Healthcare Investment Dollars in 1H 2021 Hit $47B

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Key takeaways

 
The pandemic has taught us resiliency. Economic activity in the healthcare market has translated into record venture fundraising, an acceleration in private investments in biopharma and healthtech and elevated IPO activity – ultimately changing the face of healthcare as we know it.

01

Venture fundraising dedicated to healthcare continues to rise

Fueled by venture healthcare’s rapid response to the pandemic, venture capital fundraising boomed in 1H 2021 to $21.8B, exceeding the full-year venture healthcare record in 2020 ($16.8B) by 25%.

02

Private investments led by healthtech and biopharma

Q1 2021 spiked to a record $23.2B, beating Q3 2020’s quarterly record by 46%. This aggressive activity continued into Q2 2021, increasing to $23.9B. Total healthcare investment dollars in 1H 2021 hit $47B, more than double 2020’s first half pace.

03

IPO activity is up, but post-IPO performance is waning

The number of venture healthcare IPOs in 1H 2021 (84) was close to 2020’s full-year pace (112). Post-IPO performance for the class of 2021, however, has been mixed, with good performance for dx/tools and device but lower for biopharma and healthtech.