State seed money State leaders are trying to nurture all sorts of biotech activity with the idea that at least some will create the jobs and economic development they crave. The efforts are beginning to pay off. Organizers of a Madison conference to educate researchers about starting biotechnology companies thought they would draw about 50 people. More than 150 turned out. Now there are dozens of companies.
Biotech businesses are a significant part of the local economy.
All of the activity is drawing interest from private-sector investors. Costly research Venture capitalists who specialize in biotechnology are well aware that backing companies in this industry is different from other investments, says John Neis, a senior partner with Venture Investors Management LLC in Madison. Expenses for research and shepherding a new drug through the approval process can mount quickly. Now that researchers have cracked the genetic code, others are moving on to an in-depth study of proteins. Venture capitalists, stockholders and other investors will want to get in early because the returns will be dramatic, Neis says.