Biotechnology

Biotechnology has again captured the largest quarterly share of venture capital funding of any industry. According to findings by PricewaterhouseCoopers and the National Venture Capital Association, it is off to an even better start this year than last, with funding showing a 35% rise. The life science sector investment split has been generally consistent for the past two-and-a-half years. During the second quarter, biotech accounted for 63% of life science sector funding, compared with 58% during the second quarter of 2009, with medical devices composing the remainder. Biotech funding increased by 59% in dollars and 34% in deals, from $812 million in 104 deals for the first quarter to $1.3 billion in 139 deals for the second quarter. Biotech equipment was the only nongrowth subsegment, with a drop in funding from $54 million to $43 million. Three subsegments increased their funding from the previous quarter, with pharmaceutical biotech, industrial biotech and human biotech growing by 125.4%, 66.7% and 48.0%, respectively. The in vitro mAb diagnostics area of human biotech received funding of $135 million, a significant increase. Early-stage funding rose 36%, but grew 72% from the previous quarter. Late-stage funding increased by 41% from the previous quarter and 60% year over year.

Source: PricewaterhouseCoopers

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