Click here to close now.



Welcome!

API Journal Authors: Pat Romanski, Matthew McKenna, Elizabeth White, Kevin Benedict, Anders Wallgren

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
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...