The LifeSciVC blog just published some interesting data on returns achieved from all VC investment deals (7976), as well as Life Science VC deals (763) over the past decade (2003-2013). The analysis looked at the number (%) of deals that returned over 5x and 10x to at least one investor, plus deals that achieved net gains of at least $50 M or $100 M for at least one investor.
The results show 80 deals (about 8 per year) were over 5x return and 27 (2.7 per year) topped 10x in the Life Science VC sector. Sixty-one (61) deals delivered above $50 M and 26 delivered above $100M, or approximately 6 adn 2 deals per year on average as compared to the total 60 exits per year on average.
Now if you look at the percentage of Life Science delas that delivered over 5x or 10x, and over $50 M or $100 M versus the same figures for all VC deals, you find the percentage of deals hitting the 5x or 10 x hurdle in both sectors is equivalent ( a litle over 8% and 3.5% respectively). But, if you look at deal magnitude -- against the $50 M and $100 M hurdles, you see the Life Science sector is almost 50% more likley to exceed these hurdles than all VC. Check it out at LIfeSciVC blog.
If you didn't already surmise this, Life Sciences isn't a bad place to invest.
Posted by Bruce Lehr Sep 18th 2013.