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Sector-by-sector look at what’s in store for the restof 2011

Technology and venture capital

The resilience of the region’s entrepreneurial ecosystem is likely to be tested over the next six months, and business leaders are paying close attention to whether investments and dealmaking activity maintains its first-half pace.

Analysts, for instance, have a cautious eye on the number of companies that will go public in the second half of the year after a volatile stock market this month caused some firms to postpone plans. Mid to late September could be a telling time frame.

When it comes to venture capital, John Backus, managing partner at New Atlantic Ventures, will be watching two indicators: how many companies raise money for the first time and how many venture capitalists invest outside their existing portfolio. “It’s much more a signal of the strength of the market when a new investor comes into a company than when an existing investor puts more money into it,” he said.

Government action could be a wildcard. The prospect for tighter federal budgets is front of mind for many biotechnology firms, said Alan Eisenberg, executive vice president of emerging companies and business development at the Biotechnology Industry Organization. Changes to Medicaid coverage of services and drugs, in particular, could impact the sector.

—Steven Overly