One of the more entertaining party questions when hanging with VCs is a variant of “boxers or briefs?” It is, IT or biotech? Fans of investing in the former point to IT’s long-term returns, the ability to get partial successes, the size and frequency of exits, and the absence of regulatory barriers; fans of the latter point to the barriers to entry, the rapidly improving science, and the human willingness to pay virtually anything for better health.
While all of this might seem to tip the scale in IT’s favor, most biotech and many IT investors think that IT is past its peak and may even have matured as a venture category, while biotech finally has the tools and data to become a more consistent winner. So, is biotech set to exit its boom-bust past? Perhaps, and it’s about time: