At biotech VCs, gathering ‘consulting fees’ from startups is common

Some of the major names in biotech venture capital have charged their startups tens of millions of dollars in “consulting fees” above the earlier 10 years, successfully using back a small portion of the dollars they invested in a business.

The expenses are generally charged in exchange for selected added products and services — these types of as when a enterprise money company financial loans an experienced executive to a startup to direct the firm by way of its early times. They are considerably extra widespread for undertaking money corporations that fund life science companies than for these that focus on technologies or other sectors, in accordance to venture cash authorities, and can assortment from a couple dollars to tens or hundreds of hundreds for each yr, in accordance to a STAT evaluate of Securities and Exchange Commission filings.

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