New Records for Healthcare Fundraising, Investments and Exits
Key takeaways
01
Strong exits propelled a fourth straight record year in venture fundraising
2020 venture fundraising soared, exceeding 2019’s record with $17B in new venture funds in healthcare.
02
Q3 2020 surge in venture investment led healthcare to a record $52B
Every sector experienced record investment this year, with 2020’s funding rising 50% from 2019.
03
IPOs led exit activity, and large private M&A deals resurfaced
Venture-backed healthcare IPOs yielded record valuations and post-IPO performance of +100%.
The data
Biopharma Series A by top indications and CipherBio deep dive
Compared to other indications, neurology Series A deals saw the largest increase, jumping over 6x in dollars and 55% in funded deals. SVB’s CipherBio platform provides deep dives into specific modalities and targets, like neurology.
HealthTech Series A by top subsectors
This year, healthtech Series A deal volume declined 6%, while total Series A funding increased 14%. The 16% increase in median Series A deal size may have been driven by companies seeking to raise capital to weather the COVID-19 pandemic.
Dx/Tools and Device Series A by top subsectors
Dx/Tools Series A deals and dollars this year were flat. On the device side, Series A deals and dollars continued a two-year decline. Despite these trends, total funding in both sectors increase in 2020.
SVB global healthcare index post-IPO performance comparison
The SVB global healthcare index* (+71%) has recovered faster and substantially outperformed the FAMGA (+52%), S&P 500 (+13%) and Nasdaq Healthcare (+31%) indices.
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