I had the opportunity to attend last week’s Venture Capital Update at the Venture Club of Indiana. The panelists were Don Aquilano (Allos Ventures), John Diekman (5AM Ventures), and Rob Smith (Petra Capital). Of the venture firms represented, only Dr. Diekman’s 5AM Ventures is active in the life sciences sector.
I jotted a few notes and comments that I found interesting during the Venture Club meeting.
- Concerns about life science sector in large part because of the increasing regulations.
- VCs are having a hard time raising money right now. And that this is a very good market for venture investments.
- Investor pitches should be interactive, conversational. Entrepreneurs should be good listeners too. Body language very important.
- Is Indiana still a flyover state regarding venture investing? It shouldn’t be. Great universities, business friendly government, seasoned executives, several start-up successes (Aprimo, Exact Target, T2, Angie’s List, Suros Surgical, Marcadia).
- Success breeds success.
- Hot healthcare trends are orphan diseases and stem cells.
- Recurring revenue streams are always more attractive.
- Medical device tax might have some impact on venture investing. Bigger impat, though, will be the FDA.
- Crowdfunding model too soon to tell. Likely won’t change the VC market.