Amidst the bustle of January’s J.P. Morgan Healthcare Conference, The Recorder spoke with lawyers about the conference and the healthcare industry. Fenwick corporate partners Rob Freedman and Matt Rossiter weighed in on new medical technology and capital markets trends.
Rossiter and Freedman told The Recorder that they considered two questions during the conference: “What innovation is happening, and how is it getting financed?”
Rossiter said he sees promising new technological developments, especially in immuno-oncology and gene therapy.
On the financing side, Rossiter told The Recorder that he is monitoring the popularity of crossover investors which has grown over the last five years. These investors make investments before an IPO as well as during and after. More than half of 2015’s IPOs received funding from a crossover round.
Investments over $50 million have also become more common, Rossiter said. As a result, "you don't need to go get funding every few months,” Rossiter said. This trend enables companies to avoid the typical venture capital cycle.
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