Complaining about VCs shorter gestation periods?

Funding in the lifesciences sector is seen as a mammoth challenge by entrepreneurs and start-up ventures. Leaders in the industry point out the fact that VCs allow very less incubation periods for start-ups in the sector.


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However, there is the other side to this story seen from investors' perspective. Prominent VCs spoke to BioSpectrum and here is what they have had to say:

 Ms Padmaja Ruparel, president, Indian Angel Network

There is a need to understand the VC model. VCs raise money from investors in which they promise them returns in ‘X' number of years - called the ‘life of the fund'. In India, VCs have a life of 8 years and therefore by the 5th year they need to start exiting to adhere to their promise of 8th year closure. Hence they are restricted by their structure.

 Mr Vishal Gandhi, founder & CEO, BioRx Venture Advisors (BVA)

Companies should appreciate VCs because they understand their prospective portfolio before investing. In fact, VCs are not investing their own money. They are investing the money from their partners, which is available for a limited time. Beyond 5-7 years it is a very difficult situation.


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