Welcome!

Cognitive Computing Authors: Liz McMillan, Yeshim Deniz, Shelly Palmer, Elizabeth White, Rajeev Kozhikkattuthodi

News Feed Item

Life Sciences Venture Capital Investing Posts Gains in Q3 2012 According to the MoneyTree Report

Venture Capital Investing in Biotechnology Companies Drives Quarter-over-Quarter Increase

NEW YORK, Nov. 29, 2012 /PRNewswire/ -- Venture capital (VC) funding in the Life Sciences sector, which includes the Biotechnology and Medical Device industries, gained in Q3 in terms of dollars compared to the second quarter of 2012, but the sector still trended downward for the year, according to a new PwC US report, "Biotech bounce," that includes data from the PricewaterhouseCoopers LLP/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters.

(Logo: http://photos.prnewswire.com/prnh/20100917/NY66894LOGO )

Venture capitalists invested $1.7 billion in 181 life sciences deals during the third quarter of 2012. When compared with the same quarter of last year, that performance represented a drop of 12 percent in dollars and 8 percent in number of deals. Quarter-over-quarter life sciences funding fared better, gaining 16 percent in dollars but declining 2 percent in number of deals. A 64 percent leap in biotechnology funding drove the quarter-over-quarter increase.

"The 16 percent gain for the life sciences sector reversed a four-quarter decline," said Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US. "Yet the sector won't outpace 2011 unless it gets a boost during the final quarter. Regulatory uncertainty, capital intensity, and investment time horizons remain challenging issues for would-be investors in the sector."

For all sectors, venture capitalists invested $6.5 billion in 890 deals in Q3 2012, a decrease of 10 percent in dollars invested and a 12 percent decline in deals, compared to $7.3 billion going into 992 deals in the third quarter of 2011. The Life Sciences share of total venture capital dollars invested rebounded to 26 percent in Q3, a six percent increase from Q2 2012, which was the lowest level since the third quarter of 2002.

Biotechnology investing jumped by 64 percent in dollars and 22 percent in deals compared to the prior quarter, with $1.2 billion going into 116 deals in Q3 2012, which placed it a distant second behind the Software industry in terms of dollars invested during the quarter. On a year-over-year basis, biotechnology investments rose 7 percent in both dollars and the number of deals.

In Q3, Medical Device investments dropped to the lowest dollar level since 2004 and fell to sixth place among all industries for the quarter, a big drop from being the second largest industry category in the prior quarter.  With $434 million going into 65 deals in Q3, investments into the Medical Device industry dropped 37 percent in dollars and 27 percent in deals from Q2 2012.  On a year-over-year basis, dollars invested fell 42 percent in dollars and 27 percent in deals.

"The gains in biotechnology funding can be attributed to some big follow-on rounds. It's unclear whether the biotechnology industry can maintain these gains through the end of the year," Lefteroff said.  "Despite regulatory uncertainty and a long path to exit, venture capitalists are still willing to invest in the life sciences sector, but they are cautiously looking for innovative products targeting unmet needs."

First-Time Financing

During the third quarter of 2012, 32 Life Sciences companies received venture capital funding for the first time, capturing $170 million. This represents a decrease of 30 percent in dollars invested and no change in the number of deals compared to the third quarter of 2011. First-time deals in the Life Sciences sector averaged $5.3 million in the third quarter of 2012 compared with an average deal size of $7.5 million in the third quarter of 2011.

Funding by Sub-segment

Three of the seven Biotechnology sub-segments exhibited growth in the third quarter of 2012 compared to the third quarter of 2011. The Industrial Biotech subsegment rose 196 percent to $250 million, the Animal Biotech subsegment rose 66 percent to $42 million, and the Biotech Equipment subsegment rose 62 percent to $47 million.  Funding for all other subsegments decreased during the third quarter. The Human Biotechnology subsegment captured the largest share in the third quarter with $816 million going into 77 deals but declined slightly year-over-year in both dollars and deals.  

Within the Medical Device industry, only the Medical/health Products subsegment saw an increase in Q3 2012 from Q3 2011, increasing only 4 percent in dollars to $78 million. The Medical Diagnostics and Medical Therapeutics subsegments both experienced declines during the same time period, however, the Medical Therapeutics category still accounted for 72 percent of the dollars and 50 percent of deals in the third quarter with $311 million going into 33 deals.

Investments by Region

The top five metropolitan regions receiving Life Sciences venture capital funding during Q3 2012 were San Francisco Bay ($366 million), Boston ($344 million), San Diego Metro ($183 million), Chicago ($106 million) and Philadelphia ($99 million).  Four of the five regions saw increases in investing in Q3 when compared to Q3 2011.  San Francisco Bay was the only region of the five that experienced a decrease in this timeframe, dropping 44 percent in dollars invested.

Investments in Biotechnology accounted for 83 percent of the dollars invested in the top five regions in Q3 2012. The top five regions captured 66 percent of the dollars invested in Life Sciences companies in the third quarter of 2012.

A full copy of the report is available for download at www.pwc.com/us/lifesciencesmoneytree

About PwC's Pharmaceutical and Life Sciences Industry Group

PwC's Pharmaceutical and Life Sciences Industry Group (http://www.pwc.com/us/pharma and http://www.pwc.com/us/medtech) provides clients with audit, tax and advisory services. The firm has extensive experience in delivering industry-tailored solutions on a wide range of strategic, financial and operational issues. The Pharmaceutical and Life Sciences Industry Group is part of PwC's larger initiative for the health-related industries that brings together expertise and allows collaboration across all sectors in the health continuum.  Follow PwC Health Industries on Twitter at http://twitter.com/PwCHealth.

About the PwC Network

PwC firms help organizations and individuals create the value they're looking for. We're a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

© 2012 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.  This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

SOURCE PwC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.