CLSA in Bloomberg: Venture Capital Still Flowing to Life Sciences, Stoking Innovation
Companies chasing products in precision medicine and digital health are getting more venture capital love as investors see the upside of innovations in genomics and other cutting-edge technologies.
Life sciences deals with valuations exceeding $100 million doubled to 28 percent in the third quarter from 14 percent in the first quarter of 2016. That compares to technology deals with similar valuations dropping to 23 percent from 29 percent during the same period, the Cooley Venture Financing Report for the third quarter said.
Amid declining U.S. venture capital deal activity, health-care companies attracted $11 billion in venture funding and increased their share of total capital invested to 19 percent in 2016 from 16 percent in 2015, said Kash Kapadia, chief executive officer of consultant Digital Directive, citing PricewaterhouseCoopers Moneytree and CB Insights data.
“These underlying complementary trends bode well for innovation in precision medicine and digital health as much of the investment is being directed towards areas such as genomics, medical diagnostics, clinical insights, hospital management and drug discovery,” Kapadia told Bloomberg BNA Jan. 25.
Life Sciences Deals Blossoming
California in 2016 was the top state for life sciences VC investment with $4.4 billion in funds—$3.3 billion in biotech and $1.1 billion in medical devices, the California Life Sciences Industry Report said. Massachusetts was second with $2.9 billion. The life sciences are second only to software in California for VC funding, California Life Sciences Association spokesman Will Zasadny said Jan. 25.
The venture funding arc shifted with dollars that flowed to tech moving toward life sciences, Third Rock Ventures partner Alexis Borisy said Jan. 23 during a session of the Precision Medicine World Conference in Mountain View, Calif. “I think we’re in a strong, longtime golden age of innovation.”