Biotech execs testify in support of Small Business Early-Stage Investment Act of 2009,

In Washington, the CFO of HR Biopetroleum and BIO testified in support of the Small Business Early-Stage Investment Act of 2009, regarding assistance needed by advanced biofuels companies. “Private equity and capital markets are increasingly failing to fund promising, early-stage scientific research, primarily because it is viewed as too high-risk relative to other investment opportunities,” said HR Biopetroleum’s Martin Savbarsky.

“This critical phase of commercial development is often referred to as the ‘Valley of Death’ within the biotechnology industry, given the potential for companies and technologies at this stage of their existence literally to die for lack of sufficient funding. The risk for biotechnology companies has been exacerbated greatly since the onset of the current financial crisis in the fall of 2008.”

According to BIO,  investments in clean technology companies were down 48 percent during the first quarter of 2009 and saw another 9 percent decrease from the second to the third quarter. A report released this week by the National Venture Capital Association and Thompson Reuters shows that venture capital funds raised during the third quarter of 2009 are at a 15-year low.

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