The US healthcare venture capital market produced 100 transactions totalling USD1.83bn in the first quarter of 2009, which represents slightly less funding and only three fewer deals th
The US healthcare venture capital market produced 100 transactions totalling USD1.83bn in the first quarter of 2009, which represents slightly less funding and only three fewer deals than the same quarter of the previous year, according to Healthcare Corporate Finance News.
According to the report, the median (USD11.6m) and the average size (USD18.3m) of healthcare venture capital rounds announced during the first quarter were both nearly the same as a year earlier.
Four privately held healthcare companies announced investment rounds of USD50m or more during the first quarter. The largest deal announced during the quarter was a USD200m investment in newly formed Actient Pharmaceuticals, which secured a USD200m commitment from GTCR. Sopherion Therapeutics announced the second-largest deal of the quarter, a USD55m investment from Zoticon Bioventures.
‘Activity during the first quarter of 2009 is relatively level with the four preceding quarters, both in terms of total dollars raised and number of deals, indicating some steadiness in this market,’ says Gretchen S. Swanson, the publication’s editor.
The report says that in the current economy, the healthcare venture capital market is getting a slice of a smaller pie, because institutional investors have suffered losses and are rebalancing their portfolios across all asset classes.
The most active venture capital firms of the quarter, based on publicly announced transactions, participated in four or more rounds.
Numerous firms participated in three healthcare venture capital rounds during Q109, including Essex Woodlands Health Ventures, New Enterprise Associates, Forbion Capital Partners and Venrock Associates.
Strategic investors that participated in deals during the quarter include Alnylam Pharmaceuticals, BlueCross BlueShield Ventures, GlaxoSmithKline, Lilly Ventures and Medtronic.
