September 1, 2010 source: xconomy
Brad Webb, Venture Partner at Claremont Creek Ventures, was featured today on the xcononomy website discussing the implications for venture investment of the recent judicial ruling regarding federal funding for stem cell research.
Last week’s federal district court ruling ordering an immediate halt in federal funding for stem cell research has thrown academic research circles into a state of confusion. This has caught the attention of the VC community, as the venture-backed biotech world is largely dependent on technology developed in academic institutions, and the cutting-edge research produced by universities is crucially dependent on federal grant funding…
…The legal system and historians will have to decide. But the episode illustrates that the federal government continues to be an engine of unintended consequences. In this case, depending on NIH funding turned out to be a risky financing strategy for university research departments. This fact will surely alter the calculations of venture firms and biotech industry executives, for whom risk assessment is a constant chore. Investors hate uncertainty—and the questions created by the constantly shifting legal landscape surrounding stem cell research pervade the medical technology industries today.
[read the full article at xconomy]