The IPO window for biotechs is shut. BioHeart, a $6 million IPO in the first quarter, so far has been the sector's only initial public offering this year. The second quarter was void of deals. We seem to have entered a particularly dismal phase for financing venture-backed companies of any kind, not just biotechs. A recent report from the National Venture Capital Association and Thomson Reuters notes that for the first time since 1978, there were no venture-backed IPOs during the second quarter of 2008. With just five venture-backed IPOs in the first half, this year is lagging far behind 2007 when 43 venture-backed companies went public in during the same period. In reality, it's been tougher going in the IPO market for some time as investors have grown more selective and risk averse. Two consequences of this are that companies are waiting longer to go public and M&A is being embraced as an alternative exit strategy.