-- Initial public offerings (IPOs) will be on hold for the near future. IPOs are off the table given the harsh economic environment and the fluctuating stock market. However, well-funded corporate investors aiming to enter the biotech space stand to benefit from the market's dismal economic straits. Expect more biotech start-ups to successfully exit through mergers and acquisitions rather than IPOs for at least the next year. -- Next-generation bio-energy will gain momentum as corn ethanol start- ups fold. Next-generation bio-energy firms will see significant investment in the coming three to five years. Many start-ups have only begun capital- intensive scale-up to demonstration or commercial levels. Meanwhile, investments will dry up in corn ethanol as more VCs realize that the market's viability is driven by corn and oil prices more than scale of production. -- Genetically modified (GM) food technologies will attract more investment. Four of the past decade's nine successful exits occurred in GM- food companies, for a total value of approximately $160 million. That, combined with increasing concerns about water scarcity, will attract more VC funding for GM-food crop technology."Investors can use three strategies to find their way out of the woods," said Udupa. "They should apply concrete lessons from recent successes and failures, take a portfolio approach to feedstocks and products, and target newer opportunities in food, water, and carbon." "Finding Exits for Biofuels and Biomaterials Investors" is part of the Lux Biofuels and Biomaterials Intelligence service. Clients subscribing to this service receive ongoing research on market and technology trends, continuous technology scouting reports and proprietary data points in the weekly Lux Research Bio Journal, and on-demand inquiry with Lux Research analysts. About Lux Research Lux Research provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.
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