Q1 MedTech Financings Results Mixed While Total VC Investment Highest Since Q2, 2001

Posted in Medical Venture Capital by Arundhati Parmar on April 18, 2014

Venture capitalists invested the most money in the first quarter of this year since the second quarter of 2001, while medtech showed mixed results with less deals but more money invested compared with Q4 of last year.  

Venture capitalists poured in $9.5 billion in 951 deals in the first quarter of 2014, which represents the highest quarterly total since the second quarter of 2001, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.

But medtech saw mixed results. 

As expected, the software industry accounted for the largest share of venture capital invested - 42% of total dollars and 44% of total deals in the first quarter. But it also scored big in the  quarterly increase in amount invested which rose 39% to $4 billion from the fourth quarter of 2013. There was also a slight uptick in the number of software deals to 414 from 409 in the fourth quarter of 2013.

By contrast the medical devices and equipment industry saw the number of deals plummet 37% to 61 in the first quarter from the prior quarter. However, on a heartening note, dollars invested rose 28% to $588 million. Overall, investments in Q1 in the life sciences sector that includes biotechnology and medical devices fell 10% in dollars and 28% in deals when compared to fourth quarter of last year.

Here is a geographical distribution of where the $588 million was invested in the U.S., taken from the MoneyTree Report website. 

[Photo Credit: user SaulHerrera]


-- By Arundhati Parmar, Senior Editor, MD+DI



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