As we have previously observed, innovation in health care, particularly on the product side, is heavily dependent on venture funding, and on the cycle of successful exits that generates capital for new investments. 2014 was an excellent year for venture finance, according to recently released stats from the National Venture Capital Association. (NVCA Reports) In the fourth quarter, venture funds raised $5.6 billion and for all of 2014, $29.8 billion was raised, up 69% from 2013. There were 96 new funds and 158 follow-on ones. On the exit side, there were 27 venture-backed IPOs during the fourth quarter that raised $4.4 billion and for the full year there were 115 such offerings which garnered $15.3 billion. The number of IPOs was up from 81 in 2013 and the amount raised rose from $ 11.1 billion. 16 of these IPOs in the fourth quarter were in health care, raising $1.7 billion. There were also 95 venture-backed M & A exits, of which 29 reported an aggregate deal value of $26.4 billion, although this is sharply skewed by Facebook’s absurd $19.5 billion purchase of Whatsapp. The full year saw 455 acquisitions of venture-backed firms, with 132 reporting a total value of $46 billion. The comparable 2013 numbers were 393 deals with 95 reporting transaction values of $16.9 billion. Health care in the fourth quarter accounted for 10 of these deals, with 7 of them reporting a total value of $2.7 billion. Of reported deals in the fourth quarter, 5 of 29 returned less than was invested, 6 were at 1-4X, 11 were at 4-10X and 7 were over ten times investment. The financing and exit markets appear to be in good health heading into 2015.
Venture Funding and Exits in the Fourth Quarter and 2014
No Comments
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.
Healthy Skeptic Podcast
Research
MedPAC 2019 Report to Congress
June 18, 2019
Headlines
Tags
Access
ACO
Care Management
Chronic Disease
Comparative Effectiveness
Consumer Directed Health
Consumers
Devices
Disease Management
Drugs
EHRs
Elder Care
End-of-Life Care
FDA
Financings
Genomics
Government
Health Care Costs
Health Care Quality
Health Care Reform
Health Insurance
Health Insurance Exchange
HIT
HomeCare
Hospital
Hospital Readmissions
Legislation
M&A
Malpractice
Meaningful Use
Medicaid
Medical Care
Medicare
Medicare Advantage
Mobile
Pay For Performance
Pharmaceutical
Physicians
Providers
Regulation
Repealing Reform
Telehealth
Telemedicine
Wellness and Prevention
Workplace
Related Posts
Commentary
How to Waste an Election
November 6, 2024
How to Waste an Election
The new administration has to show determination to eliminate the deficit and begin reducing our…
Commentary
Credit Where Credit Is Due
November 6, 2024
Credit Where Credit Is Due
It has been an amazing campaign and Trump deserves all the credit for his perseverance.
Commentary
No Time for Gloating, Well, Maybe in One Respect its Okay
November 6, 2024
No Time for Gloating, Well, Maybe in One Respect its Okay
If you have come to despise Little Timmy, as I have, revel in his humiliation…