It's been a long time since we've seen a corporate venture capital fund launched, what with companies laser focused on their core businesses and balance sheets. So we took notice when Merck Serono, a division of Merck KGaA,
launched a $54.7 million fund to invest in biotechnology startups. Merck Serono Ventures will focus investments in research that supports the drugmaker's core therapeutic areas, including treatments for neurodegenerative, autoimmune and inflammatory diseases.
Still, we don't expect this is a trend, and that we'll see other companies starting or restarting corporate venture funds anytime soon. Instead, the Merck Serono fund is more a reflection of the industry in which its parent operates. With big drugmakers cutting their internal R&D budgets, and facing increased competition as patents expire on blockbuster drugs, biotech alliances, always an industry staple, have become even more critical. Merck Serono is surely betting that a formal investment vehicle will give it an edge in establishing partnerships with the most promising startups. - Suzanne Stevens
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