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Venture Capitalists Step Up Investment in Services

Executive Summary

As products from technology-driven start-ups increasingly fail to gain support from customers and investors, VCs are steering more of their life sciences funds towards services. The withdrawal from technology , however, is more like a fire drill than a stampede, owing to the non-proprietary nature of medical service businesses. Yet the inefficiencies in US health care beg for solutions and VCs plan to oblige--largely by proferring information systems.

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