Venture capital dribbles into Johns Hopkins startups
I just had a good conversation about Hopkins startups with Aris Melissaratos, the former secretary of the Maryland Department of Business and Economic Department who is now a top senior advisor to Hopkins U's president.
Here's an interesting stat he tossed out: In fiscal 2008, Hopkins' researchers spun out 12 companies that attracted $76 million in venture capital. (Most of the investment came from VC firms in California and Europe.)
In the last fiscal year (July 1, 2008 to June 30, 2009), Hopkins sprouted 10 companies. Not bad, considering the recession, right?
Well, take a look at how much money they were only able to attract? Just $3.2 million, Melissaratos said.
Ouch. Shorthand explanation: Blame the recession.
This is one of several facts I'm going to include in an upcoming story that surveys the state of the startup scene, in terms of investment funding availability, in the Baltimore area. Stay tuned.
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Comments
I'm guessing these were mostly (if not all) biotech startups that got spun out?
$300k average round is not going to take a them very far..
Posted by: Paul Capestany | September 17, 2009 2:24 PM
Angles (nationwide) tend to look for companies in a position for a series A for angel financing. Angel capital now operates much like VC. This results in an unbalanced, disrupted financing ecosystem. The symbiotic relationship between Angels and VCs is no longer behaving in the way it has in the past, hence making "crossing the chasm" more difficult for the entrepreneur. This makes "corporate" or "strategic" investments more attractive to start-ups, however these types of investments carry their own unique challenges as opposed to strict venture plays. Still, I feel the benefits of corporate investments outweigh the risks. -Alan
Posted by: Alan C. Viars | September 17, 2009 6:13 PM