VCs lean to biotech
IT sees less venture investment

This article on a recent report on VC investment shows a 20%drop in VC funding in 2003, below 2002, and very weak funding for IT companies... although uptick in 4th quarter 03.

Best inidcators are for Biotech! Cleveland is well positioned for biotech start-ups and the marketplace is clearly active!

John Shinal, Chronicle Staff Writer Tuesday, January 27, 2004
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Biotechnology startups grabbed a bigger slice of a shrinking venture capital pie in 2003, according to a report released Monday.

That's in stark contrast to information technology companies, which saw venture investments plummet to their lowest annual total in six years.

The total amount invested in all venture-backed startups fell 20 percent to $16.9 billion last year from $21 billion a year earlier, according to the joint report from industry researcher VentureOne and the consulting firm Ernst & Young.

The shift toward biotech investments "is one of the biggest trends we're seeing" in venture investing, said John Gabbert, the vice president of worldwide research at VentureOne in San Francisco.

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