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    Healthcare Industry Trends
    2022 Annual Report

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    Key takeaways

     
    The latest edition of SVB's Healthcare Investments and Exits report provides information on VC fundraising, investments and M&A and IPO trends - along with subsector analysis and video commentary for each. Healthcare trends indicate US healthcare VC investment was healthy in 2022 despite an economic downturn. There's plenty of dry powder to deploy; however, investments and exits are slowing due to the volatile market.

    1

    More available venture capital to invest

    $50B+ in newly raised funds over the past 24 months and nearly $22B in new funds last year — falling just short of 2021's record $28B

    2

    Second largest investment year ever

    Deals and dollars declined after a record-setting 2021, but total healthcare investment for 2022 still exceeded 2020, though Q3 and Q4 fell below 2020’s quarterly average

    3

    Exits are sluggish

    Few IPOs this year and less M&A than expected due to public market cap erosion

    Video: Healthcare Investments & Exits Overview


    Watch Jon Norris, managing director for healthcare and lead analyst at SVB, share what to expect from the 2022 annual report.

    Watch more videos covering biopharma, healthtech, dx/tools and device below.

    The data

     

     

    Note: US Healthcare Venture Capital Fundraising defined as an approximation of healthcare investment dollars to be invested by firms that historically invest in +50% US companies. Estimates based off of anecdotal conversations with investors and expert analysis of last fund deal pace and focus on healthtech.
    Source: PitchBook and SVB proprietary data.
    HEALTHCARE FUNDRAISING

    Investors aggressively fundraise into the downturn

     

    Healthcare VC fundraising hit nearly $22B in 2022 — second only to the record set in 2021 with an unprecedented amount raised in the first half of 2022.

    Venture fundraising is predicted to decline to about $15B in 2023, as most firms recently raised new funds. We also expect investor deal pace to continue to be slower than 2021, leading to longer time between new fundraises.

    HEALTHCARE INVESTMENTS

    Investments remain historically high despite market challenges

     

    Strong investment in Q1 2022 was followed by drops in Q2 and again in Q3, falling below average dollars raised per quarter in 2020, while Q4 was down only slightly, bolstered by a bounce-back in biopharma and dx/tools.

    This year’s investment drop-off was essentially the result of later-stage investors pausing new deal activity and investors dedicating more time and capital to supporting existing portfolio companies.

    Note: Investment data includes deals as of 12/16/2022. Healthtech deals that overlap with other sectors are not included in healthtech totals on this chart. With overlap, healthtech investments for 2022 total $22B. Financing data include private financings by venture-backed companies in the US and Europe. Dates of financing rounds are subject to change based on add-on investments.
    Source: PitchBook and SVB proprietary data.

     

    Videos: Subsector trend analysis

     
    Watch SVB’s own Jon Norris share healthcare findings across biopharma, healthtech, dx/tools and device providing commentary on seed/Series A, overall investment, deals and dollars by top indications and listing the largest deals for the year.
    Healthcare report segment deep dive on Biopharma presented by Jon Norris
    Healthcare report segment deep dive on Healthtech presented by Jon Norris
    Healthcare report segment deep dive on DX Tools presented by Jon Norris
    Healthcare report segment deep dive on Device presented by Jon Norris

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    Written and researched by SVB experts

     

    Our deep relationships with top entrepreneurs and investors inform our insights and give us a vantage point unlike any other bank.

    Down Arrow
    Jonathan Norris Headshot
    Jonathan Norris
    Managing Director
    Raysa Bousleiman Headshot
    Raysa Bousleiman
    Vice President, Venture Capital Relationship Management, Life Science and Healthcare
    Raysa partners with venture capital firms focused on healthcare and life science innovation, and drives global research exploring venture healthcare trends.
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