How specialized biotech VC firms are dominating funding again

Generalist investors, attracted by the Covid-19 boom in biotech innovation, invested heavily in startups in the sector between 2020 and 2022. Now, however, these investors are backing off, making way for specialised biotech venture capital firms to lead developments again. Experts suggest the inherent complexity of biotech requires deep understanding of science and regulations, which standards investors often lack, increasing their risks. Some believe generalists will likely return, but using more cautious strategies.