Dan Primack of Fortune magazine has a post today on his blog, Term Sheet, about how one prominent venture capital firm is shutting down its investments in healthcare. This is not good sign.
The firm, Scale Venture Partners, cites the challenges of getting new drug submissions through the FDA as the basis for its actions.
A vibrant interest in healthcare by venture capital and private equity is critical to advancements in new therapies and devices. Government policies that chill investments in these areas are a problem and should be changed.