Venture capitalists remain bullish on medical devices, healthcare IT
 |
According to a Jan. 20 report from Dow Jones, investors poured $8.4 billion into 738 deals for healthcare companies—down only a little from 2010, when the industry drew $8.3 billion for 747 deals.
Biopharmaceuticals brought in $3.9 billion for 302 deals while 290 medical device deals raised $3.3 billion.
An interesting aside popped up in 2011’s third quarter, when devices bested drugs for the first time since 1998.
Finishing third within healthcare was IT, which corralled $633 million for 86 deals. Dow Jones’ VentureSource cited the strength of interest in EMRs, internet and mobile applications, and information management tools. The numbers represented a 26 percent increase in deal activity and a 22 percent increase in capital raised over the previous year for healthcare IT.
“The fourth quarter may have seen a temporary slowdown as venture capitalists reset their expectations [across all industries] and entrepreneurs adjusted their companies’ valuations to suit the current climate,” Jessica Canning, global research director for Dow Jones said in a statement. “Overall in 2011, venture investment continued its steady post-recession ascent with notable strength in enterprise solutions.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.