Healthcare venture capital funding to hit new high in 2018
Venture capital funding continues to pour into healthcare startups, and the pace this year is already expected to top 2017's total figure of $15 billion, according to data from the MoneyTree report from PwC and CB insights.
During the second quarter of 2018, healthcare companies raised $5.3 billion in venture capital (VC) funding across 216 deals, on par with the $5.3 billion raised during the first quarter.
Across all industries, venture capital-backed companies raised $23 billion across 1,416 deals—a new record, PwC found.
The healthcare sector was second only to $8.9 billion raised in 610 deals completed in the internet sector. Healthcare represented 15 percent of all VC investments during the quarter.
Not only were there more deals, but they appeared to be getting bigger. More than 45 mega-rounds raised $100 million or more, with the second quarter marking the third straight quarter with more than 30 mega-rounds.
Two healthcare startups were among the largest U.S. deals in the second quarter. California-based Allogene Therapeutics, a biotechnology company developing cancer treatment therapies, raised $300 million from venture firms Vida Venture, BellCo Capital and TPG Capital, which has also invested with health insurance provider Humana in the acquisition of Kindred Healthcare and Curo Health.
Grail, a disease diagnosis company based in California, also raised $300 million during the second quarter, with funding from Sequoia Capital China, Ally Bridge Group and Blue Pool Capital.
Beyond venture capital, the healthcare sector has also seen an influx of private equity funding over the last few years, though rising valuations have curbed the appetites of some potential investors in the sector.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."