Financing, Insight journal - Dealtalk

Spring Has Sprung! Venture Funding up for Biotech

Posted on 05 April 2012

Tags: , ,

The birds are chirping, the garden is blooming and biotech is raking in the bucks – at least in the context of the past few years.

Based on BioWorld's data, the first three months of 2012 saw U.S. biotech venture rounds bringing in a rousing $391 million – a 34 percent increase compared to the same period last year.

The biggest jump showed up in the early rounds. Series A and seed deals brought in 63 percent more moola the first quarter, with a total of $98 million rolling into 11 companies. Investors put more of their cash into clinical-stage firms (25 percent vs. 7 percent for 2011) and much less of their cash into specialty pharma deals (26 percent vs. 83 percent for same period last year).

Median deal size didn't change much between 2011 ($4 million) and 2012 ($6 million).

That trend of supporting early stage innovators makes me very happy.

Those companies are the crucial engine for generating the new products that have a chance of making a significant clinical (as opposed to marketing) difference.

I realize the still-sluggish initial public offering (IPO) market means that venture investors have to have nerves of steel – not to mention brave limited partners – to stay in this game. I appreciate the vote of confidence their investments imply.

By Cynthia Robbins-Roth BioWorld Today Columnist

Read the full article at BioWorld here.



Read: more on dealtalk  in pharma, biotech, life science partnering deal news, insights and glossary

View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value

View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making

View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity

View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity

Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now

Signup: Current Agreements Deals Review – monthly newsletter - reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now

Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more

Follow us on: LinkedIn Current Partnering | LinkedIn Business Development Network | @Currentpartner on Twitter

Print Friendly, PDF & Email

Leave a Reply