10 statistics on US venture capital funding in healthcare

PwC and CB Insights published their Healthcare MoneyTree report providing an overview of U.S.-based venture capital funding in the healthcare industry for the fourth quarter of 2017.

Here are 10 statistics from the report:

1. Total U.S. healthcare investment increased 25 percent in 2017. A total of $14.4 billion was invested through 748 deals. Of that funding, 30 percent was raised in 20 megaterm deals.

2. The average venture capital investment increased from $10 million in 2012 to $19.3 million in 2017.

3. In the fourth quarter, approximately $4 billion was invested in the U.S. healthcare sector. There were a total of 182 deals, which was down from the 184 deals in the third quarter.

4. Concerning fourth quarter investment by stage:

  • 13 percent were seed stage investments
  • 28 percent were early stage investments
  • 29 percent were expansion stage investments
  • 11 percent were late stage investments
  • 19 percent were other kinds of investments

5. Concerning fourth quarter median deal size by stage:

  • $1.2 million during the seed investments stage
  • $9.1 million during the early stage investments stage
  • $15 million during the expansion stage investments stage
  • $22 million during the late stage investments stage

6. Biotech-related industries saw the largest increase in investments, rocketing up 43 percent from the third quarter of 2017, while medical device equipment investments fell 38 percent quarter over quarter.

7. The biotech industry continues to see the highest rate of investment, holding the top spot for three consecutive quarters.

8. New healthcare investment in New England companies is booming, with an 141 percent increase quarter over quarter, while Silicon Valley investment decreased 12 percent quarter over quarter. Three of the megaround investments were in New England, which raised the region's total investment by $539 million.

9. However, Silicon Valley still tops the rest of the U.S. in terms of deal value in 2017. Approximately $5.30 billion was invested in SIlicon Valley related to healthcare. New England was second with $3.74 billion in investments.

10. These five companies received the the largest deals in the fourth quarter:

  • Ginkgo BioWorks — $275 million
  • Precision Medicine Group — $275 million
  • Grail — $238 million
  • Cullinan Oncology — $150 million
  • Semma Therapeutics — $114 million

For more statistics, click here.

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