New Records for Healthcare Fundraising, Investments and Exits
Thank you for your interest in insights from SVB! Get access to our industry-leading healthcare and technology reports under Signature Research. And learn more about our Global Life Science & Healthcare Practice.
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.
SVB’s Global Life Science & Healthcare Practice
Learn how SVB has been supporting healthcare companies and investors for decades.
Learn moreExplore other Healthcare reports
Written and researched by SVB experts
Our deep relationships with top life science and healthcare entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.
Stay up to date with SVB
Get our Healthcare insights in your inbox