We like to periodically check in on venture capital activity, which is critical to the formation and growth of new health care companies. The National Venture Capital Association, with help from other groups, compiles these statistics. (NVCA Reports) Starting at the front end, the 3rd quarter of 2015 was a weak one for fundraising, although overall 2015 looks like it could match 2014 in amount raised. 53 funds got commitments of $4.4 billion in the third quarter. A very low number of new venture funds received financing. In terms of investing by venture funds in the quarter, $16.3 billion was provided to 1070 companies, both down from the 2nd quarter. Life sciences firms got $2.9 billion in 194 transactions, basically flat from the earlier quarter. On the positive side, health care services companies saw a 178% increase in funding amount. Most investment is still going to later stage companies, although seed and early-stage financing remains respectible, with first-time fundings going up 7% to $2.5 billion. On the back end, exits also slowed, with both merger and acquisition and IPO activity on track to be down significantly in 2015 compared to 2014. For the third quarter of 2015, there were 90 merger and acquisition transactions involving venture-backed companies, with 20 of those having an announced value of $5.1 billion. There were 14 health care deals among these, and the of those had a reported value of $1.654 billion. The IPO market has definitely slowed, with 13 initial public offerings in the quarter raising $1.7 billion. 10 of these were life sciences IPOs. Venture activity hasn’t cratered by any means, but does seem to be slowing, which is not surprising given its strength for so long.
✅ 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 [email protected].
Healthy Skeptic Podcast
This is an outstanding report on total global drug spending and trends, with projections out to 2025. It helps you understand this important area of health care, which does much...
June 1, 2021
MedPAC 2019 Report to Congress
June 18, 2019
It may be investors that need the redesign. They just keep pouring money into this digital health crap despite all the losses. Redesign Health claims that it makes money by...
September 16, 2022
In truth, this seems like more money down a rathole. Google’s parent and other investors are putting a billion dollars into Google’s health arm, Verily. Apparently want to compete with...
September 12, 2022
It is like investors have learned nothing from the past two years. Even supposedly smart investors like Morgan Health, which is making a $20 million contribution to LetsGetChecked, which supposedly...
September 12, 2022
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