In the new MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), funding in the life sciences sector rose by 52% over Qtr 1 and the number of deals increased by 36%. Total VC invested topped $6 B for the Qtr for the first time since Qtr 3 2008. The Life Sciences sector capture $2.1 B of that amount, and 63% of that went to biotechnology. Biotechnology captured one top 10 deal -- in excess of $50 M for the Qtr.
In good news for early stage companies, early stage funding jumped 72% in Qtr 2 over Qtr 1 and first time funding increased over Qtr 1 2009 and 2010 -- averaging $5.4 M per deal. In looking ahead, small, innovative companies will continue to benefit from big pharma companies with dwindling pipelines. Many of these companies have cash reserves to invest in young, cash-starved biotechs.
The full report is here.
Posted by Bruce Lehr August 6th 2010.