Health Care Venture Capital Key Terms

Use health care venture capital key terms to expand investment opportunities

Health care venture capital firms are in the business of funding medical companies that show promise in early stage product development. For instance, should a company have a promising treatment or medical product but lack the finances, health care venture capital firms can help solve this problem. Investing in a health care venture firm can be risky but the returns can be well worth the effort. It was venture funding for a heart treatment drug that eventually led to the discovery of Viagra. However, before you invest in a health care venture capital firm, it's important to understand some of the health care venture capital key terms.

 

Target market selection

Target market selection is the selection process to choose the health care market you want to invest the venture capital in. The market can often be a prime determinant in health care venture funding.
Try: Study the target market selection tutorial available at Net MBA. Read Health Care Corporate Finance News  for more information about venture funding.

Health Care Financing Administration

The Health Care Financing Administration controls the funding for Medicare and Medicaid in the United States. The Medicare and Medicaid programs account for over a trillion dollars a year in medical spending. If a health care venture fund can invest in a product or program likely to receive approval by the Health Care Financing Administration, it's much more likely to become profitable.
Try: Evaluate the scope and mission of the Health Care Financing Administration for more details.

Development phase

The development phase for a health care drug or product is often the longest and most important. It's in this stage that a health care company tests the viability of the product. Health care venture capital firms need to monitor this phase of the product life cycle very closely.
Try: Examine the development phase primer from Master Control for more information.

Pipeline

In the health care industry, the pipeline refers to how many products a company has in development and their various stages. Investing in a company where most of their products are early in the pipeline can be risky.
Try: Assess the pipeline primer available from Money Terms for more information on the process.

U.S. Food and Drug Administration or FDA

The U.S. Food and Drug Administration or FDA regulates all medical products coming to market. FDA approval is the last and most important step in the medical product development process.
Try: Review the U.S. Food and Drug Administration rules and regulations information. Read Venture Capital Dispatch to learn why health care venture capitalists keep close tabs on the FDA.

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