Abstract

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CORPORATE VENTURE CAPITAL AND TARGET COMPANIES PROFILING IN BIOPHARMA INDUSTRY

Francesco Corea


Corporate venture capitals world has changed in the last few years and it keeps evolving over and over. The biotech and pharmaceuticals sectors are probably two of the main industries that experienced drastic alterations, and this is reflected in the companies that corporate venture capitals target as possible investments. Based on a sample of almost 400 deals occurred in over a decade, it has been possible to identify an ideal investment target with a higher probability of attracting venture funding. The results from the ten years dataset are meaningful, and they support the hypothesis that CVC’s risk profile is becoming more risk-averse. CVCs indeed prefer to invest in target firms that are young even though no more startups, listed, that develop moderately risky molecules but that are in early-stage, and horizontally integrated with other biotech companies. The simple technique and the unique and innovative dataset built provide a scalable and reproducible analysis that could be extended to other sectors or time frames.