New Records for Healthcare Fundraising, Investments and Exits
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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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This material including, without limitation, to the statistical information herein, is provided for informational purposes only. The material is based in part on information from third-party sources that we believe to be reliable but which have not been independently verified by us, and for this reason, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment or to engage in any other transaction.
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