Silicon Valley may no longer be the hotspot for healthcare investing that it once was; according to PwC | CB Insights' Healthcare MoneyTree Report Q4 2017. Silicon Valley investors closed 24 percent fewer healthcare deals in the fourth quarter than the third quarter and Massachusetts topped the list of states with the greatest deal value.
Here are five key trends to know.
1. Silicon Valley healthcare deals have been up and down over the past two years, with the largest number of deals occurring in the third quarter of 2017 and the highest value occurring in the first quarter, when Silicon Valley raised $1.7 billion. In the most recent quarter, however, Silicon Valley reported 38 deals for $1.15 billion.
2. There were nine healthcare mega rounds in Silicon Valley last year, raising $2.5 billion; this is up from the five mega-round deals in 2016 raising $606 million.
3. Over the past two years, there were 34 healthcare mega-rounds raising $6.7 billion, and 47 percent of the mega-round dollars invested were in the Silicon Valley. As a result, as the deals and dollars in the Valley decline, mega deals remain strong for healthcare.
4. California was the No. 2 state for healthcare fundraising deals in the fourth quarter, hitting $1.2 billion raised. Massachusetts had 38 deals raising $1.58 billion.
5. In the fourth quarter, the average deal size for California was $24.7 million raised.