DiObex: The 2009 Biotech Graveyard

Company: DiObex
Based: San Francisco

What went wrong: Citing its inability to raise additional venture funds for acceptable terms, DiObex sold off its one asset, a diabetes drug, and shuttered operation in April. The company, which was founded in 2003, had raised $30 million since its inception and would have needed $20 million to $30 million to fund Phase II trials of the drug. Investors included Domain Associates, Inventages Venture Capital, FirstMark Capital, Sofinnova Ventures.