Credit squeeze begins to have an impact on VC

The Star-Ledger offers a new perspective on the investment scene in biotechnology. Analysts tell the newspaper that the credit crunch has put a squeeze on private equity groups who can no longer use cheap debt to buy into developers and then flip them. As a result, VCs are accepting smaller returns on smaller deals. With Big Pharma on the hunt for acquisitions, venture groups are less likely to relinquish shares before a big buyout. And buyouts have replaced IPOs as a key funding stage for biotechs.

- read the report from the Star-Ledger