At biotech VCs, collecting ‘consulting fees’ from startups is widespread
Some of the biggest names in biotech venture capital have charged their startups millions of dollars in “consulting fees” over the past decade, effectively taking back a small portion of the money they invested in a company.
The fees are usually charged in exchange for certain additional services — such as when a venture capital firm loans an experienced executive to a startup to lead the company through its early days. They are far more common for venture capital firms that fund life science companies than for those that focus on technology or other sectors, according to venture capital experts, and can range from a few dollars to tens or hundreds of thousands per year, according to a STAT review of Securities and Exchange Commission filings.
Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!
GET STARTED
What is it?
STAT+ is STAT’s premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis.
Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.
What’s included?
- Daily reporting and analysis
- The most comprehensive industry coverage from a powerhouse team of reporters
- Subscriber-only newsletters
- Daily newsletters to brief you on the most important industry news of the day
- STAT+ Conversations
- Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
- Exclusive industry events
- Premium access to subscriber-only networking events around the country
- The best reporters in the industry
- The most trusted and well-connected newsroom in the health care industry
- And much more
- Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
Credit: Source link
Comments are closed.