For the first half of 2011, corporate venture funds comprised 12% of overall venture capital investment, up from 5.3% in 2010, according to PricewaterhouseCoopers and the National Venture Capital Association. Corporate venture funds were responsible for 25% of early-stage biotech financing in the first half of this year, versus 15% for all of last year. Traditional venture capitalists are investing in safer opportunities, paving the way for corporate venture funds to become the largest funding source for biotech firms. Novartis spends the most on venture investments, followed by Novo Nordisk and Amgen. Amgen’s venture fund has supported 26 firms since its $100 million inception in 2004, investing up to $10 million per company. Boehringer Ingelheim’s Michel Pairet, head of the company’s $132.4 million venture fund, surmised that 10% to 15% of the fund’s firms will be purchased by the company.

Source: BusinessWeek