Healthcare Sector Sees Steady Rise in VC Investment and Fundraising; Silicon Valley Bank Releases 14th Edition of Mid-Year Healthcare Investments and Exits Report

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[{"type":"text","content":"2024 shaping up to be a strong year for biopharma\nSAN FRANCISCO, Aug. 7, 2024 /PRNewswire/ -- In the first half of 2024, 89% of US venture capital (VC) funds at or above $25M hit their fundraising targets, marking the second-highest rate in history, according to the latest report from Silicon Valley Bank (SVB), a division of First Citizens Bank. The 2024 report also found that the biopharma sector could be on track for a record-setting year after reaching high investment levels, particularly in larger deals, with 55 biopharma companies securing deals of $100M or more.\n\n \n \n \n \n \n \n\n \nLeveraging 20 years of research and proprietary data analysis on healthcare venture trends, SVB's 2024 Mid-Year Healthcare Investments and Exits Report analyzes venture capital investing, fundraising and exit activity across the healthcare sector.\nThe latest report found that VC fundraising in the first half of the year has found its footing, with fundraising forming a new baseline of just under an estimated $20B raised per year. As valuations remain under increased scrutiny, more than 1 in 4 of US healthcare companies that closed a venture capital deal of at least $15M in 2024 reported a flat or down round, according to SVB. \n\"Companies are still working to achieve growth that matches high pandemic-era valuations,\" said Jackie Spencer, Head of Relationship Management for Life Science and Healthcare Banking at Silicon Valley Bank and author of the report. \"While each sector has its own story to tell, it's clear that 2024 activity shows investment in life sciences and healthcare is finding a path forward despite headwinds. With a continued focus on prioritizing profitability over growth and rationalizing valuations, we expect healthy and sustainable investment for the second half of the year.\" \nSVB's mid-year report also provides in-depth analysis for sectors across healthcare including biopharma, healthtech, medical device, diagnostics/tools (dx/tools). \nKey Findings: \nBiopharma: Private investment in biopharma had a strong start to the year, with H1 2024 being the largest half for Series A biopharma investing since H1 2021. Investment in rare disease companies ($508M in H1 2024) is on pace to improve from 2023, but still falls behind the dollars raised pre-pandemic ($2.1B in 2019).Healthtech: H1 of 2024 was the second strongest ...

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