotech companies that includes well-developed planning methods, competitive advantages and strategic alternatives.

Find biotech venture capital firms that provide funding for early-stage technology

There are venture capital firms that fund various phases of technological development. Some firms specialize in early growth companies. Find a venture capital firm that focus on startups and early-stage biotech products to optimize your chances for funding.

I recommend: AmeriFinancial invests in startup companies with a primary focus on early-stage tech, medical and consumer companies. It provides equity capital of up to $10 million to companies with potential of great returns and has invested in more than 50 companies. It also offers other services to ensure an optimal investment. ARCH Venture Partners is a leading provider of life science venture capital to companies with groundbreaking technologies. ARCH manages a portfolio nearing $1.5 billion and has invested in more than 120 companies.

Find sites that connect companies with biotech venture capitalists

Certain websites match up entrepreneurs and small business owners with angel investors. It's a simple process: Post your funding request, which is then exposed to thousands of potential venture capitalists. A match in criteria is followed by an email introducing the parties to a possible combined venture.

I recommend: Go BIG Network offers small business owners and startups an opportunity to request funding from a select 4,000-plus investors. You can also search for investors by funding portfolios. Genesis Exchange finds medical and biotech investors for companies. With more than 1,000 listed investors, it has secured more than $400 million in term sheets for its clients. The company's search database provides full investor profiles and a chance to showcase your business. Membership is required.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To gain further insight about venture capital industry focus on biotechnology, take advantage of free online white papers as well as biotech and finance blogs.

The venture capital industry focus on biotechnology can be volatile. Its trends are closely linked to other ventures in similar capital industries like green technology. You're likely to find an enormous amount of coverage relating to these and other closely interlinked industries in technology, biotechnology and business oriented publications in print and online.

Getting the best news means exploring the right angles from the best sources. You can get updates on venture capital industry focus on biotechnology news and trends by:

1. Paying close attention to biotech venture capitalist insider sources;

2. Reading business and technology news magazines that discuss life science venture capital;

3. Checking frequently updated biotech and venture capital blogs for interesting perspectives.

Action Steps
The best contacts and resources to help you get it done

Get biotech VC news from inside sources

It pays to listen to those in the know. Turn to inside sources like venture capital or investment firms and industry watchdogs to get the latest news on the volatile ups and downs of the biotech VC industry. You'll find that its well-being is closely linked to that of other, similar venture industries.

I recommend: Ernst & Young releases a yearly Global Biotechnology Report that discusses news and trends in the financing and venture capital front. FierceBiotech, part of the FireceMarkets network, bills itself as the industry's daily monitor and forecasts a survival-of-the-fittest environment for biotechnology venture enterprises.

Turn to business and technology news magazines for the latest news and trends about biotech VC firms

Established and well-respected third-party business publications or news publications with a clear focus on technology are among the best sources for information that's focused on biotechnology venture capital developments.

I recommend: McGraw-Hill's BusinessWeek features regular technology articles that discuss where venture capital is being distributed. In this case, biotech venture capital firms are being drawn toward green technology. You can learn about biotech venture capital from business publications like Xconomy, which tends to focus more on the dollar than prospective industry developments.

Update yourself with venture capital and biotech blogs

Blogs or weblogs offer frequently updated, relatively informal glimpses at developing news and trends. Depending on who is running the blog, you may be getting snippets of boardroom thoughts from a venture capital executive, the latest journalistic updates from a respected periodical, focused information for technophobes or all of the above.

I recommend: The Seattle Post Intelligencer hosts a life sciences blog on its website that highlights ongoing trends and new developments in the life sciences/biotech field, locally and with a wider lens. The Biotech Weblog is a frequently updated source for everything biotech, including news, trends and directories of biotech investment firms.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Even respected news magazines can mess up from time to time, so if you see biotech venture news that looks too good to be true, consider doing your own double-checking with primary sources.