VC-backed exits and healthcare funding/investment both set new records yet again in 2021, according to Silicon Valley Bank’s (SVB) annual Healthcare Investments and Exits report.
VC-backed exits and healthcare funding/investment both set new records yet again in 2021, according to Silicon Valley Bank’s (SVB) annual Healthcare Investments and Exits report.
New venture funds allocated to healthcare in 2021 almost doubled 2020’s record with investment into companies exceeding USD86 billion in the US & EU (30 per cent increase from 2020) leading every sector to hit record highs.
While the venture backed healthcare industry saw record IPO activity across the board the average post-IPO performance for 2021 was muted (-21 per cent average) and similarly while SPAC mergers were also up this year it was a poor year for de-SPAC performance (-44 per cent average).
Healthtech experienced the greatest increase in investment of 162 per cent. Part of this growth is due to the device market, which saw a four-times increase in European investment specifically. Healthtech also saw the number of financials with USD1 billion-plus valuations explode and the creation 42 new unicorns (four-times more than 2020).
Biopharma saw increased funding in platform, neurology and anti-infective while orphan/rare activity continued to slow. Overall biopharma investment set a new record with USD6.8 billion financings (two-times more than 2020), but remained flat in Europe throughout and dipped globally in H2 as investors shifted focus to challenging public markets.
While Dx investment trailed all other healthcare sectors, the UK continued to be a hot bed for deals in this area with 20 seed/series A deals. Overall dx/tool investment saw a new record with the number of USD100 million-plus financings tripling from 2020 up to 40 in the US/EU.
Venture healthcare investment in EU & US companies will total about USD64 billion as VCs slow down their deal pace but continue to invest from recently closed funds.
